The local advantage: How Europe’s BNPL solutions are driving e-commerce growth
- Buy Now, Pay Later: An opportunity that’s too good to miss
- The rise of local BNPL options
- Introducing ‘Buy Now Pay Local’ by PPRO
For businesses and Payment Service Providers (PSPs), capitalising on BNPL’s growing influence means offering consumers the convenience and financial flexibility they expect from trusted, local BNPL providers. By enabling customers to split payments into affordable instalments, merchants can boost conversions and cart sizes while getting paid upfront.
Buy Now, Pay Later: An opportunity that’s too good to miss
BNPL is big business: the Buy Now, Pay Later market is predicted to grow by nearly 70% between 2024 and 2030. What started as a way for consumers to manage the cost of big-ticket items with flexible, often interest-free payments has now become common practice for everyday purchases, from clothing to groceries. Research has shown that 68% of Europeans use instalment or deferred payments at least occasionally, and in 2024, BNPL accounted for 8% of Europe’s e-commerce transaction value, up from 1% in 2014.
BNPL solutions are most popular among Gen Z and Millennial consumers, but adoption is growing among older generations too. In the UK, 40% of Gen X and 20% of Baby Boomers have used the payment method. A recent report found that BNPL adoption was rapidly increasing among UK adults aged 55 to 64, with the proportion of users more than doubling from 10% in 2023 to 21% in 2024. Overall, more than one in ten UK adults aged 65 and above were reported to use BNPL, with the convenience, budgeting benefits, and zero-interest instalments creating an attractive payment option for shoppers of all ages.
While BNPL use is increasing across Europe, adoption isn’t necessarily even. In Germany, BNPL payments account for 20% of e-commerce transaction volume; in Norway, this figure is 18% and in Finland, it is 16%. In contrast, BNPL payments currently account for around 5% of e-commerce transaction value in the UK and Ireland.
With BNPL now a key part of the checkout experience for many shoppers, merchants and PSPs need to consider how to provide the most suitable options for the markets they’re entering.
The rise of local BNPL options
As the BNPL market matures, the number of BNPL service providers is growing. There are now more than 200 companies offering instalment loans worldwide, including a range of highly localised options. These local BNPL solutions are gaining market share from global giants and are not just restricted to fintechs.
Local schemes and banks are integrating instalment payments into their existing platforms, offering consumers BNPL through familiar, convenient and trusted channels. A trend set to continue as financial ecosystems and the BNPL market continue to evolve globally.
Local BNPL options are usually more aligned with regional cultural norms and regulatory requirements, which helps foster trust between merchants and consumers. Familiarity is essential in e-commerce: one in five consumers will abandon their purchase if their preferred payment method isn’t offered. For merchants, offering a local BNPL solution could mean the difference between a completed checkout and an abandoned payment.
Examples of local BNPL providers include France’s FLOA Pay, Italy’s Scalapay, and Poland’s BLIK Pay Later. These solutions offer huge reach: BLIK (the payments company behind BLIK Pay Later) processed 2.4 billion transactions in 2024, and Scalapay, Italy’s first unicorn, works with more than 8,000 partner brands.
Merchants and PSPs wishing to tap into the BNPL market can’t afford to ignore these local options. Relying solely on major global BNPL solutions risks overlooking regional preferences, preventing businesses from successfully expanding into markets dominated by local providers.
Introducing ‘Buy Now Pay Local’ by PPRO
Capturing the potential of Europe’s booming BNPL market means offering customers truly local BNPL payment methods. But activating, accepting and managing the local options consumers desire across various markets can be complex.
PPRO’s all-new Buy Now Pay Local solution provides instant access to Europe’s fast-growing BNPL options — including FLOA Pay, Scalapay, and BLIK Pay Later — through one integration. By leading the way in offering broad European coverage of local BNPL solutions via a single, seamless connection, we’re delivering affordable checkouts for customers and higher cart values for merchants.
Buy Now Pay Local gives you:
- Europe-wide coverage with a curated portfolio of locally relevant, high-growth BNPL methods.
- The ability to boost conversions and average order value, driving higher sales and repeat business by adding local BNPL options at checkout.
- A localised payment experience that provides consumers with familiar payment options they know and trust.
- A launchpad to build once and scale continuously with instant entry to new markets via a single integration.
- Access to unique market insights with PPRO’s deep local knowledge and partnerships.
