USD 32.03 billion
Report ID:
SQMIG40D2036 |
Region:
Global |
Published Date: June, 2025
Pages:
193
|Tables:
119
|Figures:
77
Global Buy Now Pay Later Market size was valued at USD 32.03 billion in 2023 and is poised to grow from USD 39.27 billion in 2024 to USD 200.43 billion by 2032, growing at a CAGR of 22.6% during the forecast period (2025-2032).
Increasing consumer preference for flexible payment options, boom in e-commerce industry, evolution of digital payments landscape, retail partnerships, and increasing emphasis on improving financial inclusivity are driving up the demand for buy now pay later going forward.
Consumers increasingly prefer installment-based purchasing to avoid upfront payment burdens, especially big-ticket or discretionary items. Buy now pay later providers are partnering with e-commerce platforms and digital wallets to embed their services within purchase journeys as they capitalize on the e-commerce boom. Gen Z and millennials represent a large, tech-savvy consumer base favoring convenience and control over traditional credit products such as buy now pay later solutions. Merchants are increasingly partnering with BNPL providers to improve customer conversion and drive sales. Efforts of organizations and banks to improve credit accessibility are also playing a key role in driving buy now pay later market growth.
However, rising consumer debt levels, lack of consumer awareness, regulatory uncertainty, high competition, and risk of fraud are some key factors that slow down buy now pay later market penetration in the long run.
Market snapshot - (2025-2032)
Global Market Size
USD 32.03 billion
Largest Segment
Online
Fastest Growth
Point of Sale
Growth Rate
22.6% CAGR
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The global buy now pay later market is segmented by channel, demographic, organization size, industry, and region. Based on channel, the market can be segmented into point of sale and online. Based on demographic, the market is segmented into under 18 years, 18-40 years, and above 40 years. Based on organization size, the market is segmented into large enterprises and SMEs. Based on industry, the market is segmented into BFSI, retail & ecommerce, healthcare, media & entertainment, travel & tourism, automotive, and others. Based on region, the market is segmented into North America, Europe, Asia Pacific, Latin America, and Middle East & Africa.
Which Channels are Leading the Adoption of Buy now pay later Solutions?
Online channels are projected to spearhead the global buy now pay later over market revenue in the coming years. The e-commerce boom in recent years and the growing number of online payments are key contributors to the high market share of this segment. The demand for online buy now pay later solutions and services has especially picked up pace around the world after the COVID-19 pandemic back in 2020. Increasing collaborations between companies to provide online buy now pay later services will also help this segment bolster market growth going forward.
The growing number of retailers offering buy now pay later services for their customers is projected to boost market growth via the point-of-sale segment over the coming years. The digitization of the offline retail space and growing consumer awareness regarding buy-now-pay later services are all contributing to the rapid growth of this segment going forward.
Where is the Adoption of Buy now pay later Solutions Highest?
The e-commerce & retail industry is projected to account for a major chunk of the global buy now pay later market share. Rapid adoption of buy now pay later services and growing consumer acceptance of the same are helping this segment maintain its dominance. The evolution of consumer preferences and the growing number of purchases by consumers through e-commerce are also expected to help promote market growth in the future.
On the other hand, the demand for buy now pay later in the healthcare space is slated to increase at a rapid pace as per this buy now pay later industry analysis. Rising healthcare costs are a key contributor to the growth of this segment. There is a lot of untapped potential for buy now pay later companies in the healthcare industry as treatments and drugs become more expensive than ever before.
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Why do Buy Now Pay Later Companies Flock in North America?
Presence of multiple financial organizations and buy now pay later providers in the North American region allows it to hold a high market share. High purchasing power of consumers and high awareness regarding buy now pay later services are also expected to help this segment maintain a dominant stance. Extensive integration of buy now pay later services in multiple offerings across various industry verticals is also expected to help this region maintain a high market share.
Buy Now Pay Later Market in United States
Robust e-commerce penetration, millennial and Gen Z adoption, and a maturing fintech ecosystem are helping this country lead global buy now pay later demand. Preference for buy now pay later over credit cards for short term financing is creating new opportunities for market players such as Affirm, Afterpay, Klarna, and PayPal. Financial institutions and big tech are integrating BNPL into digital wallets and banking apps. However, imposition of stricter compliance regulations from the Consumer Financial Protection Bureau (CFPB) to control consumer debt could hamper buy now pay later adoption.
Buy Now Pay Later Market in Canada
Rising adoption of digital payments and younger consumer preference for interest-free financing are helping promote market development in Canada. Sezzle, PayBright, Klarna, and Afterpay are the leading buy now pay later providers in the country. The government is exploring regulatory safeguards to ensure responsible lending through buying now pay later to avoid bad debt issues. Canada’s tech-savvy population, rising online retail activity, and openness to fintech innovation position it as a promising market for long-term buy now pay later growth across both urban and suburban regions.
Why Buy Now Pay Later Innovators Targeting Asia Pacific?
The demand for buy now pay later in the Asia Pacific region is slated to increase at a robust CAGR over the coming years. The massive e-commerce boom in countries such as India and China is majorly helping this region become a key name in the global buy now pay later market landscape. Evolving consumer preferences, growing disposable income, and rising availability of buy now pay later alternatives are other key factors that help buy now pay later demand in this region.
Buy Now Pay Later Market in Japan
Presence of a financial culture that favors cash and prepaid methods is slowing down the adoption of buy now pay later in Japan. Younger consumers and e-commerce shoppers are slowly shifting towards buy now pay later solutions especially for fashion, electronics, and gaming purchases. Digital retail expansion and changing attitudes toward credit among the younger Japanese population are playing a crucial role in governing the adoption of buy now pay later solutions in the country.
Buy Now Pay Later Market in South Korea
Presence of a tech-savvy consumer based coupled with a developed fintech infrastructure makes South Korea an attractive country for buy now pay later providers. Integration of buy now pay later by Toss and Kakao Pay into super apps is helping promote revenue generation. High mobile commerce usage and demand for convenient, short-term financing are also slated to boost business for buy now pay later companies. South Korea’s fast-paced digital economy and high digital literacy support continued innovation and consumer adoption in the BNPL space.
How will Demand for Buy Now Pay Later Fare in European Region?
Growing digital transformation, regulatory oversight, and consumer appetite for flexible payments are helping keep buy now pay later demand afloat in Europe. High preference for online shopping, presence of a developed fintech landscape, and high acceptance of novel fintech solutions are further creating new opportunities for market players. The retail and service sectors are expected to lead the adoption of buy now pay later solutions in this region.
Buy now pay later Market in United Kingdom
The presence of leading buy now pay later providers such as Klarna, Clearpay, and Laybuy makes this country a key market in Europe. Growing adoption of digital banking and openness to fintech reforms are also expected to bolster the adoption of buy now pay later services in the country. However, rising concerns over consumer debt and lack of transparency have prompted the Financial Conduct Authority (FCA) to introduce regulatory reforms, which could hurt market development. Increasing economic uncertainty and cost-of-living are expected to continue boosting buy now pay later adoption in the United Kingdom over the coming years.
Buy Now Pay Later Market in Germany
Strong culture of invoice-based payments and digital commerce are expected to govern the demand for buy now pay later solutions in Germany. Preference for structured, interest-free installments for fashion, electronics, and travel purchases is high among Germans. Transitioning of buy now pay later from a novelty option to a mainstream payment solution, particularly among younger Germans who value convenience, flexibility, and budgeting control is creating new opportunities.
Buy Now Pay Later Market in France
Rising economic pressures and consumer interest in flexible payment options are helping drive buy now pay later demand in France going forward. Alma, Klarna, and Oney are the top buy now pay later platforms used in online fashion, electronics, and travel industries. French consumers are cautious with debt, so short-term, no-interest BNPL solutions are gaining popularity. As digital literacy and fintech confidence increase, France is slated to emerge as a core buy now pay later industry within the EU through 2032 and beyond.
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Buy Now Pay Later Market Drivers
Advancements in Fintech Infrastructure
Improving Financial Inclusion and Credit Accessibility
Buy Now Pay Later Market Restraints
Rising Consumer Debt and Over-Spending Risk
Risk of Fraud and Non-Payment
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Buy now pay later companies are expected to focus on partnerships to expand their business scope. Providing seamless integration of buy now pay later solutions with existing payment infrastructure will also be essential for buy now pay later companies to improve their business scope in the future. Growing adoption of buy now pay later in offline retail establishments will also offer lucrative opportunities in the long run. Offering no-interest and low-interest payment options will also be a popular strategy for all buy now pay later providers.
Here are a couple of startups that are expected to bolster the demand for buy now pay later in the long run.
Top Player’s Company Profiles
Recent Developments in Buy Now Pay Later Market
SkyQuest’s ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Services team that Collects, Collates, Correlates, and Analyses the Data collected by means of Primary Exploratory Research backed by robust Secondary Desk research.
As per SkyQuest analysis, evolving consumer preferences and rising availability of buy now pay later solutions and services are primarily driving market growth. On the contrary, bad debt concerns, high competition, and lack of awareness are expected to slow down buy now pay later adoption in the future. The presence of multiple buy now pay later providers and strong awareness regarding buy now pay later are helping North America secure the top spot in the global buy now pay later market. Most revenue for buy now pay later companies is estimated to come from the e-commerce and retail industry going forward. Providing buy now pay later solutions and services for new industry verticals apart from retail will be crucial in generating new business for buy now pay later companies in the long run.
Report Metric | Details |
---|---|
Market size value in 2023 | USD 32.03 billion |
Market size value in 2032 | USD 200.43 billion |
Growth Rate | 22.6% |
Base year | 2024 |
Forecast period | (2025-2032) |
Forecast Unit (Value) | USD Billion |
Segments covered |
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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 |
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Customization scope | Free report customization with purchase. Customization includes:-
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Table Of Content
Executive Summary
Market overview
Parent Market Analysis
Market overview
Market size
KEY MARKET INSIGHTS
COVID IMPACT
MARKET DYNAMICS & OUTLOOK
Market Size by Region
KEY COMPANY PROFILES
Methodology
For the 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 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 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 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.
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