Global Blockchain and Cryptocurrency Market 2021

Global Blockchain and Cryptocurrency Market 2021

Buy now, pay later services have gained momentum during the pandemic: new yStats.com report.

The latest publication from Germany-based online research firm yStats.com, “Global Buy Now Pay Later Industry and Trends 2021” provides insights into the current state and future trends of the BNPL industry across the globe. The publication reveals that due to the economic disruptions in 2020, the demand for BNPL payments increased significantly, and new local players appeared in different regions.

The global health crisis accelerated the use of BNPL services
Mainly in the developed world, BNPL services gained special attention during the COVID-19 health crisis. In the regions like Africa, however, the service providers still face issues such as limited credit infrastructure and a weak purchasing power. Generally, from the consumers side, BNPL adoption is mainly driven by the younger generation, and the main reason to use the services include zero interest rates and transparent payment plans and conditions. Moreover, a sampling of UK consumers showed that out of the traditional BNPL offerings, the majority of respondents prefer installment payments, rather than paying full amount later, according the new yStats.com publication.

Growth of the BNPL practice attracts the attention of government regulators
In many countries worldwide, local payment authorities raised concerns about the current state of the BNLP industry regulations. Often the practice does not fit the definition of traditional loans, which require interest rate payments, special rules are needed for these services. For example, in Europe, the European Commission announced the update of current consumer credit agreements to include BNPL service providers; the UK’s Financial Conduct Authority is to introduce new regulations in 2021; and the Reserve Bank of Australia is also contemplating new rules. National and regional regulators are mainly concerned about consumer default issues due to overspending and lack of transparency about the BNPL service conditions: alone in the USA, a significant share of BNPL users have already missed at least one payment, while well over half of users were in the upper range of the limit of their credit card at the time of first BNPL use, according to figures cited in the new yStats.com market report.

BNPL service providers proliferate, challenging established global brands
As a result of an increased demand for BNPL services during the pandemic, major service providers such as Klarna, Afterpay, and Affirm thrived in 2020, and continue doing so this year. These players significantly expanded their customer base amid COVID-19, and their revenues soared. Nevertheless, the net profits did not enjoy such growth, as most of them opted for new projects including launch of new services and further market expansion. Nevertheless, many local BNPL newcomers have emerged, and attracted significant capital investment, according to the yStats report.


1. Management Summary
2. Global Overview
BNPL Regulations Overview, March 2021
BNPL Trends and Benefits for Merchants, March 2021
Breakdown of Payment Methods When Booking a Service Related to Travel, incl. BNPL, in % of Adult Travelers, 2020
3. United States of America
BNPL User Penetration Rate, in %, and Share of BNPL Users Who Missed at Least One Payment, in %, December 2020
BNPL User Penetration Rate, in % of Respondents, and Change in Use of BNPL Compared to March 2020, in %, by Age Groups, September 2020
BNPL Service User Penetration Rates, by Age Groups, in % of Consumers, July 2020 & March 2021
Breakdown of BNPL Usage, by Credit Utilization Rate at First BNPL Transaction, in %, July 2020
Breakdown of BNPL Usage, by Credit Utilization Rate at First BNPL Transaction, in %, July 2020
Breakdown of Most Common BNPL Lenders Used, in % of BNPL Users, May 2020
Breakdown of Most Common BNPL Use Cases, by Product Category, in % of BNPL Users, May 2020
Breakdown of Reasons to Use BNPL, in % of Online Consumers, September 2020
Breakdown of Reasons to Use BNPL, in % of Consumers, July 2020
Breakdown of Online Consumers Who Would Be “Very” or “Extremely” Interested in BNPL, by Age Group, in % of Non-BNPL Users, March 2020 & September 2020
Share Consumers Who Would be “Very” or “Extremely” Interested in Using Digital Wallets that Offered Select Plans, by Age Groups, in %, September 2020
4. Europe
Overview of BNPL Startups, incl. Tymit, Montonio, Revo, Zilch, and Alma, March
Share of Cross-Border BNPL, in % of Total Cross-Border BNPL Transaction Value, 2025f
Breakdown of Select Payment Methods Offered by Merchants, by “Growth” and “Non-Growth” Mindsets of Merchants, incl. BNPL, in %, September 2020
Share of Consumers Who Would Like BNPL Added to the Credit Card or Current Account, in % of BNPL Users, October 2020
Overview of BNPL Startups, incl. Tymit, Montonio, Revo, Zilch, and Alma, March
Share of Cross-Border BNPL, in % of Total Cross-Border BNPL Transaction Value, 2025f
Breakdown of Select Payment Methods Offered by Merchants, by “Growth” and “Non-Growth” Mindsets of Merchants, incl. BNPL, in %, September 2020
Share of Consumers Who Would Like BNPL Added to the Credit Card or Current Account, in % of BNPL Users, October 2020
Share of BNPL Users who Prefer to Pay via instalments, and in One Later Lump-Sum Payment, in %, October 2020
Average Customer Debt, in GBP, by BNPL Service Providers, and by Age Groups, August 2020
Average BNPL Time to Pay Back, in months, by BNPL Service Providers, and by Age Groups, August
Breakdown of BNPL Usage Cases, in %, August 2020
Overview of Oney Bank’ BNPL Activity, March 2021
Breakdown of Top Requirements to a BNPL provider, in % of Respondents, 2020
Breakdown of the Channels of the Last BNPL Payment, and the Potential BNPL Channel, in % of Respondents, 2020
BNPL Adoption Rate, in % of Respondents Aware of BNPL, and Breakdown of Respondents Attitude Towards BNPL Usage in the Future, by Consumer Type, in % of BNPL Users, 2020
5. Asia
Overview of Top BNPL Service Providers, incl. Paidy, Pine Labs, Akulaku, Cashalo, Atome, and hoolah, March 2021
Yearly Transaction Values, in AUD billion, Active Users, in million, and Active Merchants, by Selected BNPL Providers, December 2020
Breakdown of the Most Frequently Used Online Payment Methods, incl. BNPL, in % of Online Shoppers, May 2020
Breakdown of the Most Frequently Used Online Payment Methods, incl. BNPL, by Annual Household Income, in % of Online Shoppers, May 2020
Share of Online Shopping Transactions via BNPL, by Age Group, in % of Online Shoppers, May 2020
BNPL User Penetration Rate, and Share of BNPL Users Who Made a BNPL Mistake, by Gender, in % Respondents, October 2020
Breakdown of the Most Common BNPL Mistakes, by Gender, in % of Respondents, October 2020
Share of Travelers Who Used Buy Now Pay Later Payment Method, in % of Adult Travelers, 2020
6. Middle East and Africa
Overview of BNPL Market and Service Providers, March 2021
Top 5 BNPL Startups, by Funding Amount, incl. Postpay, Tabby, and Tamara, December 2020
7. Major BNPL Service Provider: Klarna
Klarna’s Activity Overview, March 2021
Klarna’s Total Net Operating Income, and Net Profit, in SEK thousands, 2016 – 2020
Overall Number of Klarna’s Users, and Klarna’s Monthly Active App Users, in millions, 2019 & 2020
Top 10 CNBC Disruptor Companies, incl. Klarna, June 2020
Klarna’s Total Net Operating Income, and Net Profit, in SEK thousands, 2016 – 2020
Overall Number of Klarna’s Users, and Klarna’s Monthly Active App Users, in millions, 2019 & 2020
Terms of Use of Klarna’s Services, incl. Pay in 4, Pay in 30, Pay Now, and Financing, March 2021
Share of Klarna’s User Who Ever Missed a BNPL Payment, in %, October 2020
8. Major BNPL Service Provider: Afterpay
Afterpay’s Activity Overview, March 2021
Overview of Afterpay’s, PayPal’s and CommBank’s BNPL Service, incl. credit check, individual purchase price, max credit limit, Use Cases, Payment Plan, and Late Fees, March 2021
Afterpay’s Underlying Sales, Net Transaction Margin, Gross Losses, Total Income, Active Customers, Merchants, FY 2016 – FY 2020, and Year-on-Year Change, in %, FY 2020
Share of Transactions via Afterpay that are Paid Back on Time, in %, February 2021
Afterpay’s Share of Late Fees, in % of Afterpay’s Total Income, February 2021
9. Major BNPL Service Provider: Affirm
Affirm’s Activity Overview, March 2021
Overview of Affirms’s Key Financial Metrics, incl. GMV, Total Revenue, Transaction Costs, and Adjusted Operating Loss, Q4 2019, Q4 2020, H2 2019, H2 2020
Overview of Affirms’s Key Financial Metrics, incl. GMV, Total Revenue, Transaction Costs, Adjusted Operating Loss, and Weighted Average Shares Outstanding, Fiscal Q3 2021e, and Fiscal 2021f
Affirms’s Active Users, in millions, December 2019, June 2020, and December 2020
10. Select Payment Facilitators Offering BNPL Services
Various Facilitators’ BNPL Activity Overview, incl. Stripe, Mastercard, and Shopify, March 2021
Share of PayPal Credit’s User Who Ever Missed a BNPL Payment, in %, October 2020

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