Buy Now Pay Later (BNPL) Market Size - By Enterprise Size (Small and Medium Enterprises (SMEs), Large Enterprises), Channel (Point of Sale (POS), Offline), End Use (Retail, Healthcare, Leisure & Entertainment, Automotive), Customer & Forecast, 2024 - 2032

Published Date: July - 2024 | Publisher: MRA | No of Pages: 240 | Industry: Professional-Services | Format: Report available in PDF / Excel Format

View Details Buy Now 2890 Download Sample Ask for Discount Request Customization

Buy Now Pay Later (BNPL) Market Size - By Enterprise Size (Small and Medium Enterprises (SMEs), Large Enterprises), Channel (Point of Sale (POS), Offline), End Use (Retail, Healthcare, Leisure & Entertainment, Automotive), Customer & Forecast, 2024 - 2032

Buy Now Pay Later Market Size

Buy Now Pay Later Market size was valued at USD 378.3 billion in 2023 and is expected to grow at a CAGR of over 40% between 2024 and 2032, driven by the consumer desire for flexible payment options. Consumers of today, especially Millennials and Generation Z, are looking for payment options that give them greater financial freedom and control. With BNPL services, customers can divide their purchases into smaller, more manageable instalments, in contrast to standard credit cards, which can have high interest rates and strict repayment plans.

To get key market trends

  Download Free Sample

When it comes to big-ticket items, "buy now, pay later" (BNPL) is a game-changer. Instead of forking out a lump sum that could break the bank, BNPL lets you spread out the payments, making those dream purchases more manageable. Plus, BNPL services are super easy to use. They usually have clear terms and minimal paperwork, so you won't have to get bogged down in confusing details. And with the rise of online shopping, BNPL options are popping up right at checkout, making it even easier to snag what you want without leaving a dent in your savings. As more and more people prefer flexible payment options like BNPL, the market for these services is booming. It's making shopping more convenient, reducing the number of people who abandon their carts at checkout, and boosting overall sales.

Buy Now Pay Later Market Report Attributes
Report Attribute Details
Base Year 2023
Buy Now Pay Later Market Size in 2023 USD 378.3 Billion
Forecast Period 2024 - 2032
Forecast Period 2024 - 2032 CAGR 40%
2032 Value Projection USD 8 Trillion
Historical Data for 2021 – 2023
No. of Pages 210
Tables, Charts & Figures 218
Segments covered Enterprise size, channel, end use, region
Growth Drivers
  • Increased consumer demand for flexible payment options
  • Low interest and fees compared to traditional credit
  • Partnership and integration with retailers
  • Changing consumer preferences
  • Increased merchant adoption
Pitfalls & Challenges
  • Consumer debt risk
  • Technological and security risks

What are the growth opportunities in this market?

 Download Free Sample

For instance, in March 2024, BNPL providers began marketing their services using a wider net. Millennials started using BNPL at a higher rate than other generations in 2024. Likewise, as a digital-savvy generation, millennials have also embraced digital payment solutions such as mobile wallets. Nearly 45 million millennials will use proximity mobile payments in 2024, more than any other generation.

Another significant factor propelling the market growth is the BNPL services' reduced fees and interest rates when compared to standard credit cards. Traditional credit cards frequently include high interest rates on revolving balances in addition to yearly fees and other unstated costs, which can cause users to accrue a sizable debt. On the other hand, a lot of BNPL providers either charge very little for their services or provide interest-free payment plans if the payments are made on time. This makes BNPL a desirable option for people who want to better manage their spending without paying high interest rates.

The attractiveness of BNPL services is further enhanced by their clear charge schedules and lack of additional expenses. Customers value BNPL's simplicity and dependability since it helps them avoid the financial pitfalls commonly associated with traditional credit products. This competitive edge in cost-efficiency is driving more consumers to opt for BNPL solutions, thereby fueling buy now pay later market growth.

A major risk for the BNPL business is consumer debt risk, which creates difficulties for both BNPL providers and customers. Customers may end up taking on more debt than they can handle due to the accessibility of BNPL products and the flexibility to make numerous purchases without immediately impacting their finances. People who are not well-versed in finance or do not completely comprehend the terms and circumstances of their BNPL agreements should be especially concerned about this.

Customers may face late fines and penalties if they are unable to make their instalment payments on time, which could make their financial condition worse. BNPL services, in contrast to traditional credit products, may not always require extensive credit checks, and hence it may be simpler for people with bad credit records or low incomes to obtain credit.

Buy Now Pay Later Market Trends

A prominent development in BNPL space is the increasing degree of integration with online shopping carts. With the exponential growth of online purchasing, BNPL services are increasingly being accepted as a form of payment at the point of sale. To provide smooth, integrated financing options, BNPL providers are collaborating with major e-commerce behemoths such as Amazon, Shopify, and other online retailers.

By offering a variety of payment alternatives, this integration not only improves the shopping experience but also assists retailers in decreasing cart abandonment and increasing conversion rates. When it comes to ease of use and instant availability at the point of sale, BNPL is a compelling choice for customers seeking interest-free financing without any hassles.

After becoming well-known in the retail industry, BNPL services are currently spreading to new markets, including home renovation, healthcare, travel, and education. By diversifying, BNPL suppliers can access new markets and sources of income. For instance, BNPL allows people to pay for medical procedures and treatments, increasing accessibility to healthcare. To meet the pent-up demand for travel following the epidemic, the travel industry also uses BNPL, which enables customers to plan trips and pay overtime.

In the same way, BNPL services assist parents and students in managing the price of tuition and other educational expenditures. This diversification into other industries demonstrates the adaptability and rising popularity of BNPL solutions in many market niches.

As the "buy now, pay later" (BNPL) market booms, regulators are stepping in to safeguard consumers from potential risks. They're rolling out rules to ensure that BNPL providers play fair and put customers first. These rules may demand that providersCheck customers' creditworthiness carefully Clearly explain the terms of their loans Prevent people from taking on too much debt These regulations are crucial to the future of the BNPL market. They'll make sure that providers protect consumers while allowing the industry to thrive.

Buy Now Pay Later Market Analysis

Learn more about the key segments shaping this market

 Download Free Sample

Based on enterprise size, the market is divided into Small and Medium Enterprises (SMEs) and large enterprises. The large enterprise segment is expected to register a CAGR of 45% during the forecast period.

  • Large farms can achieve efficient integration and promotion of BNPL services, utilizing their considerable resources and presence. These businesses often adopt BNPL solutions as they have a large consumer base and a significant online and physical presence.
  • Along with various payment options that appeal to a wide range of consumer types, big businesses can improve their value proposition by collaborating with BNPL suppliers. This results in increased sales volumes and higher average transaction, along with improved customer happiness and loyalty. When it comes to staying competitive in the ever-changing retail scene, large organizations use BNPL services as part of a larger plan to reinvent their payment systems.
  • Furthermore, major businesses can further optimize their integration of BNPL services by negotiating better conditions, such as lower transaction costs or unique features, with BNPL providers owing to their increased bargaining strength. Large companies' adoption of BNPL also creates a precedent in the market, inspiring smaller companies to do the same and fostering the expansion of the BNPL ecosystem as a whole.

Learn more about the key segments shaping this market

 Download Free Sample

Based on channel, the buy now pay later market is divided into Point of Sale (POS) and offline. The POS segment dominated the global market with a revenue of over USD 5 trillion in 2032.

  • The POS segment focuses on offering BNPL services right at the checkout in both brick-and-mortar stores and online venues. With instant financial relief and a higher chance of transaction completion, the integration of BNPL alternatives at the POS gives customers access to flexible payment plans, greatly improving their shopping experience.
  • Customers can divide their payments into reasonable instalments in physical locations without a credit card or a drawn-out application process owing to BNPL solutions at the POS. Customers may be more satisfied and loyal due to the flexibility and ease of completion of purchases. Higher-ticket items can be made more affordable for a wider spectrum of customers with BNPL choices, which benefits retailers by increasing sales and decreasing cart abandonment.
  • The ability of clients to select a BNPL plan at the checkout page can greatly lessen the friction and hesitancy that come with major or unforeseen costs. During the checkout process, when customers are most sensitive to price and payment flexibility, this seamless connection is especially enticing. Online shops can raise average order values, draw in more people, and improve conversion rates by providing BNPL solutions.

Looking for region specific data?

 Download Free Sample

North America dominated the global buy now pay later market in 2023, accounting for a share of over 30%. This region is seeing rapid expansion and widespread adoption of BNPL services, making it an attractive and dynamic market for BNPL providers.

Consumers in North America are looking for flexible payment options to better manage their money, particularly Millennials and Gen Z. The BNPL model has been widely adopted due to its interest-free installment plans and compatibility with these groups' financial inclinations. In addition, North America has one of the biggest and most developed e-commerce markets. The COVID-19 pandemic further spiked e-commerce, creating a favorable environment for BNPL services. Large regional businesses and e-commerce sites in the region have included BNPL options to improve customer experience, lower cart abandonment rates, and boost sales.

The BNPL market in the U.S. is expanding quickly due to the high demand from consumers for flexible payment choices. American customers are using BNPL services increasingly, especially the younger generation, to control their spending instead of paying exorbitant interest rates on traditional credit cards. The BNPL providers in the U.S. are utilizing advanced technologies to create smooth and easy-to-use experiences. Fintech innovations, such as safe payment processing and real-time credit assessments, fuel the adoption of BNPL services among customers.

For instance, in November 2023, the perception of inflation among American consumers started to improve, and their purchasing power gradually started to rise again. However, optimism notwithstanding, the financial well-being of consumers might not be as it looks. Furthermore, because of the use of BNPL, customers might be understating their debt. A true assessment of the outstanding debt of American consumers is challenging to compute because many BNPL lenders do not submit their data to credit reporting organizations.

Buy Now, Pay Later (BNPL) services are gaining steam in Japan, where consumers have traditionally been cautious about credit. These services offer flexible payment options that appeal to the convenience-seeking nature of Japanese shoppers. One major factor driving BNPL adoption in Japan is its integration with e-commerce platforms. To cater to tech-savvy customers, major online stores and marketplaces are embracing BNPL solutions, seeing them as a way to boost sales. Japan's advanced technology infrastructure has also paved the way for BNPL growth. Providers are leveraging cutting-edge technology to offer secure, convenient, and user-friendly payment options that align with the tech-savvy preferences of Japanese consumers.

In South Korea, people love tapping and swiping their way through life. They're crazy about digital payments, so it's no wonder they've embraced "Buy Now, Pay Later" (BNPL) services like it's the latest K-pop hit. Why? Well, South Koreans are pros at online shopping, so switching to BNPL was as easy as clicking a button. And the younger crowd, always looking for ways to live flexibly, has become the driving force behind BNPL's popularity. They'd rather pay in smaller chunks than swipe their credit cards. But as BNPL booms, South Korean authorities are keeping a watchful eye to protect consumers and keep the financial system stable. So, businesses offering these services need to follow the rules as they change. That's the key to staying ahead of the game and keeping customers smiling.

You know how China has a massive number of people who love technology? Well, they're really into a new way to pay called BNPL (Buy Now, Pay Later). It's like a credit card, but it's more digital and flexible. In China, BNPL is taking off like wildfire. You can use it to buy things online or in stores. Even bigwigs like Alibaba and JD.com, the giants of online shopping, are jumping on the BNPL bandwagon. They're adding BNPL options to their platforms to make shopping easier and more convenient for their customers. Plus, they're making more money from all the fees. But hold your horses! The Chinese government is keeping a close eye on this BNPL craze. They want to make sure people aren't getting into too much debt and that the whole financial system stays stable. This could mean some changes in the way BNPL works in China in the future.

In conclusion, the buy now pay later (BNPL) market is driven by consumer preferences, technology improvements, e-commerce integration, and regulatory environments, and is present in the U.S., Japan, South Korea, and China at different degrees of acceptance. With the goal of increasing their footprint and gaining market share, BNPL providers face different opportunities and difficulties in every location.

Buy Now Pay Later Market Share

Klarna Inc. & Afterpay Limited hold a significant share of over 35% in the BNPL industry. Klarna Inc.'s innovative consumer finance methodology and global reach have enabled the company to occupy a considerable stake in the market. Since its founding in Sweden in 2005, Klarna has grown quickly to become one of the leading providers of business-to-business loans, catering to millions of customers globally. The reason behind the company’s success is its easy-to-use platform, which provides a smooth and adaptable buying experience.

Customers have clear terms, no hidden costs, and the option to pay now, later, or in instalments. Klarna's acceptance and awareness have increased owing to its strategic relationships with large online and offline merchants. The company has gained a significant market share owing to its strong brand recognition, emphasis on client satisfaction, and creative financial solutions.

Similarly, Afterpay Limited has made a big impact in the BNPL space, especially in Australia, where it was founded, as well as in the U.S., the UK, and other foreign markets.

Offering interest-free installment plans is the foundation of Afterpay's business model, which was established in 2014 and makes it a desirable choice for customers looking to avoid the typical credit card interest rates and fees. The company has seen rapid development with a particular emphasis on the millennial and Gen Z groups, who are lured to the financial flexibility and simple repayment terms. Owing to its diverse range of retail alliances, the brand can be widely adopted at checkout points, both online and in real stores.

Buy Now Pay Later Market Companies

Major players operating in the BNPL industry are

  • Klarna Inc.
  • Afterpay Limited
  • Affirm Holdings Inc.
  • PayPal Holdings Inc.
  • Sezzle
  • Splitit Payments Ltd.
  • Zip Co, Ltd.

Buy Now Pay Later Industry News

  • In February 2022, CRED launched the CRED Flash application to enter the BNPL industry. Users of CRED Flash can pay using the app and across over 500 partner retailers, including Swiggy, Zepto, and Urban Company. Customers can pay their invoices for free within 30 days.
     
  • In September 2023, the fintech industry witnessed a significant transformation with the emergence of ‘Buy Now Pay Later (BNPL)’, a form of short-term financing that enables consumers to make immediate purchases and settle payments over a predetermined period. However, each BNPL program comes with distinct prerequisites that patrons must fulfil. In recent years, the landscape has shifted from catering solely to a specialized consumer segment to emerging as one of the foremost payment mechanisms, fueled by digitalization, e-commerce expansion, credit card rate hikes, and popularity among younger demographics.

The buy now pay later (BNPL) market research report includes in-depth coverage of the industry with estimates & forecasts in terms of revenue (USD Billion) from 2021 to 2032, for the following segments

Click here to Buy Section of this Report

 

 

Market, By Enterprise Size

 

  • Small and Medium enterprises (SMEs)
  • Large enterprises

Market, By Channel

  • Point of Sale (POS)
  • Offline

Market, By End Use

  • Retail
    • Consumer electronics
    • Fashion & garment
    • Others
  • Healthcare
  • Leisure & entertainment
  • Automotive
  • Others
    • Home improvement
    • Education

Market, By Customer

  • Gen Z (21-25)
  • Millennials (26-40)
  • Gen X (41-45)
  • Baby Boomers (56-75)

The above information is provided for the following regions and countries

  • North America
    • U.S.
    • Canada
  • Europe
    • Germany
    • UK
    • France
    • Italy
    • Spain
    • Rest of Europe
  • Asia Pacific
    • China
    • India
    • Japan
    • South Korea
    • ANZ
    • Rest of Asia Pacific
  • Latin America
    • Brazil
    • Mexico
    • Rest of Latin America
  • MEA
    • UAE
    • Saudi Arabia
    • South Africa
    • Rest of MEA

 

Related Reports

Table of Content

To get a detailed Table of content/ Table of Figures/ Methodology Please contact our sales person at ( chris@marketinsightsresearch.com )

List Tables Figures

To get a detailed Table of content/ Table of Figures/ Methodology Please contact our sales person at ( chris@marketinsightsresearch.com )

FAQ'S

For a single, multi and corporate client license, the report will be available in PDF format. Sample report would be given you in excel format. For more questions please contact:

sales@marketinsightsresearch.com

Within 24 to 48 hrs.

You can contact Sales team (sales@marketinsightsresearch.com) and they will direct you on email

You can order a report by selecting payment methods, which is bank wire or online payment through any Debit/Credit card, Razor pay or PayPal.

Discounts are available.

Hard Copy

Email