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The increasingly perilous “Buy Now, Pay Later” (Episode 3)

While deferred payment is not new, luxury goods bought through leasing arrangements is a strong trend that has increased with the pandemic. This instalment method, flexible and free from initial interest rates, offers immediate satisfaction to consumers. On the flip side, it would lead to over-indebtedness.

Cristina D’Agostino

By Cristina D’Agostino21 janvier 2021

USD 353 B

of transactions via BNPL in 2019 worldwide

USD 680 B

of transactions via BNPL in 2025 worldwide

80%

of consumers via BNPL are GenZ and Millennials

According to Affirm, BNPL solutions are expected to triple over the next two years (Shutterstock)

This is one of the most important accelerations of the past years. Already used for more than a decade, the “Buy Now, Pay Later” method, or BNPL, has experienced an important increase with the creation of many platforms offering this financing model to brands, and therefore to consumers. In all sectors, the total transaction value of BNPL will increase from 353 billion dollars in 2019, to 680 billion dollars in 2025 around the world, according to Kaleido Intelligence.

For Karine Szegedi, associate at Deloitte and luxury sector specialist, the trend is clear: “The BNPL program has certainly been one of the biggest trends of the retail market last year, accelerated by the pandemic and its

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