Buy Now Pay Later Market
Buy Now Pay Later Market Forecasts to 2030 - Global Analysis By Component (Platform/Solutions and Services), Purchase Ticket Size (Small Ticket Item, Mid Ticket Items and Higher Prime Segments), Business Model (Customer Driven and Business Driven), Mode, Enterprise Size, Application, End User and By Geography
According to Stratistics MRC, the Global Buy Now Pay Later Market is accounted for $28.83 billion in 2023 and is expected to reach $131.47 billion by 2030 growing at a CAGR of 24.2% during the forecast period. The Buy now pay later (BNPL) is a financial service sector that allows consumers to make purchases and defer payment for them over time. It provides an alternative to traditional credit cards and installment loans, offering flexibility and convenience to consumers. With BNPL, customers can split their payments into interest-free installments, making it an attractive option for budget-conscious shoppers. Online retailers and brick-and-mortar stores alike are increasingly integrating BNPL options into their checkout processes to enhance the customer shopping experience and drive higher conversion rates.
According to the Bank of America Corp., the market for these BNPL payment apps is expected to grow 10-15 times by 2025
Market Dynamics:
Driver:
Rise in artificial intelligence (A.I.) technology integration
The development of models in real-time and improved decision-making are made possible by machine learning and artificial intelligence (A.I.) technologies. To speed up consumer market penetration, a number of industry players are developing specialized AI-based models. For instance, in January 2022, Temenos, a provider of banking software, unveiled a BNPL banking service powered by AI within its Temenos Banking Cloud platform. The platform is based on artificial intelligence (A.I.) technology and provides opportunities through alternative credit options for clients and merchants. As A.I. technology is increasingly used to expand the real-time customer base, this trend will be driven by the worldwide market.
Restraint:
Lack of awareness of service
While BNPL offers consumers the convenience of deferred payment for purchases, many potential users remain unaware of its availability or the benefits it offers. Limited knowledge about the service's terms and conditions, fees, and potential risks may deter potential customers from adopting BNPL options. Furthermore, concerns about accumulating debt and potential impact on credit scores may deter individuals from using BNPL, especially if they are not adequately informed about responsible usage. Addressing this lack of awareness through educational initiatives and transparent communication is crucial for the BNPL market to realize its full potential and attract a broader user base.
Opportunity:
Rising adoption of online ecommerce application
As e-commerce continues to grow, consumers seek flexible and convenient payment options, making BNPL services an attractive proposition. With the shift towards digital shopping platforms, BNPL providers can integrate their services seamlessly, offering consumers the choice to split their payments over installments, easing the burden of upfront costs. The convenience and simplicity of BNPL appeal to a broader customer base, driving higher adoption rates. As online shopping becomes increasingly prevalent, BNPL providers have the chance to expand their services and tap into the growing e-commerce market, elevating the overall growth and success of the BNPL industry.
Threat:
High late fee charges
While BNPL services offer convenient and flexible payment options, customers risk accumulating additional costs if they fail to meet payment deadlines. Exorbitant late fees can deter users from utilizing BNPL, as the fear of incurring substantial penalties may outweigh the benefits of deferred payment. To address this concern, BNPL providers must strike a balance between ensuring timely payments and offering reasonable late fee structures. Implementing transparent and fair late fee policies can build trust with customers, encouraging wider adoption of BNPL services and promoting responsible usage in the market.
Covid-19 Impact:
The COVID-19 pandemic has had a positive impact on the market. The global economic crisis has reduced household incomes, increasing the need for liquidity, which is predicted to last through 2022. Consumer confidence in using different online payment methods to buy things has been fuelled by the pandemic and has created a new norm for online shopping. Amid addition, amid difficult economic conditions banks frequently refrain from extending credit. In these situations, BNPL's solutions assist clients in making recurring payments on their invoices. The COVID-19 pandemic has consequently led to a considerable increase in BNPL transactions.
The travel & accommodation segment is expected to be the largest during the forecast period
The travel & accommodation segment held the largest share in the market owing to the increasing demand as their services are now extended beyond retail purchases to include vacation expenses such as flights, hotels, and tours. By offering deferred payment options for travel and accommodation, BNPL providers cater to consumers' desire for flexible and budget-friendly vacation planning. This enables travelers to book their dream trips without the need for immediate full payment, making travel more accessible and affordable. With the rising popularity of travel and the convenience of BNPL, this segment has seen substantial growth, empowering travelers to explore new destinations and experiences while managing their expenses responsibly.
The online segment is expected to have the highest CAGR during the forecast period
During the projection period, the online segment is expected to have the greatest CAGR. Online shopping's surging popularity has propelled the adoption of BNPL services, with digital retailers seamlessly integrating these payment options into their checkout processes. Customers appreciate the convenience and flexibility of BNPL, allowing them to make purchases without immediate full payment, making it an attractive choice for various goods and services. Furthermore, the online nature of BNPL ensures quick and easy application processes, instant approvals, and prompt transactions, enhancing the overall user experience. As e-commerce continues to thrive, BNPL's online presence provides a robust and promising landscape for the market's growth and expansion.
Region with largest share:
The North America region market is estimated to witness the highest share of the global Buy Now Pay Later market during the forecast period. With a mature e-commerce landscape and a large consumer base, BNPL services have gained significant traction. Online retailers and brick-and-mortar stores alike are integrating BNPL options into their checkout processes to offer customers a convenient and flexible payment alternative. The region's tech-savvy population values seamless digital experiences, making BNPL an appealing choice for a wide range of purchases. Additionally, BNPL providers in North America focus on building trust and loyalty by offering transparent and reasonable fee structures. As the BNPL market continues to evolve, North America remains at the forefront of its expansion and innovation.
Region with highest CAGR:
The Asia Pacific region is expected to have the highest growth rate over the forecast period. The region's expanding middle class, rising disposable incomes, and increasing digitalization have contributed to the surge in online shopping and e-commerce platforms, creating a favorable environment for BNPL services. As consumers seek flexible and convenient payment options, BNPL providers have capitalized on the region's booming e-commerce market, integrating their services with various online retailers and payment gateways. The accessibility and ease of BNPL options resonate well with the tech-savvy population in Asia Pacific, offering a promising opportunity for BNPL companies to establish a strong foothold in this fast-growing and dynamic market.
Key players in the market
Some of the key players in Buy Now Pay Later market include Affirm Holdings Inc., Afterpay, Billie, Klarna Bank AB, Klarna Inc., LatitudePay, Laybuy Group Holdings Limited, Openpay, Paylater, PayPal Holdings Inc., Perpay Inc., Quadpay, Inc., Sezzle and Splitit.
Key Developments:
In March 2022, Temenos launched an AI-based BNPL banking service within the Temenos Banking Cloud platform. The platform is based on AI technology that offers both consumers and merchant’s opportunities through alternative credit products
In January 2022, Santander, Spanish Bank launched its BNPL application 'Zinnia' for the Europe market. Zinnia app helps consumers to purchase with monthly interest free installment payments across European countries
In September 2021, Coverpay launched its buy now, pay later service for the general insurance sector. The company received an investment of around USD 2.5 million. This product targets merchants for insurance services such as insurers, underwriting agencies, brokers, and authorized representatives
Components Covered:
• Platform/Solutions
• Services
Purchase Ticket Sizes Covered:
• Small Ticket Item (Up to US$ 300)
• Mid Ticket Items (US$ 300 - US$ 1000)
• Higher Prime Segments (Above US$ 1000)
Business Models Covered:
• Customer Driven
• Business Driven
Modes Covered:
• Online
• Point of Sale (PoS)
Enterprise Sizes Covered:
• Large Enterprises
• Small & Medium Enterprises
Applications Covered:
• Banking, Financial Services and Insurance (BFSI)
• Furniture
• Electrical Goods & Home Appliances
• Clothing & Footwear
• Sports & Fitness Equipment
• Travel & Accommodation
• Media & Entertainment
• Health & Beauty
• Food & Drink
• Other Applications
End Users Covered:
• Generation X
• Generation Z/Millennials
• Baby Boomers
• Other End Users
Regions Covered:
• North America
o US
o Canada
o Mexico
• Europe
o Germany
o UK
o Italy
o France
o Spain
o Rest of Europe
• Asia Pacific
o Japan
o China
o India
o Australia
o New Zealand
o South Korea
o Rest of Asia Pacific
• South America
o Argentina
o Brazil
o Chile
o Rest of South America
• Middle East & Africa
o Saudi Arabia
o UAE
o Qatar
o South Africa
o Rest of Middle East & Africa
What our report offers:
- Market share assessments for the regional and country-level segments
- Strategic recommendations for the new entrants
- Covers Market data for the years 2021, 2022, 2023, 2026, and 2030
- Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
- Strategic recommendations in key business segments based on the market estimations
- Competitive landscaping mapping the key common trends
- Company profiling with detailed strategies, financials, and recent developments
- Supply chain trends mapping the latest technological advancements
Free Customization Offerings:
All the customers of this report will be entitled to receive one of the following free customization options:
• Company Profiling
o Comprehensive profiling of additional market players (up to 3)
o SWOT Analysis of key players (up to 3)
• Regional Segmentation
o Market estimations, Forecasts and CAGR of any prominent country as per the client's interest (Note: Depends on feasibility check)
• Competitive Benchmarking
Benchmarking of key players based on product portfolio, geographical presence, and strategic alliances
Table of Contents
1 Executive Summary
2 Preface
2.1 Abstract
2.2 Stake Holders
2.3 Research Scope
2.4 Research Methodology
2.4.1 Data Mining
2.4.2 Data Analysis
2.4.3 Data Validation
2.4.4 Research Approach
2.5 Research Sources
2.5.1 Primary Research Sources
2.5.2 Secondary Research Sources
2.5.3 Assumptions
3 Market Trend Analysis
3.1 Introduction
3.2 Drivers
3.3 Restraints
3.4 Opportunities
3.5 Threats
3.6 Application Analysis
3.7 End User Analysis
3.8 Emerging Markets
3.9 Impact of Covid-19
4 Porters Five Force Analysis
4.1 Bargaining power of suppliers
4.2 Bargaining power of buyers
4.3 Threat of substitutes
4.4 Threat of new entrants
4.5 Competitive rivalry
5 Global Buy Now Pay Later Market, By Component
5.1 Introduction
5.2 Platform/Solutions
5.3 Services
6 Global Buy Now Pay Later Market, By Purchase Ticket Size
6.1 Introduction
6.2 Small Ticket Item (Up to US$ 300)
6.3 Mid Ticket Items (US$ 300 - US$ 1000)
6.4 Higher Prime Segments (Above US$ 1000)
7 Global Buy Now Pay Later Market, By Business Model
7.1 Introduction
7.2 Customer Driven
7.3 Business Driven
8 Global Buy Now Pay Later Market, By Mode
8.1 Introduction
8.2 Online
8.3 Point of Sale (PoS)
9 Global Buy Now Pay Later Market, By Enterprise Size
9.1 Introduction
9.2 Large Enterprises
9.3 Small & Medium Enterprises
10 Global Buy Now Pay Later Market, By Application
10.1 Introduction
10.2 Banking, Financial Services and Insurance (BFSI)
10.3 Furniture
10.4 Electrical Goods & Home Appliances
10.5 Clothing & Footwear
10.6 Sports & Fitness Equipment
10.7 Travel & Accommodation
10.8 Media & Entertainment
10.9 Health & Beauty
10.10 Food & Drink
10.11 Other Applications
11 Global Buy Now Pay Later Market, By End User
11.1 Introduction
11.2 Generation X
11.3 Generation Z/Millennials
11.4 Baby Boomers
11.5 Other End Users
12 Global Buy Now Pay Later Market, By Geography
12.1 Introduction
12.2 North America
12.2.1 US
12.2.2 Canada
12.2.3 Mexico
12.3 Europe
12.3.1 Germany
12.3.2 UK
12.3.3 Italy
12.3.4 France
12.3.5 Spain
12.3.6 Rest of Europe
12.4 Asia Pacific
12.4.1 Japan
12.4.2 China
12.4.3 India
12.4.4 Australia
12.4.5 New Zealand
12.4.6 South Korea
12.4.7 Rest of Asia Pacific
12.5 South America
12.5.1 Argentina
12.5.2 Brazil
12.5.3 Chile
12.5.4 Rest of South America
12.6 Middle East & Africa
12.6.1 Saudi Arabia
12.6.2 UAE
12.6.3 Qatar
12.6.4 South Africa
12.6.5 Rest of Middle East & Africa
13 Key Developments
13.1 Agreements, Partnerships, Collaborations and Joint Ventures
13.2 Acquisitions & Mergers
13.3 New Product Launch
13.4 Expansions
13.5 Other Key Strategies
14 Company Profiling
14.1 Affirm Holdings Inc.
14.2 Afterpay
14.3 Billie
14.4 Klarna Bank AB
14.5 Klarna Inc.
14.6 LatitudePay
14.7 Laybuy Group Holdings Limited
14.8 Openpay
14.9 Paylater
14.10 PayPal Holdings Inc.
14.11 Perpay Inc.
14.12 Quadpay, Inc.
14.13 Sezzle
14.14 Splitit
List of Tables
1 Global Buy Now Pay Later Market Outlook, By Region (2021-2030) ($MN)
2 Global Buy Now Pay Later Market Outlook, By Component (2021-2030) ($MN)
3 Global Buy Now Pay Later Market Outlook, By Platform/Solutions (2021-2030) ($MN)
4 Global Buy Now Pay Later Market Outlook, By Services (2021-2030) ($MN)
5 Global Buy Now Pay Later Market Outlook, By Purchase Ticket Size (2021-2030) ($MN)
6 Global Buy Now Pay Later Market Outlook, By Small Ticket Item (Up to US$ 300) (2021-2030) ($MN)
7 Global Buy Now Pay Later Market Outlook, By Mid Ticket Items (US$ 300 - US$ 1000) (2021-2030) ($MN)
8 Global Buy Now Pay Later Market Outlook, By Higher Prime Segments (Above US$ 1000) (2021-2030) ($MN)
9 Global Buy Now Pay Later Market Outlook, By Business Model (2021-2030) ($MN)
10 Global Buy Now Pay Later Market Outlook, By Customer Driven (2021-2030) ($MN)
11 Global Buy Now Pay Later Market Outlook, By Business Driven (2021-2030) ($MN)
12 Global Buy Now Pay Later Market Outlook, By Mode (2021-2030) ($MN)
13 Global Buy Now Pay Later Market Outlook, By Online (2021-2030) ($MN)
14 Global Buy Now Pay Later Market Outlook, By Point of Sale (PoS) (2021-2030) ($MN)
15 Global Buy Now Pay Later Market Outlook, By Enterprise Size (2021-2030) ($MN)
16 Global Buy Now Pay Later Market Outlook, By Large Enterprises (2021-2030) ($MN)
17 Global Buy Now Pay Later Market Outlook, By Small & Medium Enterprises (2021-2030) ($MN)
18 Global Buy Now Pay Later Market Outlook, By Application (2021-2030) ($MN)
19 Global Buy Now Pay Later Market Outlook, By Banking, Financial Services and Insurance (BFSI) (2021-2030) ($MN)
20 Global Buy Now Pay Later Market Outlook, By Furniture (2021-2030) ($MN)
21 Global Buy Now Pay Later Market Outlook, By Electrical Goods & Home Appliances (2021-2030) ($MN)
22 Global Buy Now Pay Later Market Outlook, By Clothing & Footwear (2021-2030) ($MN)
23 Global Buy Now Pay Later Market Outlook, By Sports & Fitness Equipment (2021-2030) ($MN)
24 Global Buy Now Pay Later Market Outlook, By Travel & Accommodation (2021-2030) ($MN)
25 Global Buy Now Pay Later Market Outlook, By Media & Entertainment (2021-2030) ($MN)
26 Global Buy Now Pay Later Market Outlook, By Health & Beauty (2021-2030) ($MN)
27 Global Buy Now Pay Later Market Outlook, By Food & Drink (2021-2030) ($MN)
28 Global Buy Now Pay Later Market Outlook, By Other Applications (2021-2030) ($MN)
29 Global Buy Now Pay Later Market Outlook, By End User (2021-2030) ($MN)
30 Global Buy Now Pay Later Market Outlook, By Generation X (2021-2030) ($MN)
31 Global Buy Now Pay Later Market Outlook, By Generation Z/Millennials (2021-2030) ($MN)
32 Global Buy Now Pay Later Market Outlook, By Baby Boomers (2021-2030) ($MN)
33 Global Buy Now Pay Later Market Outlook, By Other End Users (2021-2030) ($MN)
Note: Tables for North America, Europe, APAC, South America, and Middle East & Africa Regions are also represented in the same manner as above.
List of Figures
RESEARCH METHODOLOGY
We at ‘Stratistics’ opt for an extensive research approach which involves data mining, data validation, and data analysis. The various research sources include in-house repository, secondary research, competitor’s sources, social media research, client internal data, and primary research.
Our team of analysts prefers the most reliable and authenticated data sources in order to perform the comprehensive literature search. With access to most of the authenticated data bases our team highly considers the best mix of information through various sources to obtain extensive and accurate analysis.
Each report takes an average time of a month and a team of 4 industry analysts. The time may vary depending on the scope and data availability of the desired market report. The various parameters used in the market assessment are standardized in order to enhance the data accuracy.
Data Mining
The data is collected from several authenticated, reliable, paid and unpaid sources and is filtered depending on the scope & objective of the research. Our reports repository acts as an added advantage in this procedure. Data gathering from the raw material suppliers, distributors and the manufacturers is performed on a regular basis, this helps in the comprehensive understanding of the products value chain. Apart from the above mentioned sources the data is also collected from the industry consultants to ensure the objective of the study is in the right direction.
Market trends such as technological advancements, regulatory affairs, market dynamics (Drivers, Restraints, Opportunities and Challenges) are obtained from scientific journals, market related national & international associations and organizations.
Data Analysis
From the data that is collected depending on the scope & objective of the research the data is subjected for the analysis. The critical steps that we follow for the data analysis include:
- Product Lifecycle Analysis
- Competitor analysis
- Risk analysis
- Porters Analysis
- PESTEL Analysis
- SWOT Analysis
The data engineering is performed by the core industry experts considering both the Marketing Mix Modeling and the Demand Forecasting. The marketing mix modeling makes use of multiple-regression techniques to predict the optimal mix of marketing variables. Regression factor is based on a number of variables and how they relate to an outcome such as sales or profits.
Data Validation
The data validation is performed by the exhaustive primary research from the expert interviews. This includes telephonic interviews, focus groups, face to face interviews, and questionnaires to validate our research from all aspects. The industry experts we approach come from the leading firms, involved in the supply chain ranging from the suppliers, distributors to the manufacturers and consumers so as to ensure an unbiased analysis.
We are in touch with more than 15,000 industry experts with the right mix of consultants, CEO's, presidents, vice presidents, managers, experts from both supply side and demand side, executives and so on.
The data validation involves the primary research from the industry experts belonging to:
- Leading Companies
- Suppliers & Distributors
- Manufacturers
- Consumers
- Industry/Strategic Consultants
Apart from the data validation the primary research also helps in performing the fill gap research, i.e. providing solutions for the unmet needs of the research which helps in enhancing the reports quality.
For more details about research methodology, kindly write to us at info@strategymrc.com
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