The Buy Now, Pay Later (BNPL) sector will surpass $1 trillion by 2030, according to new research by GlobalData.

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

The research suggests that Apple, Google, Mastercard, PayPal, and Visa would be the sector’s leading players by 2030.

“BigTech and large payment providers can seamlessly incorporate BNPL into their platforms whether they’re profitable or not, forcing FinTechs with unsustainable revenue models out of the market,” said Maddy Irwin, thematic analyst at GlobalData.

Irwin added: “For Visa and Apple, BNPL does not need to be profitable and is merely an incentive to keep existing customers in their ecosystems.”

The report also noted that part of the reason that the BNPL sector has been able to grow rapidly is due to a lack of regulation. It also found that the Covid-19 pandemic and cost-of-living crisis were significant factors in its rise to prominence.

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