Buy Now, Pay Later (BNPL) payments in the UK will have grown by around 35 per cent to reach over $42 billion by the end of 2022.

According to a new report from Research and Markets, global BNPL payments are expected to have increased by 44 per cent on an annual basis to reach $614.6 billion in this year.

The global BNPL industry has grown over the past four quarters due to increased e-commerce demand as well as slower economic growth as a result of the pandemic.

In the UK, the report found that traditional banks and retailers are now offering BNPL to expand their market share and increase sales. While the fashion sector makes up a significant proportion of the BNPL market, it’s also becoming more popular across travel, healthcare and B2B applications.

The study suggests that UK regulators are becoming increasingly accepting of BNPL, as a number of BNPL providers are considering sending consumer credit reports to credit agencies in the UK.

BNPL is also gaining in popularity in the Middle East and North Africa. According to the report, BNPL will have grown by 31 per cent in the United Arab Emirates over the past twelve months with Gen Z consumers using BNPL services the most.

The figures come after GlobalData research revealed that the BNPL sector would surpass $1 trillion by 2030.

The data and analytics company said that BigTech companies and payments providers becoming more invested in the BNPL sector would spur its capitalisation.

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