The Checkout as a Territory

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.

Rather than focusing on a specific segment, Affirm has made a name specializing in larger purchases.

There are downsides. BNPL users cannot build their credit score by using the product (though they also protect it from damage), and it is not nearly as universally available as paying by credit card. There are signs that this is changing, though.

Millennials, many of who began careers or watched family members suffer through the recession, developed an aversion to credit cards, with just 33% using them, per a 2016 survey.

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.