4 Buy Now, Pay Later Trends Smart Investors Are Watching For in 2022
Buy now, pay later (BNPL) loans have exploded in popularity in recent years. As more young adults turn to these financing options, companies such as Affirm (NASDAQ: AFRM), Afterpay (OTC: AFTP.F), and Klarna have seen revenue growth accelerate.
Investors should expect the industry to continue growing rapidly. However, there are other factors you'll want to pay attention to, including increased scrutiny from regulators, as well as consumer credit-scoring companies paying more attention to these types of lenders. You'll want to take a wait-and-see approach on BNPL companies as more competitors enter the space, too. Here are four trends smart investors should keep an eye on as we enter 2022.
The growing popularity of BNPL options is especially strong among millennials and Gen Z. According to a survey by NerdWallet, 1-in-5 shoppers used BNPL options in 2021, with 22% of those surveyed being Gen Z customers.
Source Fool.com
