PAYMENT METHOD PROFILES: BNPL 2
Cross-Border/FX Capability Buy Now, Pay Later services are only offered in participating countries for the specific provider. Some providers with more global presence allow consumers to make cross-border purchases, while others have restrictions on where the payment method can be used. 643 644 645 Providers like Klarna even offer zero foreign exchange fees for transactions made internationally on the Klarna Visa card. 646 Refunds The nuances of refund policies vary across BNPL providers; however, the common denominator is the responsibility of the consumer to return the merchandise to the merchant to initiate the refund. 647 648 649 This process involves a third-party in comparison to refunds directly from the merchant or chargebacks from the bank. However, consumers in the U.S. are protected under the Truth in Lending Act to dispute transactions with the BNPL provider. , 650
Analysis The global BNPL ecommerce transaction value grew from $59 billion in 2019 to $286 billion in 2022. 651 In the United States alone, the number of originated loans increased from 16.8 million to 277.3 million and the gross merchandise value from $2 billion to $33.8 billion from 2019 to 2022. 652
U.S. BNPL Originated Loans Growth (2019 v 2022)
U.S. BNPL Gross Merchandise Value Growth (2019 v 2022)
300
$10.00 $15.00 $20.00 $25.00 $30.00 $35.00 $40.00
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$- $5.00
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Graph 2.33 653
Graph 2.34 654
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