The Buy Now Pay Later (BNPL) market was worth $141.8 billion in 2021 and is predicted to increase at a compound annual growth rate (CAGR) of 33.3% between 2021 and 2026. Online payments are fast increasing as more people use online purchasing, promoting BNPL market development. BNPL has grown in popularity as an alternative credit option in recent years, and this trend is projected to continue over the projection period. The payment mechanism has developed as a popular option among Generation Z and Millennials.

Although the BNPL industry is growing, the apparent benefits of BNPL may represent a danger to both borrowers and lenders.

For example, if a borrower fails to make an installment payment, the debt may increase. Customers will be charged late fees if they are late on their payments. This highlights the significance of regulating the industry in order to break the vicious loop of borrowers' debt being passed on to BNPL providers, who then send it on to credit bureaus, badly influencing their credit ratings.

According to GlobalData, the BNPL market will increase at a CAGR of 33.3% from US$141.8 billion in 2021 to US$596.7 billion in 2026. Part of the reason for the sector's quick growth has been a lack of regulation. Governments throughout the world, however, are scrutinizing the industry and possibly adopting laws to safeguard customers/borrowers from going into default.