Ph365 download apk latest version.FG777 update today,Tp777 casino

Science & Technology

Deloitte and Mambu identify five steps for BNPL success in new report

May 05, 2022

Deloitte and Mambu have identified the five steps merchants and fintech need to embrace in building a successful BNPL offering

The guide released by Deloitte and Mambu identifies five core building blocks for businesses looking to develop a BNPL solution in an increasingly competitive environment:

  • Value proposition – defining and understanding what merchants and customers need and developing a model to solve their key pain points
  • Technology and data – developing a tech stack with best-of-breed partners to enable real-time decisioning as well as the creation of next-generation solutions that deliver distinctive customer experiences
  • Risk and compliance – designing a risk framework that provides a competitive edge, from in-built fraud detection and management to defining the risk appetite, model and strategy
  • Skills and capabilities – investing in specialised talent in critical areas to compliment businesses’ existing teams as well as build their brand and differentiate their product in the market
  • Go-to-market – bundling the offering within a businesses’ portfolio and bringing the minimum viable product to life

The report comes amid booming demand for BNPL services, with the market projected to be worth $3.98 trillion by 2030 – growing at a CAGR of 45.7%.

Consumer demand for convenience and affordability is one of three factors driving this growth according to the report, with recent data from Deloitte showing that 56% of consumers cite the ability to test a product before making a payment as a key driver for using BNPL.

Our report with Deloitte defines what BNPL success looks like and the practical steps financial and non-financial brands need to take in order to capitalise on the market opportunity. With fintechs already directing billions of revenue away from banks via BNPL services in recent years, incumbent players risk losing out if they fail to act now. BNPL will continue to erode unsecured retail lending post-pandemic, so it’s vital that financial institutions think strategically about if and how they decide to play a role in this new business line - we hope this guide will enable them to do just that
Kunal Galav, Regional Director, EMEA Advisory at Mambu

Other growth factors include widespread merchant adoption, as vendors look to reap BNPL benefits, such as increased sales conversions and average order sizes, as well as accelerated market traction during the pandemic.

BNPL is now a key sales and conversion driver for retailers and ecommerce providers. Merchants, if they have not done so already, are looking around for an embedded finance solution that can help them design BNPL experiences at speed and at low-cost. The bottom line is that it’s a new revenue driver and having the ability to quickly add seamless installment-based payments at the point of decision can change a business
João Caldeira, Partner at Deloitte

According to Worldpay data, BNPL accounted for 2.9% of global e-commerce in 2020, and is expected to reach 5.3% by 2025.

Source: Research and Markets, Buy Now Pay Later Market Country Reports, 2021

We’ve reported that Moldova is offering a safe place for Ukrainian IT companies.

SEE ALSO:

Pay Space

7166 Posts 0 Comments

Our editorial team delivers daily news and insights on the global payment industry, covering fintech innovations, worldwide payment methods, and modern payment options.