The rise and evolution of buy now pay later
                     The rise and evolution 
of buy now pay later
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BUY NOW PAY LATER
• BUY NOW PAY LATER (BNPL) has experienced phenomenal growth in the last few 
years. As people are shopping more they are getting to know about this comfortable 
option where they can purchase now and pay later. It has proved to be an excellent 
business model and an option for the financial sector to revive. It has changed a lot.
Look at the changes that took place over a year.
• Change is imperative and something that should be continued throughout life. With 
this BNPL has reached different levels. BNPL has dominated the last three years and 
gained a huge customer list with attractive payment options. It is working in several 
sectors like fashion, retail, and more. A completely new evolution of BNPL can be 
seen in the financial service industry.
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Let’s have a look at the different stages of evolution.
• An open loop system is now in trend
A closed loop system means when the merchants and customers are connected 
through the BNPL provider. This value exchange happens within the boundaries as 
said and set by the Buy Now Pay Later provider means a contractual agreement is 
signed. In short, a cardholder can only use it to purchase from a single company. 
Whereas in an open loop the card can be used anywhere and it is accepted.
• Increasing competition
It has been for many years that banks were observing the growth of BNPL and no 
doubt the way it started and gained so much success with millions of active accounts. 
It is emerging as a threat to the financial institutions getting famous day by day with 
more customer engagement. BNPL pay has built trust in the market and in this way it 
is emerging as a threat to the rest of the institutions that are pushing themselves to 
rise above BNPL.
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• BNPL in different segments
BNPL providers have saturated the core industries 
and are looking for new categories to enter in 
order to garner more customers and grow from a 
business perspective. BNPL providers are adopting 
new strategies to enter into more segments and 
become a famous mode of payment.
• Emerging from product to platform
From just a product to a platform it is diversifying 
and emerging. BNPL is increasing its relevance and 
is dealing with different partners and adopting 
different policies. They are partnering and coming 
up with different collaborations making 
themselves a huge financial platform.
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