Buy Now Pay Later Market

Global Buy Now Pay Later Market is valued at USD 125.09 Billion in 2021 and expected to reach USD 1582.73 Billion by 2028 with a CAGR of 43.70% over the forecast period.

Scope of Global Buy Now Pay Later Market

Customers may make purchases both online and in-person using the Buy Now Pay Later (BNPL) payment without being required to pay the whole transaction price up advance. The industry is expanding as a result of factors including digitalization, rising merchant acceptance, rising repeat use among younger customers, and the entry of new firms providing BNPL services for lending. Younger customers like utilizing BNPL services since they may purchase expensive computers and cell phones and make payments for stationery items, among other advantages. Retailers are increasingly offering "buy now, pay later" solutions that allow consumers to purchase essentials by choosing a responsible financing plan and making payments gradually instead of all at once. The usage of the buy now pay later payment platform by multiple company owners globally to finance large equipment, acquire raw materials, and pay employee wages is what propels the market's global growth. The buy now pay later payment system is also being used by more young people since it offers a number of benefits over other payment options, including the opportunity to pay for pricey things like computers and cell phones as well as classroom supplies and cafeteria expenses.

The COVID-19 effect has caused the demand for services to soar throughout the forecasttimeframe. The banking and medical insurance sector services' notable acceleration is mostly to blame for the increase that is above average. Compared to 2019, the purchase now pay later market saw a staggering growth rate in 2020. The increase in the popularity of online shopping and the expanding e-commerce sales of retail and consumer electronics goods are credited with this boom. The United Nations Conference on Trade and Development (UNCTAD) estimates that in 2020, e-commerce sales of retail goods would rise from 16% to 19%. Additionally, customers' preferences for internet buying have grown globally throughout the epidemic. Due to the pandemic, more consumers are turning to online e-commerce channels, which has prompted various businesses to join the online market. A number of major firms have finished their investments throughout the pandemic by implementing different business plans, product launches, and alliances. For instance, the BNPL service "postpe" was introduced by the Indian fintech business BharatPe in October 2021 for its users. On its BPNL postpe app, the business sought to make a loan of about USD 300 million possible.

The global Buy Now Pay Later market is segmented based on the channel, enterprise size, end-use, and region & country level. Based on the channel, the global Buy Now Pay Later market is segmented into online and POS. By enterprise size, the market is segmented into Large Enterprises and Small & Medium Enterprises. By end-use, the global Buy Now Pay Later market is segmented into consumer electronics, fashion & garment, healthcare, leisure & entertainment, retail, and others.

The regions covered in the global Buy Now Pay Later market report are North America, Europe, Asia-Pacific, Latin America, and the rest of the World. Based on country level, the market of global Buy Now Pay Later is sub-divided into U.S., Mexico, Canada, U.K., France, Germany, China, Italy, India, Japan, Southeast Asia, Middle East Asia (Saudi Arabia, UAE, Egypt) GCC, Africa, etc.

Global Buy Now Pay Later Market Segmentation

By Channel:

• Online
• POS

By Enterprise Size:

• Large Enterprises
• Small & Medium Enterprises

By End-Use:

• Consumer Electronics
• Fashion & Garment
• Healthcare
• Leisure & Entertainment
• Retail
• Others

Key Players of Global Buy Now Pay Later Market

Some major key players for the global Buy Now Pay Later market report cover prominent players like

• Afterpay Ltd
• Affirm Inc
• Klarna Bank AB
• Amazon Payments, Inc
• PayPal Holdings Inc
• Mastercard Inc
• Splitit Payment Ltd
• Sezzle Inc
• Visa Inc
• Zip Co Ltd.

News

New PayPal cashback commercial credit card launches for US

On June 28^th, 2022; PayPal Holdings Inc. launched a new credit card to its lineup of credit services to better meet the recurring financial needs of small company owners. The PayPal Business Reward Mastercard, which is issued by WebBank and backed by the Mastercard system, is the first corporate credit card offered via PayPal. The card is among the top cashback rewards alternatives since it has no annual fee and gives 2% cashback on all purchases with no caps on the amount that can be earned or expiry dates.

PayPal Announces 'Pay Monthly' to Give Consumers More Choice at Checkout

On June 15^th, 2022; PayPal Holdings, Inc. introduced PayPal Pay Monthly, the newest buy-now, pay-later offering from WebBank. It allows  American customers to stretch out payments across longer time frames. Through Pay Monthly, customers can get  access to a brand-new PayPal product that offers them additional flexibility and financing alternatives for the things they need and desire.

To provide customers with more intelligent ways to shop and control their finances, Affirm has released a superapp and browser extension.

On January 26^th, 2022; Two important product suites were introduced by Affirm Holdings Inc., a BNPL service provider for customers: the Affirm SuperApp and Chrome browser extensions. SuperApp is a simple-to-use platform that combines powerful BNPL solutions for shopping, payments, and financial services.

Increasing number of internet users, numerous benefits offered by BNPL, and the growing repeat usage among younger consumers platforms are some of the major factors driving the growth of the Global Buy Now Pay Later Market Growth

The worldwide market for point of sale installment loans with purchase now, pay later has grown as a result of the rising  acceptance of online payment across a variety of sectors, including health insurance, retail & consumer goods, banking, and others. The United Nations Conference on Trade and Development (UNCTAD) estimates that by the year 2020, more than 80% of customers worldwide would have made purchases online using a digital method of payment. Additionally, there was a huge demand for BNPL services in 2021 due to the global rise in e-commerce sales. The Census Governmental Agency estimates that retail e-commerce sales in the United States hit USD 204.6 billion in the third quarter of 2021.

Service providers may improve their decision-making skills and build models in real-time with the use of artificial intelligence (AI) and machine learning technology. Specialized AI-based models are being developed by a number of industry players to speed up consumer market penetration. For instance, in January 2022, the financial software provider Temenos launched a BNPL banking service based on AI inside the Temenos Banking Cloud platform. The platform is based on AI technology and provides opportunities for consumers and merchants via alternative credit options. The increasing use of A.I. technology to expand the real-time customer base will drive the worldwide market trend.

Customers wishing to make purchases may choose from solutions with a predetermined payment plan, a streamlined checkout procedure, no interest, and quick approval times via BNPL services. Customers utilize BNPL services all throughout the world to avoid paying interest charges, make impulsive purchases, and borrow the money without running a credit check. In January 2022, a ZestMoney poll revealed that BNPL had become the favorite option for customers across all age categories in 2021, with the youngest customer being 18 and the eldest being 66. The poll also revealed that males from tier 1 and tier 2 cities spent a lot on leisure and fashion, while women from tier 1 and tier 2 cities invested in edtech upgrades for gadgets and upskilling.

There are many further options, such as credit cards, postdated checks, financing via debit cards, etc. Brazil, India, and other rising countries all lack awareness of the BNPL service among consumers and merchants. Credit scores should also be examined before providing BNPL services to clients. The program provides consumers easy monthly installment payment arrangements via BNPL. Overall expansion is hampered by the availability of a wide range of payment options and the ignorance of customers, retailers, and merchants.

North America is Expected to Capture a Major Share in the Global Buy Now Pay Later Market

Geographically, North America is anticipated to lead the global Buy Now Pay Later market during the projected period due to its thriving start-up ecosystem and increased investment in R&D activities. Increased use of this service by returning customers helps the purchase now pay later industry expand. The presence and investments made by significant businesses including PayPal, Affirm Holdings, Inc., Sezzle, Quadpay, and others have contributed to the region's development. As an example, American theme park and entertainment company SeaWorld Parks & Entertainment, Inc. partnered with Uplift, Inc., a provider of BNPL solutions, in September 2021. Through this partnership, Uplift, Inc. offered its BNPL payment alternatives for hotel bookings at SeaWorld Orlando, SeaWorld San Antonio, and SeaWorld San Diego.

Europe is the third-largest area as a result of the internet consumers' quick acceptance of the services. According to the World Pay research, the purchase now, pay later fintech sector, which includes businesses like Klarna, Affirm, Afterpay, and others, is expanding at a pace of 39% annually in the United Kingdom. various companies are expanding acroos Germany, France, the United Kingdom, and other European countries. For instance, in January 2022, PayPal launched its Pay in 30 Days buy-now and pay-later service in Germany. Without paying any extra fees, service users are permitted to spend up to USD 1,115.0 in 30 days.

By Regional & Country Level:

North America

• U.S.
• Canada

Europe

• U.K
• France
• Germany
• Italy

Asia Pacific

• China
• Japan
• India
• Southeast Asia

Latin America

• Brazil
• Mexico

Middle East and Africa

• GCC
• Africa
• Rest of Middle East and Africa

Report Analysis	Details
Historical data	2018 - 2021
Forecast Period	2022 - 2028
Market Size in 2021:	USD 125.09 Billion
Base year considered	2021
Forecast Period CAGR %:	43.70%
Market Size Expected in 2028:	USD 1582.73 Billion
Tables, Charts & Figures:	175
Pages	200
Key Players/Companies	Afterpay Ltd, Affirm Inc, Klarna Bank AB, Amazon Payments, PayPal Holdings Inc, Mastercard Inc, Splitit Payment Ltd, Sezzle Inc, Visa Inc, Zip Co Inc
Segments Covered	Channel, By Enterprise Size, By End-Use
Regional Analysis	North America, U.S., Mexico, Canada, Europe, UK, France, Germany, Italy, Asia Pacific, China, Japan, India, Southeast Asia, South America, Brazil, Argentina, Columbia, The Middle East and Africa, GCC, Africa, Rest of the Middle East and Africa