CMSPI STATE OF THE INDUSTRY REPORT
2.5
Overall Scorecard
DEBIT CARD
17.4 18.3 17.1 17.1 17.0 13.9 16.1 16.3
BUY NOW, PAY LATER
DIGITAL WALLET (PASS THROUGH) DIGITAL WALLET (STAGED/STORED)
CREDIT CARD
CASH
REAL-TIME PAYMENTS
BANK TRANSFER
Buy Now, Pay Later is a type of loan where users are able to make a purchase and receive the good or service immediately while paying off the loan over a set period of time with little or no initial payment. Some BNPL providers have expanded their services to include financing and full one- time payments. 569 570
BUY NOW, PAY LATER
STABLECOIN
12.0
Scorecard Summary Buy Now, Pay Later (BNPL) has seen widespread global acceptance, mostly in North America, Europe and Asia Pacific regions. While acceptance is high, consumer adoption is low and the refund process can be cumbersome leading to a lower user experience score. Since the BNPL provider makes purchases on behalf of the consumer, they also assume any fraudulent risk involved which makes the merchant less susceptible to fraud; however, the ease of applying for micro loans through BNPL providers makes consumers more at risk for fraudulent activity. BNPL also was shown to have the highest cost for merchants in our cost of payments analysis. On the consumer side, there is a lack of rewards and potential high fees and interest on debt which contributes to lower cost score compared to other payment methods. Lastly, BNPL is yet to be widely regulated which has the potential to put both consumers and merchants at risk. There is an absence of decision-making forums and government involvement which leads to a lower governance score.
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