USD 4.86 billion
Global Buy Now Pay Later Market Size, Share, Growth Analysis, By Enterprise Size(Large, SME), By End Use(Consumer Electronics, Fashion & Garment), By Channel(Online, POS) - Industry Forecast 2024-2031
Report ID:
SQMIG45F2113 |
Region:
Global |
Published Date: February, 2024
Pages:
165
|
Tables:
91 |
Figures:
76
Global Buy Now Pay Later Market Insights
Buy Now Pay Later Market size was valued at USD 4.86 billion in 2019 and is poised to grow from USD 6.13 billion in 2023 to USD 49.41 billion by 2031, growing at a CAGR of 26.1% in the forecast period (2024-2031).
The global Buy Now Pay Later (BNPL) market has witnessed significant growth in recent years, driven by various factors such as convenience, flexibility, and the increasing preference for online shopping. PayPal, a leading digital payments platform, has emerged as a major player in this market, offering its own BNPL service called "PayPal Buy Now Pay Later". PayPal's BNPL service allows consumers to make purchases and spread the payments over time, eliminating the need for immediate upfront payments. With a seamless integration into the existing PayPal ecosystem, users can easily select the BNPL option at checkout and enjoy the flexibility of paying for their purchases in installments. In addition to traditional retail purchases, the BNPL trend has expanded to other sectors, including travel. Several online travel agencies now offer "Buy Now Pay Later flights," enabling customers to book their trips and pay for them in installments. This option provides travelers with more financial flexibility and allows them to manage their expenses effectively. One notable advantage of BNPL services is that they often do not require a credit check. This feature appeals to a broader customer base, including individuals with limited credit history or those who prefer not to undergo a credit assessment. By eliminating the credit check process, more people can access the benefits of BNPL and enjoy greater purchasing power.
US Buy Now Pay Later Market is poised to grow at a sustainable CAGR for the next forecast year.
Market snapshot - 2024-2031
Global Market Size
Largest Segment
Large
Fastest Growth
Large
Growth Rate
26.1% CAGR
Global Buy Now Pay Later Market ($ Bn)
Country Share for North America Region (%)
Global Buy Now Pay Later Market By Enterprise Size ($ Bn)
Global Buy Now Pay Later Market By Enterprise Size (%)
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Global Buy Now Pay Later Market Segmental Analysis
The Global Buy Now Pay Later Market is segmented by Enterprise Size, End-Use, and region. Based on Enterprise Size, the market can be segmented into Large, and SME. Based on End-Use, the market is segmented into Consumer Electronics, Fashion & Garment, Retail, Media, Entertainment, Others. Based on channel, the market is segmented into Online, and POS. Based on region, the market is segmented into North America, Europe, Asia Pacific, Middle East and Africa, and Latin America.
Buy Now Pay Later Market Analysis by enterprise size
By Enterprise Size, the market can be segmented into Large, and SME. The large enterprises segment dominated the buy now pay later market in 2021 and accounted for more than 61% of the global revenue share. BNPL payment systems are being widely adopted by large businesses because they give clients a convenient and reasonable way to pay for expensive goods. Customers can buy more products due to the ease 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 established a relationship 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 projected that SMEs will embrace more BNPL solutions, thereby supporting its growth.
Buy Now Pay Later Market Analysis by end use
By End-Use, the market can be segmented into Consumer Electronics, Fashion & Garment, Retail, Media, Entertainment, Others. With more than 43% of global revenue in 2021, the fashion and apparel sector held the largest market share of the buy now pay later industry. The industry is seeing a surge in the use of BNPL solutions since they make it simple for clients to spread out the expense of a purchase over a period of time with fixed, interest-free payments. For instance, BNPL solution provider Affirm, Inc. announced in October 2021 that it had partnered with customer clothing site Theory to provide clients with interest-free payments on accessories and sportswear. Such elements are encouraging for the segment's growth.
Consumer electronics usage and the growth of the digital economy are projected to open up a number of opportunities for major market players. BNPL payment mechanisms are becoming more widely used in the market as a low-friction alternative to credit cards. Customers also choose BNPL payment methods over credit cards because they avoid costly compound interest and hidden costs. Therefore, it is predicted that increased consumer electronic provider awareness of the flexible BNPL payment mechanism would fuel demand for these services.
Buy Now Pay Later Market Analysis by channel
In 2021, the buy now pay later market was led by the online channel, which brought in more than 64% of the total revenue. As part of their post-pandemic revival strategies, numerous companies all around the world are forming partnerships to concentrate on the adoption of the fastest-growing online payment options, like buy now pay later. For instance, in August 2021, Uplift, Inc., a BNPL solution provider, announced its partnership with Tripster, an all-in-one travel booking site. Tripster customers will be able to conveniently plan their entire trip in one place and pay with uplift in surprise-free monthly instalments.
Over the projected period, a considerable growth rate is projected for the PoS channel segment in the buy now pay later market. To improve customer satisfaction and solidify their relationships with clients, several firms are concentrating on offering PoS BNPL financing solutions. Additionally, companies provide customers with clear PoS instalment lending schemes that are loyalty-driven. As a result, companies are seeing higher percentages of recurring customers.
Global Buy Now Pay Later Market By Enterprise Size, 2023 (%)
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Global Buy Now Pay Later Market Regional Insights
North America has emerged as a prominent player in the BNPL market. With the presence of major players like PayPal, which offers its own BNPL service, the region has experienced a significant adoption of this payment option. The convenience and flexibility of BNPL have resonated well with consumers in North America, driving its dominance in the region.
On the other hand, the Asia-Pacific region has emerged as the fastest-growing region in the BNPL market. Countries like China, India, and Australia have witnessed a surge in the adoption of BNPL services, fueled by the increasing popularity of online shopping and the rise in digital payment solutions. The region's large consumer base, coupled with the growing e-commerce sector, has contributed to the rapid growth of BNPL in Asia-Pacific.
Global Buy Now Pay Later Market By Geography, 2024-2031
- Largest
- Fastest
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Global Buy Now Pay Later Market Dynamics
Buy Now Pay Later Market Driver
- Increase in adoption of online payment methods among people
According to the United Nations Conference on Trade and Development (UNCTAD), over 80% of customers worldwide use digital payments to conduct online shopping. The three most popular digital payment methods are mobile payments, debit cards, and credit cards. These methods have many advantages over traditional payment methods, including lower transaction costs, more efficient fund transfers, and higher payment security, all of which contribute to the growth of the buy now pay later market. High-speed internet accessibility, a spike in smartphone adoption, and increased public knowledge of digital payment services are some of the key reasons driving the uptake of online payment technologies. Additionally, the rise in smartphone usage and speedier connectivity have made it possible for merchants and customers to accept and make payments through digital platforms, which fueled the expansion of the buy now pay later market.
- Affordable and Convenient Service Payment
The buy now pay later payment method provides individuals with a number of 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 buy now pay later market's expansion. Additionally, the buy 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, which promotes market expansion globally. Other advantages provided by the buy now pay later platform that stimulate global market expansion include notifying customers about payback, enhancing their credit scores, and tracking transaction details online.
Buy Now Pay Later Market Challenge
- Lack of awareness of service and high availability of multiple payment options
Alternative payment methods, including post-dated checks, credit and debit card financing, and many others, are available. Consumers and retailers in a number of emerging nations, including India, Brazil, Asia, and others, are not aware of the BNPL service. Before offering customers BNPL services, credit scores must also be checked. The service offers users simple monthly instalment payment plans through BNPL. The availability of numerous payment choices and the lack of understanding among consumers, retailers, and merchants impede overall growth of the buy now pay later industry.
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Global Buy Now Pay Later Market Competitive Landscape
The buy now pay later market is moderately fragmented. Customers and retailers both benefit from BNPL. Leading suppliers are moving into the e-commerce ecosystem by increasing their footprints and attracting new clients. By 2025, the market for these BNPL payment apps is predicted to increase 10-15 times, according to Bank of America Corp. Customers are increasingly using BNPL to make purchases both in-person and online. A large number of merchants are emphasising the acceptance of these online instalment loans and point-of-sale loans as payment options, opening up new business potential for BNPL solution providers. Over the forecast period, the market is also predicted to be driven by the expanding e-commerce sector.
Buy Now Pay Later Market Top Players Company Profiles
- Afterpay Limited
- Affirm Holdings Inc.
- Klarna Bank AB
- Paypal
- Sezzle Inc.
- Zip Co Limited
- Splitit Payments Ltd.
- Laybuy Holdings Limited
- QuadPay, Inc.
- FuturePay Inc.
- Openpay Group Ltd.
- PayRight Limited
- SplitPay, Inc.
- ViaBill A/S
- Sunbit Inc.
- Humm Group Limited
- QuickFee Limited
- Partial.ly Inc.
- ZestMoney (PaySense Services India Pvt. Ltd.)
- Bread Finance, Inc.
Buy Now Pay Later Market Recent Development
- In January 2022, Affirm Holdings Inc., BNPL service provider for the consumers, launched SuperApp. It provides advanced BNPL options for payments, shopping, and financial services with one easy-to-use solution.
- In January 2022, Block, Inc. Technology Company for financial services acquired Afterpay Limited. This acquisition aims to provide Block, Inc. with enhanced financial services and products. It helped the company expand access for more consumers to drive revenue for all sellers and merchants.
- In January 2022, Afterpay Limited partnered with several retailers such as Calvin Klein, Nordstrom, and Tommy Hilfiger. With this partnership, Afterpay Limited provides this service offering for these retailers' online and retail stores. This allowed the consumers to shop and use the buy now, pay later service.
- In December 2021, SaveIN, a consumer credit fintech company, has launched an offline point of sale installment loans product for the financing needed to manage healthcare expenses. The company calls this service care now pay later to provide service to the customers' physical point of care facilities.
Global Buy Now Pay Later Key Market Trends
- Integration of BNPL services:One notable trend in the Buy Now Pay Later (BNPL) market is the integration of BNPL services with brick-and-mortar retailers. While BNPL initially gained popularity in the e-commerce space, it is now expanding into physical stores. Retailers are partnering with BNPL providers to offer customers the option to split their in-store purchases into installments, creating a seamless and flexible payment experience. This trend aims to bridge the gap between online and offline shopping and cater to consumer preferences for convenient payment options. The integration of BNPL services in physical retail environments is expected to further accelerate the growth and adoption of this payment method.
Global Buy Now Pay Later Market SkyQuest Analysis
SkyQuest’s ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our business information services team that collects, collates, co-relates, and analyses the data collected by means of primary exploratory research backed by the robust secondary desk research.
According to our analysis, the expansion of the e-commerce sector worldwide and the availability of affordable and convenient payment services provided by buy now pay later platforms are the main factors influencing the growth of the global buy now pay later market trends. High late and returned payment fees, however, limit market expansion. On the other hand, it is projected that rising adult spending on luxury goods and rising desire for delayed payments for internet purchases would create profitable prospects for the buy now pay later market.
| Report Metric | Details |
|---|---|
| Market size value in 2023 | USD 4.86 billion |
| Market size value in 2031 | USD 49.41 billion |
| Growth Rate | 26.1% |
| Forecast period | 2024-2031 |
| Forecast Unit (Value) | USD Billion |
| Segments covered |
|
| Regions covered | North America (US, Canada), Europe (Germany, France, United Kingdom, Italy, Spain, Rest of Europe), Asia Pacific (China, India, Japan, Rest of Asia-Pacific), Latin America (Brazil, Rest of Latin America), Middle East & Africa (South Africa, GCC Countries, Rest of MEA) |
| Companies covered |
|
| Customization scope | Free report customization with purchase. Customization includes:-
|
| Historical Year | 2019 |
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Table Of Content
Executive Summary
Market overview
- Exhibit: Executive Summary – Chart on Market Overview
- Exhibit: Executive Summary – Data Table on Market Overview
- Exhibit: Executive Summary – Chart on Global Buy Now Pay Later Market Characteristics
- Exhibit: Executive Summary – Chart on Market by Geography
- Exhibit: Executive Summary – Chart on Market Segmentation
- Exhibit: Executive Summary – Chart on Incremental Growth
- Exhibit: Executive Summary – Data Table on Incremental Growth
- Exhibit: Executive Summary – Chart on Vendor Market Positioning
Parent Market Analysis
Market overview
Market size
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- SWOT Analysis
KEY MARKET INSIGHTS
- Technology Analysis
- (Exhibit: Data Table: Name of technology and details)
- Pricing Analysis
- (Exhibit: Data Table: Name of technology and pricing details)
- Supply Chain Analysis
- (Exhibit: Detailed Supply Chain Presentation)
- Value Chain Analysis
- (Exhibit: Detailed Value Chain Presentation)
- Ecosystem Of the Market
- Exhibit: Parent Market Ecosystem Market Analysis
- Exhibit: Market Characteristics of Parent Market
- IP Analysis
- (Exhibit: Data Table: Name of product/technology, patents filed, inventor/company name, acquiring firm)
- Trade Analysis
- (Exhibit: Data Table: Import and Export data details)
- Startup Analysis
- (Exhibit: Data Table: Emerging startups details)
- Raw Material Analysis
- (Exhibit: Data Table: Mapping of key raw materials)
- Innovation Matrix
- (Exhibit: Positioning Matrix: Mapping of new and existing technologies)
- Pipeline product Analysis
- (Exhibit: Data Table: Name of companies and pipeline products, regional mapping)
- Macroeconomic Indicators
COVID IMPACT
- Introduction
- Impact On Economy—scenario Assessment
- Exhibit: Data on GDP - Year-over-year growth 2016-2022 (%)
- Revised Market Size
- Exhibit: Data Table on Global Buy Now Pay Later Market size and forecast 2021-2027 ($ million)
- Impact Of COVID On Key Segments
- Exhibit: Data Table on Segment Market size and forecast 2021-2027 ($ million)
- COVID Strategies By Company
- Exhibit: Analysis on key strategies adopted by companies
MARKET DYNAMICS & OUTLOOK
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- Regulatory Landscape
- Exhibit: Data Table on regulation from different region
- SWOT Analysis
- Porters Analysis
- Competitive rivalry
- Exhibit: Competitive rivalry Impact of key factors, 2021
- Threat of substitute products
- Exhibit: Threat of Substitute Products Impact of key factors, 2021
- Bargaining power of buyers
- Exhibit: buyers bargaining power Impact of key factors, 2021
- Threat of new entrants
- Exhibit: Threat of new entrants Impact of key factors, 2021
- Bargaining power of suppliers
- Exhibit: Threat of suppliers bargaining power Impact of key factors, 2021
- Competitive rivalry
- Skyquest special insights on future disruptions
- Political Impact
- Economic impact
- Social Impact
- Technical Impact
- Environmental Impact
- Legal Impact
Market Size by Region
- Chart on Market share by geography 2021-2027 (%)
- Data Table on Market share by geography 2021-2027(%)
- North America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- USA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Canada
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Europe
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Germany
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Spain
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- France
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- UK
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Europe
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Asia Pacific
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- China
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- India
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Japan
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Korea
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Asia Pacific
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Latin America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Brazil
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of South America
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Middle East & Africa (MEA)
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- GCC Countries
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Africa
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of MEA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
KEY COMPANY PROFILES
- Competitive Landscape
- Total number of companies covered
- Exhibit: companies covered in the report, 2021
- Top companies market positioning
- Exhibit: company positioning matrix, 2021
- Top companies market Share
- Exhibit: Pie chart analysis on company market share, 2021(%)
- Total number of companies covered
Methodology
For the Global Buy Now Pay Later Market, our research methodology involved a mixture of primary and secondary data sources. Key steps involved in the research process are listed below:
1. Information Procurement: This stage involved the procurement of Market data or related information via primary and secondary sources. The various secondary sources used included various company websites, annual reports, trade databases, and paid databases such as Hoover's, Bloomberg Business, Factiva, and Avention. Our team did 45 primary interactions Globally which included several stakeholders such as manufacturers, customers, key opinion leaders, etc. Overall, information procurement was one of the most extensive stages in our research process.
2. Information Analysis: This step involved triangulation of data through bottom-up and top-down approaches to estimate and validate the total size and future estimate of the Global Buy Now Pay Later Market.
3. Report Formulation: The final step entailed the placement of data points in appropriate Market spaces in an attempt to deduce viable conclusions.
4. Validation & Publishing: Validation is the most important step in the process. Validation & re-validation via an intricately designed process helped us finalize data points to be used for final calculations. The final Market estimates and forecasts were then aligned and sent to our panel of industry experts for validation of data. Once the validation was done the report was sent to our Quality Assurance team to ensure adherence to style guides, consistency & design.
Analyst Support
Customization Options
With the given market data, our dedicated team of analysts can offer you the following customization options are available for the Global Buy Now Pay Later Market:
Product Analysis: Product matrix, which offers a detailed comparison of the product portfolio of companies.
Regional Analysis: Further analysis of the Global Buy Now Pay Later Market for additional countries.
Competitive Analysis: Detailed analysis and profiling of additional Market players & comparative analysis of competitive products.
Go to Market Strategy: Find the high-growth channels to invest your marketing efforts and increase your customer base.
Innovation Mapping: Identify racial solutions and innovation, connected to deep ecosystems of innovators, start-ups, academics, and strategic partners.
Category Intelligence: Customized intelligence that is relevant to their supply Markets will enable them to make smarter sourcing decisions and improve their category management.
Public Company Transcript Analysis: To improve the investment performance by generating new alpha and making better-informed decisions.
Social Media Listening: To analyze the conversations and trends happening not just around your brand, but around your industry as a whole, and use those insights to make better Marketing decisions.
Global Buy Now Pay Later Market Report Snapshots
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