Home Technology Buy Now Pay Later Market Size, Share and Forecast to 2031

Buy Now Pay Later Market

Buy Now Pay Later Market Size, Share & Trends Analysis Report By Solution (Software, Services), By Enterprise Size (Small & Medium Enterprises, Large Enterprises), By Gender (Male, Female), By Demographic (Under 18 years, 18-45 years, Above 45 years), By End Use Industry (BFSI, Retail & eCommerce, Healthcare, Media & Entertainment, Travel & Tourism, Automotive, Others) and By Region(North America, Europe, APAC, Middle East and Africa, LATAM) Forecasts, 2023-2031

Report Code: SRTE1856DR
Study Period 2019-2031 CAGR 30.5%
Historical Period 2019-2021 Forecast Period 2023-2031
Base Year 2022 Base Year Market Size USD 256.54 Billion
Forecast Year 2031 Forecast Year Market Size USD 3892.19 Billion
Largest Market North America Fastest Growing Market Asia Pacific

Market Overview

The global buy now pay later market size was worth USD 256.54 billion in 2022 and is estimated to reach an expected value of USD 3892.19 billion by 2031 at a CAGR of 30.5% during the forecast period (2023-2031). 

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.

According to Bank of America Corp., the market for these BNPL payment apps is expected to grow 10-15 times by 2025. More customers are using BNPL to make both offline and online transactions. Many retailers emphasize accepting these point-of-sale and online installment loans as payment choices, creating new business opportunities for BNPL solution providers. The market is expected to be driven throughout the projected period by the developing e-commerce industry.

Market Dynamics

Global Buy Now Pay Later Market Drivers

  • Rise in Adoption of Online Payment Method  

Over the past decade, there has been a notable increase in the use of online payment methods. This shift is driven by factors such as convenience, evolving consumer behavior, financial flexibility, competitive interest rates, seamless integration with e-commerce platforms, enhanced security measures, effective marketing strategies, and the preferences of younger generations. This increased adoption of online payment methods, including BNPL services, reshapes how consumers make payments and manage their finances. It is likely to continue influencing the financial landscape in the future.

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 worldwide rise of e-commerce sales has produced a sizable window of opportunity for the market to expand throughout the projected period.

  • 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.

  • Adoption of the Buy Now, Pay Later Payment Method in Online Shopping

The easiest and quickest method of financing is known as "buy now, pay later." The registration procedure runs smoothly. Most Japanese e-commerce sites conveniently offer it at the point of purchase. By collaborating with Buy now pay later platforms, e-commerce businesses can provide customers with the Buy now pay later (BNPL) payment option. The purchase now pays later platform charges e-commerce platforms a commission fee ranging from 2% to 7% on the sale of merchandise.

Additionally, startup companies like Paidy, a buy now pay later (BNPL) company, have partnered with several businesses, including CROOZ SHOP LIST, Tansu Gen (Tans Gen Main Store), la belle vie Inc. (GLADD Inc.), and others to offer their post-payment service, a BNPL payment method, allowing customers to use Paidy's post-payment service when buying goods.

Regional Analysis

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

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.

It is expected that the Middle East and Africa will have significant growth during the predicted period. This is mainly related to growing consumer online purchasing patterns and a rise in the adoption of digital payments by citizens of the nation.

Report Scope

Report Metric Details
Segmentations
By Solution
  1. Software
  2. Services
By Enterprise Size
  1. Small & Medium Enterprises
  2. Large Enterprises
By Gender
  1. Male
  2. Female
By Demographic
  1. Under 18 years
  2. 18-45 years
  3. Above 45 years
By End Use Industry
  1. BFSI
  2. Retail & eCommerce
  3. Healthcare
  4. Media & Entertainment
  5. Travel & Tourism
  6. Automotive
  7. Others
Company Profiles Affirm Holdings Inc Afterpay Amazon Atom Clearpay Zip Co Ltd Flipkart Grab Pay later Hoola Klarna Bank AB LatitudePay Mastercard Monzo Openpay Pace Laybuy Group Holdings Limited PayPal Holdings Inc. Perpay Quadpay Rely Revolut Sezzle Splitit Visa Others
Geographies Covered
North America U.S. Canada
Europe U.K. Germany France Spain Italy Russia Nordic Benelux Rest of Europe
APAC China Korea Japan India Australia Taiwan South East Asia Rest of Asia-Pacific
Middle East and Africa UAE Turkey Saudi Arabia South Africa Egypt Nigeria Rest of MEA
LATAM Brazil Mexico Argentina Chile Colombia Rest of LATAM
Report Coverage Revenue Forecast, Competitive Landscape, Growth Factors, Environment & Regulatory Landscape and Trends
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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 2022 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.

Market Size By Solution

Recent Developments

  • In November 2022, Canada Got Affirm's Flexible Payment Options From Newegg.
  • In December 2022, To surprise consumers at Westfield London, Boots and Clearpay, the industry leader in Buy Now, Pay Later, have partnered to open the ultimate holiday immersive beauty pop-up.
  • In November 2022, Expedia Group and Afterpay collaborated to provide millions of U.S. travelers with flexible spending.
  • In December 2022, Grab's "buy now, pay later" (BNPL) feature PayLater was updated by adding the ability to pay for in-store purchases. With this addition, customers have more options for spreading out their payments.

Buy Now Pay Later Market Share of Key Players

Affirm Holdings Inc Afterpay Amazon Atom Clearpay Zip Co Ltd Flipkart Grab Pay later Hoola Klarna Bank AB LatitudePay Mastercard Monzo Openpay Pace Laybuy Group Holdings Limited PayPal Holdings Inc. Perpay Quadpay Rely Revolut Sezzle Splitit Visa Others

Frequently Asked Questions (FAQs)

What is the growth rate for the Buy Now Pay Later Market?
Buy Now Pay Later Market size will grow at approx. CAGR of 30.5% during the forecast period.
Some of the top industry players in Buy Now Pay Later Market are, Affirm Holdings Inc, Afterpay, Amazon, Atom, Clearpay, Flipkart, Grab Pay later, Hoola, Klarna Bank AB, LatitudePay, Mastercard, Monzo, Openpay, Pace, Laybuy Group Holdings Limited, PayPal Holdings Inc., Payl8r (Social Money Ltd.), Perpay, Quadpay, Rely, Revolut, Sezzle, Splitit, LatitudePay, Visa, etc.
North America has held a dominant position in the Buy Now Pay Later Market, with the largest market share.
The Asia Pacific region has experienced the highest growth rate in the Buy Now Pay Later Market.
The global Buy Now Pay Later Market report is segmented as follows: By Channel, By Application, By Enterprise Size


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