The 107% growth of the BNPL (Buy Now, Pay Later) users is expected to be fueled by the increasing efforts of superapps and banks to develop their own flexible loan offerings.

A new study from Juniper Research found that by 2028, the number of BNPL (Buy Now, Pay Later) users worldwide will grow from 380 million users in 2024 to 670 million in 2028, illustrating a ?107% surge. At the same time, around 10 billion BNPL transactions are forecast to occur in 2028.

The fintech market research firm also observed a major shift in the BNPL landscape in 2023. Starting last year, superapps and banks have been continuously gaining traction in the segment.

As an illustration, we have previously reported that Citi bank launched a BNPL option for Costco Anywhere Visa cardmembers while BNP Paribas has switched to the Buy Now, Pay Later B2B platform.

Notably, WeChat and Grab are popular superapps with hundreds of millions of users that offer BNPL services embedded within their platforms. Market leader Klarna also recognised the potential of superapps, transforming its app and blending multiple functions into a single platform.

Juniper Research experts believe that in the near future, the market will see not only more superapps offering BNPL but consolidated retail experiences tailored to consumer demand. That might significantly alter the market shares of fintech companies.

Research author Matt Purnell noted that, in an increasingly competitive BNPL landscape, vendors must not only stand out with their offerings but also incentivize repeated use. For instance, they can create a user base of loyal customers through reward points or increased loan limits for consistently punctual repayments.

The research team also highlighted the importance of regulatory discussions and general BNPL prevalence for growing consumer confidence in BNPL solutions. Recognition from banks creates trustworthy BNPL experiences not only for individuals but also for businesses, while fraud risk is better mitigated compared to non-regulated BNPL vendors.

Furthermore, established fintech BNPL providers have been also developing their own security solutions to boost customer trust. Thus, Klarna conducted a six-month pilot project with German private credit bureau Schufa for Buy Now Pay Later service customers to be better protected against over-indebtedness last year.