BNPL Overtakes Traditional Loans in Popularity Among Czech Shoppers

Several factors are behind this development. On one hand, it’s the current economic situation, which makes people more carefully plan larger expenses. The rapid emergence of fintech solutions in retail also contributes. From the customer’s perspective, simplicity and the ability to flexibly manage their finances are crucial.

In Europe over the past three years, the BNPL market has grown very dynamically – more than one-fifth annually.

Forecasts until 2030 expect a more moderate pace, approximately 9% annually, but it’s still one of the fastest-growing segments in payments.

Customers have embraced BNPL mainly because it allows obtaining goods immediately while spreading costs according to their own capabilities. “BNPL services are growing year-on-year in the hundreds of percent. Just during the recent summer months, we recorded a year-on-year increase of approximately 300%, which shows this model has found a solid place in the Czech environment,” says Valdemar Schubert, manager of financial services and installments at Datart.

Digital Wallets and New Payment Forms

Besides BNPL, the use of digital wallets and contactless technologies is also growing. Customers increasingly pay using smartphones, watches, or other wearable devices. “Technology removes barriers – customers no longer need a plastic card in their wallet, a device they carry every day is enough,” Schubert adds.

The trend is complemented by QR payments, which have proven successful with customers thanks to their simplicity and lower risk of errors when entering data. In practice, this means faster transaction completion and fewer abandoned purchases, which is crucial for e-shops.

Looking ahead, a more significant emergence of A2A payments (Account-to-Account) is expected – instant transfers directly between bank accounts. This model could compete with card schemes in the long term, as it eliminates intermediaries and reduces transaction costs. Merchants would benefit from lower costs and faster processing. Customers would not lose the convenience they’re accustomed to with contactless payments.

Shift Toward Digital Comfort

Customer payment habits are changing rapidly and creating pressure on banks and merchants to expand their offerings beyond traditional cards or loans. Customers no longer compare just price or delivery speed, but also what payment flexibility the e-shop offers. BNPL and new digital methods are thus becoming part of the competitive battle.

While BNPL services confirm growing customer demand for flexibility in smaller purchases, native installments integrated directly into payment gateways come into play for larger investments.