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STATE OF THE INDUSTRY REPORT
Our second lowest score is for BNPL - mainly because of high merchant fees necessitated by a large cost base. The BNPL industry is in need of scaling, and increased regulation may provide a headwind to growth, but a loyal, young consumer base potentially positions it well for the future. The lowest score is for stablecoin, which is nascent in the consumer-to-business space. Stablecoin’s score reflects the fact that critical infrastructure has not yet been established to accommodate the plethora of C2B use cases, but strong tailwinds exist in the form of high levels of regulatory support, a strong business case for stablecoin for merchant business-to-business (B2B) transactions, merchant appetite to reduce payment fees and strong consumer support in several countries. Watch this space. The Future of the State of the Industry Report In future editions of the State of the Industry Report, we will see how each payment method develops. As the chasing pack develops functionality in areas such as recurring payments and dispute resolution mechanisms, we fully expect to see some changes in the scores and the rankings. Based on the outcomes of our analysis discussed above, the payment methods with the most momentum appear to be real-time payments and stablecoin, but both have a long way to go if they aim to knock debit cards off their perch as the top global consumer-to-business (C2B) payment method.
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