BNPL has become a strong alternative to credit cards, offering consumers a painless way to buy on credit.
Once heard of only in e-commerce, Buy Now, Pay Later, or BNPL for short, has grown to become a payment solution across health, travel, education, and finance, with an increasing number of providers and users across the world.
In a survey, Global Data reported that the global BNPL market, valued at 120 billion USD in 2021, may hit over 500 billion USD by 2025.
The convenience of splitting payments over a period, without any cut-throat m interest rates, is the main attraction for customers. And businesses are exploring this flexible payment strategy to increase sales.
As more financial institutions, corporate businesses, and fintech companies hop on the BNPL bandwagon, let’s review four top technologies promoting BNPL growth in 2025.
Four Tech Trends Encouraging BNPL Growth in 2025
1—Artificial Intelligence (AI)
AI is at the forefront of the Buy Now, Pay Later model’s growth. The key role of artificial intelligence in BNPL systems is to reduce the risk of default on payments.
It achieves this by accessing customers’ data to match income against spending patterns, and auto-generate tailored payment plans that fit each user's financial status.
Leading BNPL providers, like Afterpay and our Timvero, use AI to assess customers’ credit risks. They analyze users’ money habits to predict the likelihood of repaying, if offered credit.
Also, AI-powered chatbots improve engagement between BNPL providers and consumers. These bots offer real-time customer support, providing instant responses to frequently asked questions related to payments and account management.
With AI features, BNPL providers can deliver more personalized services to increase customer satisfaction and brand loyalty.
2—Biometric Authentication
Biometric authentication is becoming a non-negotiable security strategy for BNPL providers.
Biometrics is used to capture and verify buyers’ identities without having them fill lengthy forms or submit a list of documentation.
This model captures a person’s identity using their physical, biological, or behavioral attributes, such as fingerprints and facial scans. Unlike passwords, each person’s biometric data is unique and cannot be lost or forged.
Once a user’s biometric data is captured, they’ll only require a quick scan for future verification or authentication—no passwords needed.
Companies like Sezzle use biometrics, including facial recognition, fingerprint scanning, and voice recognition, to verify BNPL users' identities and secure their transactions.
Some other top BNPL providers, like Afterpay, use facial recognition to verify customers’ ID during checkout, reducing the risk of fraudulent transactions.
For Klarna, they request BNPL users’ fingerprints to authenticate transactions.
Biometrics is a simple yet highly effective way to keep transactions safe.
3—Blockchain
Blockchain technology adds an extra layer of security and transparency to BNPL transactions. While biometrics authenticate a buyer's identity, blockchain creates permanent records of each payment process.
Given the transparent nature of blockchain technology, BNPL businesses can track and record transactions as they occur. This leaves an audit trail that reduces the risk of compliance issues and legal disputes, especially for businesses in highly regulated markets, such as financial service providers.
Zip Co is one of many BNPL providers using blockchain. The renowned Australian-based vendor has partnered with the blockchain platform, Power Ledger, to integrate blockchain into its payment procedures.
By this collaboration, Zip Co now boasts extra security and transparency on all transactions, as blockchain verifies and records all payments.
As the blockchain technology evolves, the coming days will see more BNPL providers partnering with blockchain platforms to promote transparency and double security in their payment ecosystems.
4—Open Banking
Open banking secures data sharing between banks and third-party service providers.
The technology allows BNPL companies to access customers’ credit scores, spending patterns, and overall financial health. These real-time insights inform BNPL providers on the best credit decisions to make.
With open banking, BNPL providers can score customers' creditworthiness more accurately. This way, providers save everyone the troubles associated with offering credit to high-risk individuals.
By accessing customers’ real-time financial records, companies can offer tailored credit limits and payment plans that befits each user's financial reality.
In addition to weighing buyers’ credit risks, open banking prevents fake identities. It allows the BNPL systems link directly to customers' bank accounts, authorizing payments instantly and securely.
Swedish-based Klarna and UK-based Clearpay are top BNPL players leveraging open banking for secure data sharing and fast, painless payment authorizations.
With these benefits, it’s only expected that more BNPL providers will incorporate open banking into their platforms, boosting customers' confidence in their payment procedures.
What Does the Future Hold for the BNPL Model?
The future of BNPL looks promising, with these emerging technologies driving the safety and ease of using this innovative credit system.
A 2024 survey by PYMNTS shows that nearly half of the Gen Z population and millennials have used the BNPL payment option in the past year. With the growing acceptance among the younger demographics, BNPL seems the next future of credit purchases, and may phase out credit cards anytime soon.
Looking beyond 2025, BNPL providers will likely see increased adoption of AI for smart risk assessment, more reliance on biometrics for fraud prevention, continuous use of blockchain for transparency, and continued integration of open banking to ease payment processes.
Businesses that embrace these advancements will be better positioned to compete in the volatile payments sector.
TIMVERO is a leading provider of loan management systems. Our custom BNPL solutions offer financial institutions a secure, easy, and transparent way to process deferred payment.
