No one could have predicted what 2020 would bring. That sentiment rings true across nearly every aspect of our lives, and the way consumers pay is no exception. Now well into 2021, changes in behavior offer insight into the evolution of digital payment trends since the pandemic began.
American Express periodically releases Amex Trendex, a trend report covering a slew of financial services topics. Its recently released Amex Trendex: 2021 Digital Payments Edition offers new data highlighting the trending topics in digital payments. Two of the trends addressed in the report are Buy Now, Pay Later (BNPL) and peer-to-peer (P2P) payments.
Buy Now, Pay Later is one of the hottest digital payment trends in the industry. BNPL is a short-term lending option that enables consumers to make purchases without paying the entire cost upfront. Instead, they pay off the balance off in interest-free installments over a set period of time. The perk of these payments being interest-free generally only applies if customers make all their payments on time. Missing or being late on payments can result in customers acquiring interest or late fees for the purchase.