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Lending Briefing: 2021 BNPL results, C&I lending picking up again

  • US BNPL players are pursuing aggressive growth strategies, but doesn’t necessarily mean healthy growth - underlying performances are beginning to surface some concerns in the market.
  • In commercial and industrial lending, volumes are picking up for the third consecutive quarter since the onset of the pandemic.
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Lending Briefing: 2021 BNPL results, C&I lending picking up again

2021 BNPL results: What’s really going on under the hood?

Buy Now, Pay Later is undoubtedly growing as the preferred e-commerce payment mode, and so is the appetite for more growth from the fintechs in the sector. 

The BNPL market is expected to grow by 181% and account for 13% of all global e-commerce payments by 2024, according to the 2021 Global Payments Report by Worldpay from FIS. By 2025, BNPL leaders such as Afterpay, Affirm, Klarna and PayPal are expected to process $650 billion to $1 trillion in transactions.

But aggressive growth doesn’t necessarily mean healthy growth, and investors are closely monitoring the underlying performance of these businesses. 

Recent results disclosures revealed potential warning signs for the future, signaling that confidence in the BNPL sector might be dwindling. So what’s been going on?

 


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