The digital payment landscape is rapidly evolving, and there is a growing demand for various payment solutions across different industries, from e-commerce to education technology and online travel. Buy Now Pay Later (BNPL) services, in particular, have been gaining popularity among the younger demographic of Gen Z and millennial customers who find it convenient to manage their finances.
According to research by RedSeer, the use of BNPL services in the UAE is expected to rise from 10% in 2020 to 30% by 2026, with an estimated total of over $2 billion in consumer credit. This is due to the ease of use, transparency and flexibility offered by BNPL, which has removed friction between traditional credit cards and lending and is widely accepted by tech-savvy customers.
For merchants, using BNPL services adds an extra layer of stickiness to their business and reduces the risk of basket abandonment. BNPL providers pay the total order amount upfront and then lend the money to customers, making the checkout process smoother and more convenient.
As the demand for BNPL services continues to grow, BNPL providers are exploring new ways to increase customer loyalty and order conversions across various industries, including banking, luxury retail, travel, hospitality, insurance, trading and healthcare. To this end, banks and other schemes have started launching their versions of BNPL services alongside their other payment products, such as credit and debit cards and traditional lending.
In the near future, the BNPL market is expected to continue its growth and expand into new industries as more and more players enter the market and competition increases. Other digital payment solutions are also on the rise, including e-wallets, digital wallets, online payment gateways, and QR code payment systems.
E-commerce businesses are also turning to various payment solutions, such as e-invoicing and electronic invoice processing systems, to streamline their payment processes and make it easier for customers to pay. Online travel businesses are exploring online travel payment solutions and gateways to make the booking process more seamless. Education technology businesses are looking into ed tech payment solutions to make it easier for students to pay for their courses.
The government and insurance sectors are also exploring online payment solutions, such as online payment gateways and systems for government sites and insurance sites, to provide their customers with secure and convenient payment options. Non-Banking Financial Companies (NBFCs) are also exploring similar solutions to offer their customers the best payment experience.
The rise of these various payment solutions has led to the development of smart payment buttons, such as pay buttons, pay by link, and pay here buttons, which make it easier for customers to initiate payments from within the platform. This, in turn, has led to the creation of various payment form templates, payment links and QR codes for payment, which allow customers to quickly and easily make payments with just a few clicks.
In conclusion, the world of digital payments is rapidly evolving, and there is a growing demand for the best online payment solutions across different industries. Whether it’s BNPL, digital wallets, e-commerce payment gateways, or ed-tech payment systems, businesses always look for the most secure, convenient, and user-friendly payment options for their customers. As technology advances and competition increases, we expect to see even more innovative payment solutions soon.
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