The global buy now pay later market is expected to reach USD 61.09 billion by 2032, at a CAGR of 23.6% from 2023 to 2032. Buy now pay later market growth would be driven by the increasing demand for installment-based payments, rising adoption of alternate financing options by retailers & the convenient & affordable nature of the buy now pay later model.
Budgeting is a part of every consumer household, a business entity, and the government. The purchases and the expenditures made by a consumer or the business are made after considering the available income & savings. Usually, the middle-class population cannot afford high-end appliances and luxury products given their low income and minuscule savings. Similarly, small and medium enterprises cannot buy capital-intensive machinery with their available revenue or cash flows. Buy now pay later (BNPL) allows the consumers and the small & medium enterprises to purchase out-of-budget items on a short-term financing basis. BNPL enables the consumer to pay for the item in small installments stretched over a period of time. The interest-free payments are an added benefit. The use of the buy now pay later short-term financing model increases affordability, gives instant access to credit, ensures a safe and secure transaction. The approval of BNPL is a simple procedure and offers transparency about the transactions. BNPL also has certain advantages over credit cards. Consumers need to have a good credit score. The approval standards are high, lowering the approval rates of credit cards. Hidden charges levied on credit cards make them expensive and repel potential customers. In contrast, BNPL has no pre-conditions about having a good credit history. It also has low-cost pricing, easier approval, and follows a transparent procedure. BNPL can be provided on a stand-alone basis for just one or two purchases if the consumer desires so. Businesses can use buy now pay later arrangements with their creditors, suppliers, or vendors, which allows businesses to purchase high-end equipment and machinery without straining the company's cash flows. The retailers who utilize this credit model can improve their sales and consumer base. It helps establish a long-term relationship between the retailer and consumers, which is good for the business. BNPL ensures steady cash flow even when the sales are down.
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The covid 19 pandemic increased unemployment rates and induced financial insecurity in the population. Pandemic induced lockdowns led to a change in consumer purchasing habits; consumers preferred purchases on credit, delayed payments, or small installments. These features allow the customers to spread on their expenses, which ensured financial security. The trend of deferred payments is anticipated to continue owing to interest-free repayment options, growing demand for high-end products by the millennial population, and an increasing number of retailers adopting the BNPL model.
As mentioned earlier, BNPL allows the consumer to purchase the item and pay for it in small installments over a period of time. The payment schedules are customized according to the purchased products. Defaulting on the payments attracts high late fees, which could hamper the growth of the market. BPNL has higher fees, 2%-6% of the purchased amount, making it a less attractive short-term financing option for customers with tight-monthly budgets. The short-term nature of BNPL payments does not help build the consumer's credit score. The perks attached to credit cards like cash backs and rewards are missing in the BNPL model.
Online shopping witnessed a significant due to the covid 19 induced lockdowns. Online platforms enabled convenient and no-contact shopping. All purchases were made through online platforms. Online platforms provide no EMI payment options on purchases above a certain amount. This BNPL model is native to the e-commerce industry. With the e-commerce boom, there was an increase in online shoppers for high-end products. Online platforms were taking away the market share of brick-and-mortar players. To compete with the online distributing platforms, a growing number of retailers are adopting the buy now pay later model. BNPL is helping them increase the customer base as more people can now buy those products that were earlier out of their budget. The increase in customers, in turn, increases the sales of the retailers and gives them a competitive advantage. This process helps build trust with the customer and retain them for a long time.
Integrating the BNPL model into the local checkout processes of the retailer requires specialized tools and technical expertise, which can be expensive. Small and medium retailers cannot afford the integration, leaving a potential customer base out of the market and hindering the market's growth.
The global buy now pays later market has been segmented based on channel type, enterprise type, application, and regions.
The regions analyzed for the market include North America, Europe, South America, Asia Pacific, the Middle East, and Africa. North America emerged as the largest market for the global buy now pay later market, with a 35.21% share of the market revenue in 2022.
North America region Buy Now Pay Later Market Share in 2022 - 35.21%
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The key players are now concentrating on implementing strategies such as adopting new technology, product innovations, mergers & acquisitions, joint venture, alliances, and partnerships to improve their market position in the global buy now pay later industry.
The buy now pay later market is growing extensively in India. BNPL is a well-established payment model in the clothing, travel & accommodation industries. Swiggy and Zomato, the prominent food delivery platforms, are exploring the application of BNPL in the food delivery market. With the extensive network of restaurants, the food delivery sector can provide lucrative opportunities for the BNPL market.
Report Description:
As per The Brainy Insights, the size of the buy now pay later market was valued at USD 7.34 billion in 2022 to USD 61.09 billion by 2032.
Global buy now pay later market is growing at a CAGR of 23.6% during the forecast period 2023-2032.
North America region emerged as the largest market for the buy now pay later.
The market's growth will be influenced by the rising demand for no EMI instalment-based payments.
High late fees on delayed payment could hamper the market growth.
Increasing adoption by retailers of buy now pay later will provide huge opportunities to the market.
The global buy now pay later market has been segmented based on channel type, enterprise type, application, and regions. The online segment led the market in 2022. The retail segment led the market in 2022.
Key players are Affirm, Afterpay, Klarna, LatitutePay, Openpay, PayPal, Prepay Inc., QuadPay Inc., Sizzle, and Splitit.
1. Introduction
1.1. Objectives of the Study
1.2. Market Definition
1.3. Research Scope
1.4. Currency
1.5. Key Target Audience
2. Research Methodology and Assumptions
3. Executive Summary
4. Premium Insights
4.1. Porter’s Five Forces Analysis
4.2. Value Chain Analysis
4.3. Top Investment Pockets
4.3.1. Market Attractiveness Analysis by Channel Type
4.3.2. Market Attractiveness Analysis by Enterprise Type
4.3.3. Market Attractiveness Analysis by Application
4.3.4. Market Attractiveness Analysis by Region
4.4. Industry Trends
5. Market Dynamics
5.1. Market Evaluation
5.2. Drivers
5.2.1. The rising demand for no EMI instalment-based payments
5.3. Restraints
5.3.1. High late fees on delayed repayment
5.4. Opportunities
5.4.1. Increasing adoption by retailers
5.5. Challenges
5.5.1. Integration of BNPL is expensive
6. Global Buy Now Pay Later Market Analysis and Forecast, By Channel Type
6.1. Segment Overview
6.2. Point-Of-Sales (POS)
6.3. Online
7. Global Buy Now Pay Later Market Analysis and Forecast, By Enterprise Type
7.1. Segment Overview
7.2. Large Enterprise
7.3. Small & Medium Enterprise
8. Global Buy Now Pay Later Market Analysis and Forecast, By Application
8.1. Segment Overview
8.2. Retail
8.3. Consumer Electronics
8.4. Healthcare
8.5. Leisure & Entertainment
8.6. Fashion & Garment
8.7. Others
9. Global Buy Now Pay Later Market Analysis and Forecast, By Regional Analysis
9.1. Segment Overview
9.2. North America
9.2.1. U.S.
9.2.2. Canada
9.2.3. Mexico
9.3. Europe
9.3.1. Germany
9.3.2. France
9.3.3. U.K.
9.3.4. Italy
9.3.5. Spain
9.4. Asia-Pacific
9.4.1. Japan
9.4.2. China
9.4.3. India
9.5. South America
9.5.1. Brazil
9.6. Middle East and Africa
9.6.1. UAE
9.6.2. South Africa
10. Global Buy Now Pay Later Market-Competitive Landscape
10.1. Overview
10.2. Market Share of Key Players in the Buy Now Pay Later Market
10.2.1. Global Company Market Share
10.2.2. North America Company Market Share
10.2.3. Europe Company Market Share
10.2.4. APAC Company Market Share
10.3. Competitive Situations and Trends
10.3.1. Product Launches and Developments
10.3.2. Partnerships, Collaborations, and Agreements
10.3.3. Mergers & Acquisitions
10.3.4. Expansions
11. Company Profiles
11.1. Affirm
11.1.1. Business Overview
11.1.2. Company Snapshot
11.1.3. Company Market Share Analysis
11.1.4. Company Product Portfolio
11.1.5. Recent Developments
11.1.6. SWOT Analysis
11.2. Afterpay
11.2.1. Business Overview
11.2.2. Company Snapshot
11.2.3. Company Market Share Analysis
11.2.4. Company Product Portfolio
11.2.5. Recent Developments
11.2.6. SWOT Analysis
11.3. Klarna
11.3.1. Business Overview
11.3.2. Company Snapshot
11.3.3. Company Market Share Analysis
11.3.4. Company Product Portfolio
11.3.5. Recent Developments
11.3.6. SWOT Analysis
11.4. LatitudePay
11.4.1. Business Overview
11.4.2. Company Snapshot
11.4.3. Company Market Share Analysis
11.4.4. Company Product Portfolio
11.4.5. Recent Developments
11.4.6. SWOT Analysis
11.5. Openpay
11.5.1. Business Overview
11.5.2. Company Snapshot
11.5.3. Company Market Share Analysis
11.5.4. Company Product Portfolio
11.5.5. Recent Developments
11.5.6. SWOT Analysis
11.6. PayPal
11.6.1. Business Overview
11.6.2. Company Snapshot
11.6.3. Company Market Share Analysis
11.6.4. Company Product Portfolio
11.6.5. Recent Developments
11.6.6. SWOT Analysis
11.7. Prepay Inc.
11.7.1. Business Overview
11.7.2. Company Snapshot
11.7.3. Company Market Share Analysis
11.7.4. Company Product Portfolio
11.7.5. Recent Developments
11.7.6. SWOT Analysis
11.8. QuadPay Inc.
11.8.1. Business Overview
11.8.2. Company Snapshot
11.8.3. Company Market Share Analysis
11.8.4. Company Product Portfolio
11.8.5. Recent Developments
11.8.6. SWOT Analysis
11.9. Sizzle
11.9.1. Business Overview
11.9.2. Company Snapshot
11.9.3. Company Market Share Analysis
11.9.4. Company Product Portfolio
11.9.5. Recent Developments
11.9.6. SWOT Analysis
11.10. Splitit
11.10.1. Business Overview
11.10.2. Company Snapshot
11.10.3. Company Market Share Analysis
11.10.4. Company Product Portfolio
11.10.5. Recent Developments
11.10.6. SWOT Analysis
List of Table
1. Global Buy Now Pay Later Market, By Channel Type, 2019-2032 (USD Billion)
2. Global Point-Of-Sales (POS) Buy Now Pay Later Market, By Region, 2019-2032 (USD Billion)
3. Global Online Buy Now Pay Later Market, By Region, 2019-2032 (USD Billion)
4. Global Buy Now Pay Later Market, By Enterprise Type, 2019-2032 (USD Billion)
5. Global Large Enterprise Buy Now Pay Later Market, By Region, 2019-2032 (USD Billion)
6. Global Small & Medium Enterprise Buy Now Pay Later Market, By Region, 2019-2032 (USD Billion)
7. Global Buy Now Pay Later Market, By Application, 2019-2032 (USD Billion)
8. Global Retail Buy Now Pay Later Market, By Region, 2019-2032 (USD Billion)
9. Global Consumer Electronics Buy Now Pay Later Market, By Region, 2019-2032 (USD Billion)
10. Global Healthcare Buy Now Pay Later Market, By Region, 2019-2032 (USD Billion)
11. Global Leisure & Entertainment Buy Now Pay Later Market, By Region, 2019-2032 (USD Billion)
12. Global Fashion & Garment Buy Now Pay Later Market, By Region, 2019-2032 (USD Billion)
13. Global Others Buy Now Pay Later Market, By Region, 2019-2032 (USD Billion)
14. Global Buy Now Pay Later Market, By Region, 2019-2032 (USD Billion)
15. North America Buy Now Pay Later Market, By Channel Type, 2019-2032 (USD Billion)
16. North America Buy Now Pay Later Market, By Enterprise Type, 2019-2032 (USD Billion)
17. North America Buy Now Pay Later Market, By Application, 2019-2032 (USD Billion)
18. U.S. Buy Now Pay Later Market, By Channel Type, 2019-2032 (USD Billion)
19. U.S. Buy Now Pay Later Market, By Enterprise Type, 2019-2032 (USD Billion)
20. U.S. Buy Now Pay Later Market, By Application, 2019-2032 (USD Billion)
21. Canada Buy Now Pay Later Market, By Channel Type, 2019-2032 (USD Billion)
22. Canada Buy Now Pay Later Market, By Enterprise Type, 2019-2032 (USD Billion)
23. Canada Buy Now Pay Later Market, By Application, 2019-2032 (USD Billion)
24. Mexico Buy Now Pay Later Market, By Channel Type, 2019-2032 (USD Billion)
25. Mexico Buy Now Pay Later Market, By Enterprise Type, 2019-2032 (USD Billion)
26. Mexico Buy Now Pay Later Market, By Application, 2019-2032 (USD Billion)
27. Europe Buy Now Pay Later Market, By Channel Type, 2019-2032 (USD Billion)
28. Europe Buy Now Pay Later Market, By Enterprise Type, 2019-2032 (USD Billion)
29. Europe Buy Now Pay Later Market, By Application, 2019-2032 (USD Billion)
30. Germany Buy Now Pay Later Market, By Channel Type, 2019-2032 (USD Billion)
31. Germany Buy Now Pay Later Market, By Enterprise Type, 2019-2032 (USD Billion)
32. Germany Buy Now Pay Later Market, By Application, 2019-2032 (USD Billion)
33. France Buy Now Pay Later Market, By Channel Type, 2019-2032 (USD Billion)
34. France Buy Now Pay Later Market, By Enterprise Type, 2019-2032 (USD Billion)
35. France Buy Now Pay Later Market, By Application, 2019-2032 (USD Billion)
36. U.K. Buy Now Pay Later Market, By Channel Type, 2019-2032 (USD Billion)
37. U.K. Buy Now Pay Later Market, By Enterprise Type, 2019-2032 (USD Billion)
38. U.K. Buy Now Pay Later Market, By Application, 2019-2032 (USD Billion)
39. Italy Buy Now Pay Later Market, By Channel Type, 2019-2032 (USD Billion)
40. Italy Buy Now Pay Later Market, By Enterprise Type, 2019-2032 (USD Billion)
41. Italy Buy Now Pay Later Market, By Application, 2019-2032 (USD Billion)
42. Spain Buy Now Pay Later Market, By Channel Type, 2019-2032 (USD Billion)
43. Spain Buy Now Pay Later Market, By Enterprise Type, 2019-2032 (USD Billion)
44. Spain Buy Now Pay Later Market, By Application, 2019-2032 (USD Billion)
45. Asia Pacific Buy Now Pay Later Market, By Channel Type, 2019-2032 (USD Billion)
46. Asia Pacific Buy Now Pay Later Market, By Enterprise Type, 2019-2032 (USD Billion)
47. Asia Pacific Buy Now Pay Later Market, By Application, 2019-2032 (USD Billion)
48. Japan Buy Now Pay Later Market, By Channel Type, 2019-2032 (USD Billion)
49. Japan Buy Now Pay Later Market, By Enterprise Type, 2019-2032 (USD Billion)
50. Japan Buy Now Pay Later Market, By Application, 2019-2032 (USD Billion)
51. China Buy Now Pay Later Market, By Channel Type, 2019-2032 (USD Billion)
52. China Buy Now Pay Later Market, By Enterprise Type, 2019-2032 (USD Billion)
53. China Buy Now Pay Later Market, By Application, 2019-2032 (USD Billion)
54. India Buy Now Pay Later Market, By Channel Type, 2019-2032 (USD Billion)
55. India Buy Now Pay Later Market, By Enterprise Type, 2019-2032 (USD Billion)
56. India Buy Now Pay Later Market, By Application, 2019-2032 (USD Billion)
57. South America Buy Now Pay Later Market, By Channel Type, 2019-2032 (USD Billion)
58. South America Buy Now Pay Later Market, By Enterprise Type, 2019-2032 (USD Billion)
59. South America Buy Now Pay Later Market, By Application, 2019-2032 (USD Billion)
60. Brazil Buy Now Pay Later Market, By Channel Type, 2019-2032 (USD Billion)
61. Brazil Buy Now Pay Later Market, By Enterprise Type, 2019-2032 (USD Billion)
62. Brazil Buy Now Pay Later Market, By Application, 2019-2032 (USD Billion)
63. Middle East and Africa Buy Now Pay Later Market, By Channel Type, 2019-2032 (USD Billion)
64. Middle East and Africa Buy Now Pay Later Market, By Enterprise Type, 2019-2032 (USD Billion)
65. Middle East and Africa Buy Now Pay Later Market, By Application, 2019-2032 (USD Billion)
66. UAE Buy Now Pay Later Market, By Channel Type, 2019-2032 (USD Billion)
67. UAE Buy Now Pay Later Market, By Enterprise Type, 2019-2032 (USD Billion)
68. UAE Buy Now Pay Later Market, By Application, 2019-2032 (USD Billion)
69. South Africa Buy Now Pay Later Market, By Channel Type, 2019-2032 (USD Billion)
70. South Africa Buy Now Pay Later Market, By Enterprise Type, 2019-2032 (USD Billion)
71. South Africa Buy Now Pay Later Market, By Application, 2019-2032 (USD Billion)
List of Figures
1. Global Buy Now Pay Later Market Segmentation
2. Buy Now Pay Later Market: Research Methodology
3. Market Size Estimation Methodology: Bottom-Up Approach
4. Market Size Estimation Methodology: Top-Down Approach
5. Data Triangulation
6. Porter’s Five Forces Analysis
7. Value Chain Analysis
8. Global Buy Now Pay Later Market Attractiveness Analysis by Channel Type
9. Global Buy Now Pay Later Market Attractiveness Analysis by Enterprise Type
10. Global Buy Now Pay Later Market Attractiveness Analysis by Application
11. Global Buy Now Pay Later Market Attractiveness Analysis by Region
12. Global Buy Now Pay Later Market: Dynamics
13. Global Buy Now Pay Later Market Share by Channel Type (2023 & 2032)
14. Global Buy Now Pay Later Market Share by Enterprise Type (2023 & 2032)
15. Global Buy Now Pay Later Market Share by Application (2023 & 2032)
16. Global Buy Now Pay Later Market Share by Regions (2023 & 2032)
17. Global Buy Now Pay Later Market Share by Company (2022)
This study forecasts revenue at global, regional, and country levels from 2019 to 2032. The Brainy Insights has segmented the global buy now pay later market based on below mentioned segments:
Global Buy Now Pay Later Market By Channel Type:
Global Buy Now Pay Later Market By Enterprise Type:
Global Buy Now Pay Later Market By Application:
Global Buy Now Pay Later Market by Region:
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