As consumer cashflow reduces, we will not only see a surge in the use of credit and products like Buy Now, Pay Later (BNPL), but we’ll also see new industries adopting subscription models. Consumers will have the option to spread the cost of products and services for everything from fresh groceries to car subscriptions inclusive of embedded insurance and maintenance services.
However, although BNPL will continue to be popular, it will come under pressure due to fluctuating interest rates. As a result, the B2B sector will see a boost in cash advance and other models to help businesses. Beyond BNPL and subscription models, more businesses will move into the FX and money movement space and embedded models will increase – a development that will require complicated B2B2C and C2B2B models.