Illustrative photo: VNA Hanoi (VNS/VNA) — Deloitte and cloud banking platform Mambu have identifiedthe five steps merchants and fintech firms need to embrace in building asuccessful Buy Now Pay Later (BNPL) offering.
This is part of a new report exploring the implications of thefast-growing sector for banks and retailers.
The ‘Deloitte and Mambu Guide to BNPL’ identifies five corebuilding blocks for businesses looking to develop a BNPL solution in anincreasingly competitive environment. They include: Value proposition;Technology and data; Risk and compliance, Skills and capabilities; andGo-to-market.
The report comes amid booming demand for BNPL services, with themarket projected to be worth 3.98 trillion USD by 2030 - growing at a CAGR of45.7 percent.
Consumer demand for convenience and affordability is one ofthree factors driving this growth according to the report, with recent datafrom Deloitte showing that more than half of consumers (56 percent) cite theability to test a product before making a payment as a key driver for usingBNPL.
Other growth factors include widespread merchant adoption, asvendors look to reap BNPL benefits, such as increased sales conversions andaverage order sizes, as well as accelerated market traction during thepandemic. According to Worldpay data, BNPL accounted for 2.9 percent of globale-commerce in 2020, and is expected to reach 5.3 percent by 2025.
In the Vietnamese market, the fintech ecosystem is growingrapidly. BNPL has seen a significant increase over the past 12 months in Vietnam,with domestic BNPL payments expected to grow 137.3 percent year-on-year toreach 491.3 million USD this year. The sector as a whole is expected to grow36.5 per cent annually. These projections are directly related to the increasein online shopping in Vietnam. With over 8 million new consumers across digitalchannels, the e-commerce market has grown by 53 percent in 2020./.
