How Does BNPL Success in 5 Steps


Deloitte and cloud banking platform Mambu have identified the five steps merchants and fintechs need to embrace in building a successful Buy Now Pay Later (BNPL) offering. This is part of a new report exploring the implications of the fast-growing sector for banks and retailers.

The ‘Deloitte and Mambu Guide to BNPL’ 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 business’ portfolio and bringing the minimum viable product to life.

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

Exceptional growth is predicted in BNPL in Malaysia this year, with BNPL payments expected to grow by 109.5% to reach US$601 million in 2022. Adoption of BNPL is expected to continue growing steadily, at a CAGR of 49% from 2022-2028.[1]

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 more than half of consumers (56%) cite the ability to test a product before making a payment as a key driver for using BNPL.

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

William Dale, Commercial Director at Mambu APAC, said: “BNPL is positively booming in Malaysia, and, coupled with the new digital banking licences soon to be issued by Bank Negara Malaysia, the Malaysian financial services industry is in for a period of enormous change and growth. New innovations like BNPL service on credit cards and insurance have already hit the market, and we’re seeing several examples of established banks collaborating with new BNPL fintechs to meet consumer expectations. It goes without saying that BNPL is an area of massive potential for banks and financial service providers, as well as for retailers. Mambu has produced this BNPL report with Deloitte to highlight the steps organisations need to take to make the most of this market opportunity.”

João Caldeira, Partner at Deloitte added: “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 instalment-based payments at the point of decision can change a business.”

To download the full report, please visit

20 April 2022

Author: VSDaily Editor

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