
‘Buy Now, Pay Later’ is expanding fast, and that should worry everyone

The convenience of the Buy Now Pay Later offering has led to explosive growth. While the global BNPL market was pegged at just $7.3 billion in 2019, it is expected to reach $12.9 billion by 2022.
Mario Gabriele • The Checkout as a Territory
“The reality is that the increased cost-of-living and inflation have put more people in a situation where they’re already relying on revolving credit,” Elliott said. “The psychographics of ‘buy now, pay later’ may be different — people don’t think of it as debt — but it is.”
The Associated Press • Gen Z Is Drowning in Debt as Buy-Now-Pay-Later Services Skyrocket: ‘They’re Continuing to Bury Their Heads in the Sand and Spend’
Though existing financial businesses have similar tools at their disposal, BNPL companies’ incentives directly align with this future: they justify themselves only so much as they increase conversion above the status quo. Spurred by competition, that mission may lead exponents to pursue a more invasive relationship and dig deeper.