PUBLISHER: yStats.com | PRODUCT CODE: 1420797
PUBLISHER: yStats.com | PRODUCT CODE: 1420797
“Globally, Buy Now, Pay Later options were essential to some holiday shoppers affected by the inflation:” new yStats.com report.
In the U.S., the BNPL payment value is forecasted to almost double between 2022 and 2026, with the growth rate of the BNPL payment value in the country remaining positive but declining over the years. The number of BNPL users in the U.S. is also forecasted to increase by over 30 million in the same period, displaying the continuous interest in use of BNPL services. According to findings in the new yStats.com report, at the end of 2022, a double-digit share of holiday shoppers in the U.S. who said that they will be majorly or moderately affected by the inflation stated that having BNPL options was an essential to have during the holiday season. In the UK, that share reached only a single digit percentage, displaying the rising dependence on BNPL services of U.S. shoppers affected by inflation.
With the growing BNPL adoption in the U.S., credit bureaus are criticizing that the existing credit scoring models in the country are not compatible with the BNPL loan type, leading to issues in credit history collection of BNPL users, according to data cited in the new yStats.com report. As of today, major BNPL providers like Klarna, Afterpay, and others do not or only partially report their users' transaction and account information to the national credit bureaus, even though these BNPL providers give out not only short-term, interest-free loans but also offer longer-term, interest-bearing loans that would in other cases affect credit scores.