BNPL - Sustaining Growth and Building Profitability

How can BNPL providers maintain growth and build profitability? In the early days, BNPLs grew quickly by partnering with large retailers to rapidly expand transaction volumes. But the landscape is shifting as most large merchants have already aligned with at least one BNPL firm, and a significant share of younger consumers already use BNPL regularly. Meanwhile, scrutiny from investors seeking profits, regulators probing consumer interests, and a variety of competitors looking to join the game may add stronger headwinds. BNPLs will likely be forced to more aggressively address opportunities like fraud reduction, expanded merchant services, and consumer loyalty incentives.