Digital lending platforms offer consumer and business loans, and the global digital lending platform market is projected to reach $20.31 billion by 2027. Consumer lending is often sliced into alternative lending, P2P lending, online lending, marketplace lending, PoS lending, and Buy Now, Pay Later (BNPL).
The global BNPL platforms market was valued at $7.32 billion in 2019, and it is expected to reach $33.63 billion by 2027. BNPL platforms have become quite popular in recent years owing to the ‘no interest’ feature. Most BNPL platforms do not charge interest rates for a defined period, and the payment can be made in installments.
North America dominates the global BNPL platforms market. It accounted for 43.7% of the market in 2019, followed by APAC and Europe.
Due to a slowdown in global economic growth, the global economy is estimated to have shrunk by 3% in 2020. Slow trade and unemployment have reduced the purchasing power of consumers. As a result, people across the world are leaning toward BNPL platforms to pay their bills. Online transactions using BNPL platforms are expected to increase.
Investors’ trust in BNPL platforms is evident from the first major tech IPO in 2021. Affirm went public on January 13, 2021, and raised $1.2 billion (24.6 million shares). The share jumped 100%, started at $49/share and …