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Buy Now Pay Later Market

Buy Now Pay Later Market: Information by Channel Outlook (Online, PoS), Application (Retail Goods, Healthcare and Wellness), Enterprise Size (Large, SME), and Region – Forecast till 2030

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Market Overview

The global buy now pay later market size was worth USD 132 billion in 2021 and is estimated to reach an expected value of USD 3680 billion by 2030 at a CAGR of 45% during the forecast period (2022-2030). 

Buy Now Pay Later (BNPL) is a payment option allowing customers to make purchases online and at stores without paying the total amount upfront. A short-term financing option called "buy now, pay later" enables people to acquire items they need daily, such as clothing, electronics, and home improvement supplies. Customers can purchase products and manage reimbursement through a point of sale (PoS) installment loan method.

Retailers increasingly provide "buy now, pay later" options that let customers buy the necessities of life by selecting a reasonable financing option and paying overtime rather than all at once. The use of the purchase now pay later payment platform by numerous business owners worldwide to finance massive equipment, buy raw materials, and pay staff salaries is what fuels the international expansion of the market. In addition, more young people are utilizing the purchase now pay later payment method since it has various advantages over other payment methods, including the ability to pay for expensive items like laptops and smartphones as well as school supplies and cafeteria bills.

Market Snapshot

market snapshot
Base Year
: 2021
Study Period
: 2020-2030
: 45 %
Fastest Growing Market
: Asia Pacific
Largest Market
: North America
Market Size
: 3680
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Market Dynamics

Global Buy Now Pay Later Market Drivers

  • Rise in Adoption of Online Payment Method  

The upsurge in the global point-of-sale installment loans market has been fueled by the rising popularity of online payment across various sectors, including banking, health insurance, retail & consumer goods, and others. The United Nations Conference on Trade and Development (UNCTAD) estimates that by 2020, more than 80% of customers worldwide will have made online purchases using digital wallets. Additionally, there was a considerable demand for BNPL services in 2021 due to the global rise in e-commerce sales. The Census Government Organization estimates retail e-commerce sales in the United States were USD 205 billion in the third quarter of 2021.

Additionally, research from the United Nations Conference on Trade and Development (UNCTAD) states that by 2020, retail sales will have increased from 16 to 19 percent globally, bringing the total value of global e-commerce through online platforms to USD 26.7 trillion. The worldwide rise of e-commerce sales has produced a sizable window of opportunity for the market to expand throughout the projected period.

Additionally, the growth is supported by growing awareness of consumer electronics products and health insurance services. The Reserve Bank of Australia estimates that in 2020, the value of the buy now, pay later service transactions for purchasing goods in New Zealand and Australia was close to USD 10 billion. Because of an increase in demand for consumer electronics products and health insurance services, the value of BNPL services transactions is rising quickly.

  • Rising Integration of Artificial Intelligence (A.I.) Technology 

Machine learning and artificial intelligence (A.I.) technology help service providers build models in real-time and enhance decision-making capabilities. Several market participants are creating specialized AI-based models to hasten consumer market penetration. For instance, the banking software company Temenos introduced an AI-based BNPL banking service within the Temenos Banking Cloud platform in January 2022. The platform offers chances through alternative credit solutions for customers and merchants and is built on artificial intelligence (A.I.) technology. The global market trend will be fueled by the growing use of A.I. technology to enhance the real-time consumer base.

Global Buy Now Pay Later Market Restraint

  • Lack of Awareness of Service and High Availability of Multiple Payment Options 

There are numerous additional choices, including postdated checks, credit cards, debit card financing, etc. Consumers and retailers in several emerging nations, including India, Brazil, Asia, and others, are unaware of the BNPL service. Before offering customers BNPL services, credit scores must also be checked.

The service offers users simple monthly installment payment plans through BNPL. The availability of numerous payment choices and the lack of understanding among consumers, retailers, and merchants impede overall growth.

Global Buy Now Pay Later Market Opportunities

  • Buy Now, Pay Later Platforms' Cost-Effective and Practical Payment Service

The buy now pay later payment method provides individuals with several advantages, including affordable and practical payment services, fast credit card fund transfers at the point of sale platform, and increased personal information security, all of which contribute to the market's expansion. Additionally, the purchase now pay later platform supports a QR-code option that enables users to pay with a scannable code and to complete transactions via UPI, both of which contribute to the market's expansion. Additionally, the buy now pay later platform helps customers make secure payments without using a debit card, promoting global market expansion.

Additionally, the purchase now pay later platform offers significant advantages that help customers improve their credit scores, monitor transaction data digitally, and be reminded about payback, all of which help the market expand globally. Due to a gain in revenue by selling lower-priced goods at a higher rate and providing an installment repayment option, retailers and merchants are broadly utilizing the purchase now pay later payment technology platform. These benefits that the buy now platform offers to customers and merchants fuel the market's expansion on a global scale.

Segmental Analysis

The global buy now pay later market share is segmented by channels, application, enterprise size, and region.

Based on channels, the global buy now pay later market has been bifurcated into online and Point-of-Sale (PoS). The online channel segment dominated the market in 2021 and accounted for the largest share of more than 64.0% of the global revenue. As part of their post-pandemic revival strategies, numerous companies worldwide are forming partnerships to concentrate on the adoption of the fastest-growing online payment options, like buy now, pay later. For instance, Uplift, Inc., a provider of BNPL solutions, declared its relationship with Tripster, a one-stop website for booking travel, in August 2021. Customers of Tripster will be able to conveniently arrange their complete trip in one location and pay with the uplift in surprise-free monthly installments.

 The PoS channel is the fastest growing segment over the forecast period. To improve customer satisfaction and solidify their relationships with clients, several firms are concentrating on offering PoSBNPL financing solutions. Additionally, companies provide customers with explicit PoS installment lending schemes that are loyalty-driven. As a result, companies are seeing higher percentages of recurring customers.

By application, the global buy now pay later market has been bifurcated into retail goods, media and entertainment, healthcare and wellness, automotive, home improvement, and others. Due to a growth in consumer spending on everyday necessities at retail outlets via the "buy now, pay later" model, the retail goods segment accounted for the most significant market share.

However, the healthcare and wellness segment is anticipated to expand fastest throughout the forecast period due to the rising costs of treating several serious illnesses, including chronic heart disease, cancer, and cardiovascular disorders. Additionally, people are embracing buy now pay later services due to the rapid spread of COVID-19 patients worldwide and the rise in demand for this disease's treatments. This is anticipated to create a lucrative opportunity for buy now pay later platforms in the healthcare sector.

Based on enterprise sizes, the global market has been further categorized into Small & Medium Enterprises (SMEs) and large enterprises. With more than 61.0 percent of the global revenue share, the significant enterprise segment led the market in 2021. Large businesses widely adopt BNPL payment systems because they give clients a convenient and reasonable way to pay for expensive goods. Customers can buy more things thanks to the convenience of shopping, which boosts sales. As a result, BNPL assists large businesses in dramatically enhancing the client experience.

Small and medium-sized businesses worldwide are concentrating on implementing BNPL solutions to aid retailers in raising sales conversion rates. For instance, the startup company Dukaan announced a partnership with Simpl, a provider of BNPL solutions, to offer BNPL services to Dukaan's merchants. Dukaan assists SMEs in setting up online stores. Small and medium-sized businesses put a lot of effort into expanding their clientele and solidifying their market position. As a result, it is anticipated that SMEs will embrace more BNPL solutions, supporting the segment's growth.

Regional Analysis

By region, the global buy now pay later market share is segmented into North America, Europe, Asia Pacific, and LAMEA.

In 2021, North America dominated the market and brought in the most money, with a share of about 30.0 percent of global sales. Numerous notable firms are the primary cause of the regional market expansion. Additionally, many fintech businesses in this area collaborate with entertainment businesses to provide BNPL services for booking hotels. For instance, in September 2021, American theme park and entertainment corporation SeaWorld Parks & Entertainment, Inc., teamed with Uplift, Inc., a developer of BNPL solutions. Utilizing this collaboration, Uplift, Inc. provided its BNPL payment options for SeaWorld San Antonio, SeaWorld Orlando, and SeaWorld San Diego hotel reservations.

The highest CAGR is anticipated for the Asia Pacific area during the projection period. This is primarily attributable to the growing acceptance of electronic payments like PayPal, Amazon Pay, and Google Play. Due to these online payment options, there is a massive demand for the service. A record-breaking market opportunity has been generated for significant players due to the growing use of online e-commerce applications.

Due to the rapid adoption of the services among online shoppers, Europe is the third-largest region. The buy now, pay later fintech industry, which includes companies like Afterpay, Klarna, Affirm, and others, is growing at a rate of 39% yearly in the United Kingdom, according to the World Pay study. Several major companies are also extending their service offerings across Europe, including France, Germany, the United Kingdom, and many more. For instance, PayPal introduced its Pay in 30 Days buy now, pay later service in Germany in January 2022. Users of the service can spend up to USD 1,115.0 in 30 days without additional fees.

Buy Now Pay Later Market Regional Analysis
Regional Growth Insights Download Free Sample

Top Key Players of Buy Now Pay Later Market

List of Top Global Buy Now Pay Later Market Companies

  1. Affirm Holdings Inc
  2. Afterpay
  3. Amazon
  4. Atom
  5. Clearpay
  6. Flipkart
  7. Grab Pay later
  8. Hoola
  9. Klarna Bank AB
  10. LatitudePay
  11. Mastercard
  12. Monzo
  13. Openpay
  14. Pace
  15. Laybuy Group Holdings Limited
  16. PayPal Holdings Inc.
  17. Payl8r (Social Money Ltd.)
  18. Perpay
  19. Quadpay
  20. Rely
  21. Revolut
  22. Sezzle
  23. Splitit
  24. LatitudePay
  25. Visa

Report Scope

Report Metric Details
CAGR 45%
Forecast Period 2023-2031
Report Coverage Revenue Forecast, Competitive Landscape, Growth Factors, Environment & Regulatory Landscape and Trends
Segments Covered
  1. By Channel
    1. Online
    2. PoS
  2. By Application
    1. Retail Goods
    2. Media & Entertainment
    3. Healthcare & Wellness
    4. Automotive
    5. Home Improvement
    6. Others
  3. By Enterprise Size
    1. Large Enterprises
    2. Small & Medium Enterprises
Geographies Covered
  • North America
  • Europe
  • APAC
  • Middle East and Africa

Recent Developments

  • June 2022 - To better fulfill the regular funding requirements of small business owners, PayPal Holdings Inc. announced it is adding a new business credit card to its portfolio of credit services. The first business credit card available through PayPal is the PayPal Business Cashback Mastercard, issued by WebBank and supported by the Mastercard network. The card has no annual fee and offers 2% cashback on all transactions with no restrictions on how much money can be earned or expiration dates, making it one of the best cashback rewards options.
  • June 2022 - The latest buy-now, the pay-later product from WebBank, PayPal Pay Monthly1, was unveiled by PayPal Holdings, Inc. It allows American consumers to spread payments out over more extended periods. Customers will now have access to a new PayPal product through Pay Monthly, which gives them more flexibility and payment options for the goods they want and need.

Buy Now Pay Later Market Segmentation

By Channel

  • Online
  • PoS

By Application

  • Retail Goods
  • Media & Entertainment
  • Healthcare & Wellness
  • Automotive
  • Home Improvement
  • Others

By Enterprise Size

  • Large Enterprises
  • Small & Medium Enterprises

By Region

  • North America
  • Europe
  • Asia Pacific
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