Dublin, Aug. 28, 2023 (GLOBE NEWSWIRE) -- In the midst of strong financial performance and a positive market response, Buy Now, Pay Later (BNPL) giant, Affirm, has further solidified its position within the growing global BNPL industry. Affirm’s shares soared by 28% on Friday, following the company's fiscal fourth-quarter results, which exceeded expectations and provided optimistic guidance for the upcoming quarter. These results closely mirror the projections of a recent market research report, which anticipates substantial growth in the BNPL sector.
According to the comprehensive report released earlier this year, the Global BNPL Payment industry has experienced substantial growth over the past year, primarily driven by the rapid rise in ecommerce. By 2023, Global BNPL payments are projected to grow by 21.7% annually, reaching a staggering US$527,942.3 million. This significant increase in BNPL payment adoption is supported by Affirm's reported gross merchandise volume (GMV) of $5.5 billion, marking a 25% year-over-year increase.
The BNPL payment method, which gained traction during the Covid-19 pandemic, aligns with the rising trend of online shopping, resulting in high transaction volumes for providers like Affirm. Affirm's strong performance, despite changes in interest rates and consumer demand, underscores the resilience and potential of the BNPL industry, as detailed in the market research report.
Moreover, the report highlights an increasing trend towards strategic collaborations in the BNPL sector. Several providers, like Atome and Afterpay, have forged alliances with travel-focused platforms to offer BNPL services, particularly in the Asia Pacific region. This trend underscores the sector's potential for further expansion and diversification.
As more retailers, including industry behemoth Walmart, consider introducing their own BNPL payment solutions, the number of global BNPL users is predicted to increase significantly. Furthermore, the market research report suggests that the push towards in-store BNPL transactions will likely drive the next phase of growth in the sector, a move affirmed by partnerships such as the one between Tabby and Al-Futtaim Malls, as well as Zip's strategic collaboration with WebBank.
Affirm's financial achievements and forward-looking strategies, as highlighted in the news story from Friday, reflect the broader growth and projections found within the Global BNPL market research report, available in full here.
About the Market Research Report
The extensive report offers a deep dive into the BNPL industry's dynamics at both the global and country level, detailing market opportunities, risks, and future forecasts across various retail categories. Those interested in leveraging this growth and understanding the industry's future trajectory are encouraged to review the full report.
The market research report provides a detailed and comprehensive analysis of the Buy Now, Pay Later (BNPL) industry on a global scale, shedding light on market dynamics, growth opportunities, risks, and future forecasts. Through rigorous research methodology and data-driven insights, the report offers an unbiased perspective on emerging business and investment opportunities within the BNPL sector. For a complete breakdown and further details, please visit https://www.researchandmarkets.com/r/hbf4fo.
Source: CNBC
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