Buy now, pay later (BNPL) has emerged as one of the most popular online payment methods, as surge in digital payments during the COVID-19 pandemic kindled the growth of BNPL consumer lending. Against this backdrop, influencer conversations on Twitter around BNPL recorded a 40% growth in Q2 2022 (April-June) over the previous three months, according to the Social Media Analytics Platform of GlobalData, a leading data and analytics company.
Smitarani Tripathy, Social Media Analyst at GlobalData, comments: “Influencers on Twitter believe that the demand for BNPL is likely to increase despite the looming regulations and rising interest rates, as it provides the best customer experience in the fintech industry. This reflects in GlobalData findings, which show that the global transaction value of BNPL payments is set to increase from US$120 billion in 2021 to US$576 billion in 2026.”
Conversations spiked the most when Apple unveiled its plan to enter the BNPL market during the Worldwide Developers Conference (WWDC) 2022 event in the second week of June. Most of the influencers tracked by GlobalData appreciated the company’s move, as customers can make payments over a six-week plan with no interest or fees.
Below are a few most popular influencer opinions captured by GlobalData’s Social Media Analytics Platform:
“#BNPL platforms are providing some of the best #customerexperience in the industry These players are moving into the ranks of longtime #loyalty leaders”
“Despite looming #Buynowpaylater #regulation to address #financial #risks #BNPL popularity still going strong @Fiserv & @Affirm team up to cash BNPL demand #Ecommerce #payment #digitalpayment #debt #Lending #Fintech #finserv #regulation #regtech”
“My prediction: BNPL providers will grow much faster than CC over the next decade, because they’re starting with a tiny sliver of commerce. That’ll create enormous value.”
“new #consumer #credit tactics threaten to add more debt as schemes emerge to hook people into #BNPL. For ex. “Increase conversions…Our financing programs remove price as a barrier, turning browsers into buyers, increasing average order value…”
“Apple is jumping on the Buy-Now-Pay-Later bandwagon with its newly announced Apple Pay Later service. The service will allow US customers to pay for online and in-app purchases over a six-week plan with no interest or fees. #installments #BNPL $APPL”
“#Apple will finance Apple Pay’s #BuyNowPayLater loans by itself – using its $200 Bn cash reserves. This already makes their economics better than the rest of the #BNPL #fintech rivals who borrow the money that they loan to their consumers.”
“I agree with that although I will say that a lot of the value to customers with BNPL appears to be helping them buy stuff that they can’t afford. That’s obviously not great for them long term, but it does seem to be something they value in the short term.”