Buy Now Pay Later Market Size, Share & Trends Report, 2022-2030
The global buy now pay later market size was estimated at US$ 125.09 billion in 2021 and is expected to hit around US$ 3268.26 billion by 2030, poised to grow at a CAGR of 43.8% during the forecast period 2022 to 2030
Growth Factors:
Buy Now Pay Later (BNPL) is a payment option that allows customers to make purchases online and at stores without having to pay the complete amount upfront. Factors fueling the growth of the market include digitization, increasing merchant adoption, the growing repeat usage among younger consumers, and the introduction of new players offering lending through BNPL services. Younger consumers prefer using BNPL services as it provides several benefits, such as buying high-cost laptops and smartphones and making payments for stationery products.
Numerous players are focusing on developing and launching an interest-free BNPL installment solution that enables the customer to pay in installments. Such product launches are aimed to provide a better customer experience to the customers. For instance, in August 2020, PayPal Holdings, Inc. announced the launch of its interest-free buys now pay later installment solution called Pay in 4. This solution enables partners and merchants to get paid upfront while enabling customers to pay for purchases ranging from USD 30 to USD 600 over six weeks. Through this launch, the company expanded its product portfolio.
BNPL services offer a fixed payment schedule, simplified checkout process, zero interest, and fast approval options to customers looking to make purchases. Consumers across the globe use BNPL services to avoid paying credit card interest, make purchases that don’t fit in their budget and borrow money without a credit check. According to a survey by ZestMoney, in January 2022, BNPL emerged as the preferred solution for people across different age groups in 2021, with the youngest consumer being 18 years old and the oldest at 66. The survey also found that men from tier 1 and 2 cities spent heavily on lifestyle and fashion, and women from tier 1 and 2 cities spent on upgrading their edtech courses for upskilling and electronics.
Scope of the Buy Now Pay Later Market Report
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Report Coverage |
Details |
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Market Size |
US$ 3268.26 Billion by 2030 |
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Growth Rate |
CAGR of 43.8% from 2022 to 2030 |
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Base Year |
2021 |
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Largest Market |
North America |
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Fastest Growing Market |
Asia Pacific |
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Forecast Period |
2022 to 2030 |
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Segments Covered |
Channel, Enterprise Size, End Use, Region |
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Companies Mentioned |
Sezzle, Afterpay, Klarna Bank AB, Laybuy Group Holdings Limited, Quadpay, Splitit, Affirm Holdings Inc., Payl8r (Social Money Ltd.), PayPal Holdings Inc., Perpay |
Technological advancements coupled with the notable increase in internet penetration globally have enabled financial service providers to offer novel digital services to customers. The rising popularity of mobile-based apps for making payment transfers also propels the demand for internet banking. Moreover, the strong growth of the e-commerce sector has helped fintech companies to develop their footprints for BNPL solutions worldwide. For instance, the Amazon Pay Later services offered by Amazon.com, Inc., have more than two million users in India and have already been used by more than 10 million times since its launch in April 2020.
Higher smartphone adoption and the requirement for faster internet connectivity have propelled merchants and customers to receive and make payments via the digital platform. In addition, the BNPL platform also supports the QR-code option that allows the customers to scan the code and make respective payments. However, high late fees charged by BNPL service providers are expected to hinder the market growth over the forecast period. Moreover, credit providers and banks that offer BNPL services place charges on both the merchant and the customer.
Channel Insights
The online segment dominated the buy now pay later market and garnered revenue share of over 63.5% in 2020. Due to COVID-19 pandemic, the use of online sales channel is growing at a rapid pace. Thus, the concept of buy now pay later is trendy in online segment.
The point of sale (POS) segment is fastest growing segment of the buy now pay later market in 2020. To improve customer experience and develop their relationship with customers, many organizations around the world are focusing on giving point of sale (POS) buy now pay later financing solutions.
Enterprise Size Insights
In 2020, the large enterprises segment accounted largest revenue share 61% in 2020. The buy now pay later solution is extensively used by large enterprises since it provides clients with a flexible and inexpensive payment option for high value items. Customers are able to the purchase more things as a result of the simplicity of shopping, which increases sales.
The small and medium enterprises segment, on the other hand, is predicted to develop at the quickest rate in the future years. Small and medium enterprises all over the world are focusing on buy now pay later solutions to boost sales conversion rates. Furthermore, buy now pay later provides greater clarity by publicly disclosing all of its pricing and fees. Small and medium enterprises concentrate on expanding their customer base and enhancing their market position.
End Use Insights
The fashion and garment segment dominated the buy now pay later market in 2020 and has garnered 43.5% market share. The fashion and garment industries are flourishing at a steady rate. The customers enjoy huge number of discounts on products. If the customers are provided with the option buy now pay later, it has been observed that sales of fashion and garment sectors rise on a large scale.
The consumer electronics segment is fastest growing segment of the buy now pay later market in 2020. The consumer electronics are high range of products in the market. People prefer to buy consumer electronics with credit cards. But if consumers are given the solution of buy now pay later, then the market will boom. The reason behind is that consumers want to save compounding interest of credit cards. This will also save expense and hidden costs of consumers.
Regional Insights
The consumer electronics segment is anticipated to register a promising CAGR over the forecast period. The industry is witnessing an increasing adoption of BNPL payment methods as they offer a low-friction substitute to credit cards. Moreover, customers prefer BNPL payment methods in comparison to credit cards to avoid expensive compounding interest and hidden fees. Increasing awareness among consumer electronic providers about the flexible buy now pay later payment method is expected to drive the demand for BNPL services over the forecast period.
North America dominated the market in 2021 and accounted for the highest share of around 31 % of the global revenue. The regional market growth can be attributed to the presence of a large number of prominent players. Moreover, numerous fintech companies in this region are entering into a partnership with entertainment companies to offer BNPL services for booking hotels. For instance, in September 2021, Uplift, Inc., a BNPL solution provider, partnered with SeaWorld Parks & Entertainment, Inc., an American Theme Park, and entertainment company.
Through this partnership, Uplift, Inc. offered its BNPL payment options for booking hotels for SeaWorld San Antonio, SeaWorld Orlando, and SeaWorld San Diego. Asia Pacific is anticipated to record the fastest CAGR over the forecast period. BNPL trend is becoming popular across the region as it enables customers to access credit and defer payments. Moreover, the increase in uptake of BNPL solutions across the region has been fueled by millennial and Gen Z shoppers. The growing mobile internet penetration in the region is further expected to create growth opportunities for the regional market over the forecast period.
Some of the prominent players in the Buy Now Pay Later Market include:
Segments Covered in the Report
This research report offers market revenue, sales volume, production assessment and prognoses by classifying it on the basis of various aspects. Further, this research study investigates market size, production, consumption and its development trends at global, regional, and country level for the period of 2017 to 2030 and covers subsequent region in its scope:
By Channel
By Enterprise Size
By End Use
By Geography
North America
Europe
Asia Pacific
Latin America
Middle East & Africa (MEA)
Key Points Covered in Buy Now Pay Later Market Study:
Chapter 1. Introduction
1.1. Research Objective
1.2. Scope of the Study
1.3. Definition
Chapter 2. Research Methodology
2.1. Research Approach
2.2. Data Sources
2.3. Assumptions & Limitations
Chapter 3. Executive Summary
3.1. Market Snapshot
Chapter 4. Market Variables and Scope
4.1. Introduction
4.2. Market Classification and Scope
4.3. Industry Value Chain Analysis
4.3.1. Raw Material Procurement Analysis
4.3.2. Sales and Distribution Channel Analysis
4.3.3. Downstream Buyer Analysis
Chapter 5. COVID 19 Impact on Buy Now Pay Later Market
5.1. COVID-19 Landscape: Buy Now Pay Later Industry Impact
5.2. COVID 19 - Impact Assessment for the Industry
5.3. COVID 19 Impact: Global Major Government Policy
5.4. Market Trends and Opportunities in the COVID-19 Landscape
Chapter 6. Market Dynamics Analysis and Trends
6.1. Market Dynamics
6.1.1. Market Drivers
6.1.2. Market Restraints
6.1.3. Market Opportunities
6.2. Porter’s Five Forces Analysis
6.2.1. Bargaining power of suppliers
6.2.2. Bargaining power of buyers
6.2.3. Threat of substitute
6.2.4. Threat of new entrants
6.2.5. Degree of competition
Chapter 7. Competitive Landscape
7.1.1. Company Market Share/Positioning Analysis
7.1.2. Key Strategies Adopted by Players
7.1.3. Vendor Landscape
7.1.3.1. List of Suppliers
7.1.3.2. List of Buyers
Chapter 8. Global Buy Now Pay Later Market, By Channel
8.1. Buy Now Pay Later Market, by Channel Type, 2022-2030
8.1.1. Online
8.1.1.1. Market Revenue and Forecast (2019-2030)
8.1.2. Point of Sale (POS)
8.1.2.1. Market Revenue and Forecast (2019-2030)
Chapter 9. Global Buy Now Pay Later Market, By Enterprise Size
9.1. Buy Now Pay Later Market, by Enterprise Size, 2022-2030
9.1.1. Large Enterprises
9.1.1.1. Market Revenue and Forecast (2019-2030)
9.1.2. Small & Medium Enterprises
9.1.2.1. Market Revenue and Forecast (2019-2030)
Chapter 10. Global Buy Now Pay Later Market, By End User
10.1. Buy Now Pay Later Market, by End User, 2022-2030
10.1.1. Consumer Electronics
10.1.1.1. Market Revenue and Forecast (2019-2030)
10.1.2. Fashion & Garment
10.1.2.1. Market Revenue and Forecast (2019-2030)
10.1.3. Healthcare
10.1.3.1. Market Revenue and Forecast (2019-2030)
10.1.4. Leisure & Entertainment
10.1.4.1. Market Revenue and Forecast (2019-2030)
10.1.5. Retail
10.1.5.1. Market Revenue and Forecast (2019-2030)
10.1.6. Others
10.1.6.1. Market Revenue and Forecast (2019-2030)
Chapter 11. Global Buy Now Pay Later Market, Regional Estimates and Trend Forecast
11.1. North America
11.1.1. Market Revenue and Forecast, by Channel (2019-2030)
11.1.2. Market Revenue and Forecast, by Enterprise Size (2019-2030)
11.1.3. Market Revenue and Forecast, by End User (2019-2030)
11.1.4. U.S.
11.1.4.1. Market Revenue and Forecast, by Channel (2019-2030)
11.1.4.2. Market Revenue and Forecast, by Enterprise Size (2019-2030)
11.1.4.3. Market Revenue and Forecast, by End User (2019-2030)
11.1.5. Rest of North America
11.1.5.1. Market Revenue and Forecast, by Channel (2019-2030)
11.1.5.2. Market Revenue and Forecast, by Enterprise Size (2019-2030)
11.1.5.3. Market Revenue and Forecast, by End User (2019-2030)
11.2. Europe
11.2.1. Market Revenue and Forecast, by Channel (2019-2030)
11.2.2. Market Revenue and Forecast, by Enterprise Size (2019-2030)
11.2.3. Market Revenue and Forecast, by End User (2019-2030)
11.2.4. UK
11.2.4.1. Market Revenue and Forecast, by Channel (2019-2030)
11.2.4.2. Market Revenue and Forecast, by Enterprise Size (2019-2030)
11.2.4.3. Market Revenue and Forecast, by End User (2019-2030)
11.2.5. Germany
11.2.5.1. Market Revenue and Forecast, by Channel (2019-2030)
11.2.5.2. Market Revenue and Forecast, by Enterprise Size (2019-2030)
11.2.5.3. Market Revenue and Forecast, by End User (2019-2030)
11.2.6. France
11.2.6.1. Market Revenue and Forecast, by Channel (2019-2030)
11.2.6.2. Market Revenue and Forecast, by Enterprise Size (2019-2030)
11.2.6.3. Market Revenue and Forecast, by End User (2019-2030)
11.2.7. Rest of Europe
11.2.7.1. Market Revenue and Forecast, by Channel (2019-2030)
11.2.7.2. Market Revenue and Forecast, by Enterprise Size (2019-2030)
11.2.7.3. Market Revenue and Forecast, by End User (2019-2030)
11.3. APAC
11.3.1. Market Revenue and Forecast, by Channel (2019-2030)
11.3.2. Market Revenue and Forecast, by Enterprise Size (2019-2030)
11.3.3. Market Revenue and Forecast, by End User (2019-2030)
11.3.4. India
11.3.4.1. Market Revenue and Forecast, by Channel (2019-2030)
11.3.4.2. Market Revenue and Forecast, by Enterprise Size (2019-2030)
11.3.4.3. Market Revenue and Forecast, by End User (2019-2030)
11.3.5. China
11.3.5.1. Market Revenue and Forecast, by Channel (2019-2030)
11.3.5.2. Market Revenue and Forecast, by Enterprise Size (2019-2030)
11.3.5.3. Market Revenue and Forecast, by End User (2019-2030)
11.3.6. Japan
11.3.6.1. Market Revenue and Forecast, by Channel (2019-2030)
11.3.6.2. Market Revenue and Forecast, by Enterprise Size (2019-2030)
11.3.6.3. Market Revenue and Forecast, by End User (2019-2030)
11.3.7. Rest of APAC
11.3.7.1. Market Revenue and Forecast, by Channel (2019-2030)
11.3.7.2. Market Revenue and Forecast, by Enterprise Size (2019-2030)
11.3.7.3. Market Revenue and Forecast, by End User (2019-2030)
11.4. MEA
11.4.1. Market Revenue and Forecast, by Channel (2019-2030)
11.4.2. Market Revenue and Forecast, by Enterprise Size (2019-2030)
11.4.3. Market Revenue and Forecast, by End User (2019-2030)
11.4.4. GCC
11.4.4.1. Market Revenue and Forecast, by Channel (2019-2030)
11.4.4.2. Market Revenue and Forecast, by Enterprise Size (2019-2030)
11.4.4.3. Market Revenue and Forecast, by End User (2019-2030)
11.4.5. North Africa
11.4.5.1. Market Revenue and Forecast, by Channel (2019-2030)
11.4.5.2. Market Revenue and Forecast, by Enterprise Size (2019-2030)
11.4.5.3. Market Revenue and Forecast, by End User (2019-2030)
11.4.6. South Africa
11.4.6.1. Market Revenue and Forecast, by Channel (2019-2030)
11.4.6.2. Market Revenue and Forecast, by Enterprise Size (2019-2030)
11.4.6.3. Market Revenue and Forecast, by End User (2019-2030)
11.4.7. Rest of MEA
11.4.7.1. Market Revenue and Forecast, by Channel (2019-2030)
11.4.7.2. Market Revenue and Forecast, by Enterprise Size (2019-2030)
11.4.7.3. Market Revenue and Forecast, by End User (2019-2030)
11.5. Latin America
11.5.1. Market Revenue and Forecast, by Channel (2019-2030)
11.5.2. Market Revenue and Forecast, by Enterprise Size (2019-2030)
11.5.3. Market Revenue and Forecast, by End User (2019-2030)
11.5.4. Brazil
11.5.4.1. Market Revenue and Forecast, by Channel (2019-2030)
11.5.4.2. Market Revenue and Forecast, by Enterprise Size (2019-2030)
11.5.4.3. Market Revenue and Forecast, by End User (2019-2030)
11.5.5. Rest of LATAM
11.5.5.1. Market Revenue and Forecast, by Channel (2019-2030)
11.5.5.2. Market Revenue and Forecast, by Enterprise Size (2019-2030)
11.5.5.3. Market Revenue and Forecast, by End User (2019-2030)
Chapter 12. Company Profiles
12.1. Sezzle
12.1.1. Company Overview
12.1.2. Product Offerings
12.1.3. Financial Performance
12.1.4. Recent Initiatives
12.2. Afterpay
12.2.1. Company Overview
12.2.2. Product Offerings
12.2.3. Financial Performance
12.2.4. Recent Initiatives
12.3. Klarna Bank AB
12.3.1. Company Overview
12.3.2. Product Offerings
12.3.3. Financial Performance
12.3.4. Recent Initiatives
12.4. Laybuy Group Holdings Limited
12.4.1. Company Overview
12.4.2. Product Offerings
12.4.3. Financial Performance
12.4.4. Recent Initiatives
12.5. Quadpay
12.5.1. Company Overview
12.5.2. Product Offerings
12.5.3. Financial Performance
12.5.4. Recent Initiatives
12.6. Splitit
12.6.1. Company Overview
12.6.2. Product Offerings
12.6.3. Financial Performance
12.6.4. Recent Initiatives
12.7. Affirm Holdings Inc.
12.7.1. Company Overview
12.7.2. Product Offerings
12.7.3. Financial Performance
12.7.4. Recent Initiatives
12.8. Payl8r (Social Money Ltd.)
12.8.1. Company Overview
12.8.2. Product Offerings
12.8.3. Financial Performance
12.8.4. Recent Initiatives
12.9. PayPal Holdings Inc.
12.9.1. Company Overview
12.9.2. Product Offerings
12.9.3. Financial Performance
12.9.4. Recent Initiatives
12.10. Perpay
12.10.1. Company Overview
12.10.2. Product Offerings
12.10.3. Financial Performance
12.10.4. Recent Initiatives
Chapter 13. Research Methodology
13.1. Primary Research
13.2. Secondary Research
13.3. Assumptions
Chapter 14. Appendix
14.1. About Us
14.2. Glossary of Terms
Cross-segment Market Size and Analysis for
Mentioned Segments
Additional Company Profiles (Upto 5 With No Cost)
Additional Countries (Apart From Mentioned Countries)
Country/Region-specific Report
Go To Market Strategy
Region Specific Market DynamicsRegion Level Market Share Import Export AnalysisProduction AnalysisOthers