The rapid global growth of buy now pay later (BNPL) services is making a strong case within Islamic finance (IF), with numerous fintech firms establishing their operations and actively marketing their interest-free unsecured credit to consumers. These firms are focused on aligning their services with local regions’ ethical values, Shariah compliance principles and providing a marketable alternative to their traditional counterparts. The increase in volume and velocity of BNPL transactions has prompted regulator attention and the need for consumer protection.

This paper shares insights on BNPL today and explores the opportunities for BNPL within an Islamic finance context, and features: 

- An overview of BNPL and its market growth 
- The key BNPL players today 
- The key Islamic finance BNPLs 
- What an Islamic BNPL proposition would look like 
- Key challenges for IF and BNPL 
- Different ways BNPL can be implemented in an IF context
- How IF BNPLs offerings compare fee-wise with other BNPLs 
- Key markets for Islamic finance. 

Contact us to discover how we are working with financial services firms to capitalize on new consumer payments trends.  

Mohsin Khan, Principal Consultant
Islamic Finance Capability Lead
Mohsin.Khan@capco.com

Ian Hooper, Partner
Head of Banking & Payments
Ian.Hooper@capco.com

Tej Patel, Partner
Regulatory Practice Lead
Tej.Patel@capco.com