A new study from Juniper Research forecasts a significant growth in the global Buy Now, Pay Later (BNPL) user base, predicting a 107% increase by 2028, from 380 million users in 2024 to over 670 million. The report suggests that banks and superapps are focusing on underrepresented demographics and incentivising BNPL through consolidated offerings tailored to consumers, such as integrated eCommerce platforms.

Despite fintech companies dominating the BNPL market for years, 2023 saw a major shift as superapps and banks gained traction. Notable superapps offering BNPL include WeChat and Grab. Market leader Klarna has transformed its app into a superapp, indicating a future trend of more superapps offering BNPL and consolidated retail experiences tailored to consumer demand.

Regulatory discussions and the general prevalence of BNPL have increased consumer confidence, leading to more people utilising these solutions. Banks have begun offering their own BNPL products, adding protections to transactions for seasoned BNPL users and risk-averse or older populations. Recognition from banks also provides confidence to businesses, with fraud risk being mitigated relative to non-regulated BNPL vendors. Over 10 billion BNPL transactions are forecasted for 2028.

Juniper Research's new market research suite offers a comprehensive assessment of the BNPL market, providing analysis and forecasts for over 36,900 data points across 60 countries over five years.

"As the BNPL landscape becomes increasingly competitive, vendors must not only stand out, but incentivise repeated use through reward points or increasing loan limits for consistently punctual repayments," said Matt Purnell, Research author at Juniper Research.