Providers of ‘buy now, pay later’ (BNPL) options are growing fast as their model finds increasing appeal among a younger demographic which thinks differently about credit. 

  • The likes of Klarna, Affirm and Afterpay are valued in the billions of dollars and, in the US alone, BNPL is expected to fuel more than $20 billion worth of purchases in 2020.
  • Klarna claims it will grow its US customer base by 50% in Q4 2020 to reach 15 million – as an existing trend is accelerated by the pandemic.
  • The majority of these customers are aged under 36 and 80% use a debit card when using Klarna’s solutions. 

“We want to sit at the intersection of shopping, banking and payments and really make all of those activities smoother for a customer” – David Sykes, head of Klarna US.

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Sourced from WARC