Buy now pay later (BNPL) payment in the UK is expected to grow by 50.5% on an annual basis, to reach £23bn ($30bn) in 2022, according to the Q4 BNPL survey.
The research reveals that medium to long term growth of BNPL in the UK remains strong and it will continue to grow steadily.
BNPL payment services have grown exponentially in the UK since the onset of the pandemic. Besides pureplay BNPL providers such as Klarna and Afterpay, leading retailers and banks also introduced BNPL products to expand their market share.
For example, in December 2021, Amazon joined forces with Barclays to introduce ‘Installments’.
However, while larger ecommerce brands have been flocking to BNPL, SMEs have been more resistant to adopt this growing product.
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According to a recent survey amongst payment service provider Mollie’s 130,000+ ecommerce SME customers, 71% say it’s unlikely they will implement the payment method.
“Seamless checkouts in the hyper-competitive ecommerce market are key, and one-click checkouts and BNPL are becoming default,” Mollie UK country manager Josh Guthrie said.
“Retailers need to balance the use of BNPL to grow revenues with making sure they are doing enough to educate shoppers and are being transparent, trustworthy and being fully customer-centric.”
Guthrie believes that despite the reluctance of some SME ecommerce retailers to offer BNPL as a payment method, if they are clear, transparent, and honest about both the pitfalls and value of BNPL, they will win the trust of the consumer.
“They can then grow their revenue and market share with a clear conscience,” he says.