Buy Now Pay Later 2024 – What Comes Next?

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Published: July 05, 2024 Report Code: GDFS0510IA-ST

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Reasons to buy the ‘Buy Now Pay Later’ report:

  • Gain an understanding of the Buy Now Pay Later (BNPL) market and some of the key and niche players in the space.
  • Learn about the BNPL market size and its forecasted growth rate over the next few years.
  • Learn about key developments and challenges facing the market and its players.

How is our ‘Buy Now Pay Later’ report unique from other reports in the market?

  • This report provides an overview and analysis of the current state of the BNPL market.
  • It examines the market size on a global and country level and highlights some of the most prominent providers.
  • It examines challenges and high-profile failures in the space.
  • The report provides a forecast of global market size through to 2028f and discusses the key factors that will influence the BNPL space going forward.

We recommend this valuable source of information to anyone involved in:

  • ​BNPL Companies
  • ​Fintech Companies
  • ​Lending Companies/​Retail Banks
  • Banks/Financial Agencies
  • ​E-commerce Platforms
  • ​Consulting Firms
  • ​Private Equity Firms/​Venture Capitalist​
  • Financial Advisors and Consultants

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Buy Now Pay Later (BNPL) Market Report Overview

The buy now pay later (BNPL) market size was valued at $349.4 billion in gross merchandise value (GMV) in 2023. BNPL solutions allow consumers to defer payments for purchases, often without any interest charged. The market has witnessed exponential growth over the past few years, driven by changing consumer preferences, technological advancements, and the growing e-commerce market. As the market grows, new entrants such as banks and retailers are joining the space, either by developing their products or partnering with existing players.

The BNPL market is poised for further expansion as its customers are typically younger individuals with less disposable income, who need to spread their payments out to help manage cash flow. Going forward, the BNPL market will record a CAGR of more than 19% from 2023 to 2028f.

Buy Now Pay Later (BNPL) Market Outlook 2023-2028f ($ Billion)
Buy Now Pay Later (BNPL) Market Outlook 2023-2028f ($ Billion)Buy the Full Report for More Insights on the BNPL Market Revenue
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The buy now pay later (BNPL) 2024 report provides an overview of the BNPL model and discusses the current business landscape of the BNPL market. It further gives a comprehensive understanding of revenue growth through its market size forecasting up to 2028 and a historical overview of the BNPL market, including the regional demand outlook. Furthermore, the report gives an insight into the competitive landscape of the BNPL market through an overview of key BNPL players, including both pureplay BNPL firms and traditional financial services providers that are branching into the market.

Market Size (2023) $349.4 billion
CAGR (2023-2028f) >19%
Key Countries ·       The US

·       The UK

·       China

·       Germany

·       India

·       Japan
Key Companies ·       Klarna

·       PayPal

·       Affirm

·       Amazon Pay Later

·       Tabby

·       Hokodo

·       Bumper

·       Sunbit
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BNPL Market Dynamics

With over 2 billion BNPL transactions in 2023, the usage of BNPL services has surged exponentially in recent years. While these services are mostly used online with e-commerce platforms, BNPL schemes have been expanding in physical stores too using QR codes and one-time virtual cards.

A few of the leading factors resulting in this stark rise of BNPL transaction volumes are the explosion of the e-commerce market and growing technological advancements. The BNPL sector has significantly benefitted from the rapid growth of the e-commerce market worldwide. While this sector has been growing over the past few years, the COVID-19 pandemic accelerated the momentum as consumers and businesses were forced to change their shopping habits. Cashing on the opportunity, BNPL service provided a flexible payment option for shoppers who may not be able to afford to pay for their cart in a single payment, therefore improving conversion rates.

Technological advancements also have played a crucial role in increasing the popularity of BNPL services for several reasons. The seamless integration of BNPL services into e-commerce platforms has made it extremely convenient for consumers to use this payment method at checkout without adding extra steps. Furthermore, the proliferation of smartphones and mobile apps allows the consumer to view and manage their installments and track their spending from their phones.

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BNPL Market Segmentation by Key Countries

China, Germany, India, Japan, the UK, and the US were the major markets with over 100 million BNPL transactions in 2023. The US was the largest BNPL market by value globally in 2023, primarily due to the sheer size of the US e-commerce market. Moreover, banks that offer BNPL solutions are more popular with US consumers as they allow customers to retroactively split their purchases into installments.

BNPL Market Analysis by Key Countries, 2023 (%)
BNPL Market Analysis by Key Countries, 2023 (%) Buy the Full Report for More Country-Wise BNPL Market Analysis,
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BNPL Market – Competitive Landscape

The BNPL market has a few noteworthy firms that are redefining consumer payments. The combination of rapid growth during the COVID-19 pandemic and the largely deregulated state of BNPL subsequently led to a flood of new entrants into the market. Traditional banks and financial institutions also began taking notice of the rising popularity of BNPL among consumers, prompting them to develop their solutions.

The leading pureplay BNPL providers include:

  • Klarna
  • Afterpay
  • Affirm
  • Walmart’s One
  • Tabby

A few of the leading niche BNPL providers include:

  • Hokodo
  • Bumper
  • Sunbit

A few of the leading banks and other financial service providers offering BNPL solutions include:

  • PayPal
  • HSBC
  • Citi
  • JPMorgan Chase
  • CommBank
  • Monzo

Leading BNPL Providers
Leading BNPL ProvidersBuy the Full Report for More Information on the Leading BNPL Companies,
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BNPL Market – Future Outlook

The BNPL market will continue growing throughout the forecast period, with the Middle East and North Africa, and South and Central America being the fastest-growing markets.

One of the most significant shifts that will affect the BNPL market in the coming years is increased regulatory oversight. As the market grows globally, there will be an ever-increasing focus on protecting consumer well-being. New rules and regulations will come into force, mandating credit checks, clearer disclosures around BNPL firms, and caps on late fees. For instance, in March 2024, the Australian government released draft legislation that proposes to amend the current regulatory framework to include BNPL products and other low-cost credit contracts. This legislation would require BNPL firms to hold an Australian credit license.

Advancements in technology will further refine BNPL offerings and operations. Enhanced data analytics will improve credit risk models, allowing BNPL firms to offer personalized terms and manage their credit risk more effectively. It will also feed into a hyper-personalized user experience as BNPL firms try to increase customer engagement and reduce churn.

Additionally, BNPL providers will likely evolve to offer a broader variety of financial products such as savings and transaction accounts, personal loans, and insurance. For instance, Apple launched Apple Pay Later in March 2023 for US customers, allowing them to split purchases into four payments with no interest or fees. These BNPL loans can be used for online and in-app purchases and make the checkout process extremely efficient.

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Key Highlights

  • The global BNPL market is expected to have generated $349.4 billion in gross merchandise value (GMV) in 2023 and record a compound annual growth rate of over 19% between 2023 and 2028f.

  • BNPL customers are typically younger, with less disposable income and multiple sources of debt.

  • The US has the largest BNPL market by value, while China is the largest market by volume.

  • Sweden has the highest BNPL penetration rate. BNPL accounts for the majority of all e-commerce sales in the country.

Klarna
Affirm
Afterpay
Apple
Tabby
Walmart
Laybuy
Bumper
Amazon
PayPal
Hokodo
Sunbit
Uplift
H&M
HSBC
Citi
JPMorgan Chase
Venmo
Block
Cash App
Expedia

Table of Contents

  • 1. Executive Summary

  • 1.1 Market overview

  • 1.2 Key findings

  • 1.3 Critical success factors

  • 2. The Buy Now Pay Later Model

  • 2.1 The BNPL participants

  • 2.2 Online vs. in-store BNPL

  • 2.3 BNPL interfaces

  • 3. The Global BNPL Market

  • 3.1 BNPL popularity has surged due to a number of factors

  • 3.2 A closer look at BNPL customers

  • 4. BNPL Markets Around the World

  • 4.1 US

  • 4.2 UK

  • 4.3 Sweden

  • 4.4 India

  • 5. BNPL Players

  • 5.1 Pureplay BNPL

  • 5.2 BNPL offerings from other financial services providers

  • 5.3 Retailers

  • 5.4 BNPL failures and challenges

  • 6. The Future of the Buy Now Pay Later Industry

  • 6.1 BNPL regulation will be in the spotlight

  • 6.2 BNPL firms will continue exploring new industries and customers

  • 6.3 More technological innovation

  • 6.4 Expansion into traditional financial services

  • 6.5 There will be more tinkering with customer loyalty

  • 7. Appendix

  • 7.1 Abbreviations, acronyms, and initialisms

  • 7.2 Methodology

  • 7.3 Secondary sources

  • Buy Now Pay Later 2024: What Comes Next?

  • 7.4 Further reading

  • About GlobalData

  • Contact Us

Table

Table 1 Key Trends Overview

Table 2 Global Buy Now Pay Later (BNPL) Market By Spend Category, 2019 – 2026 ($M)

Table 3 North America Buy Now Pay Later (BNPL) Market By Spend Category, 2019 – 2026 ($M)

Table 4 US Buy Now Pay Later (BNPL) Market By Spend Category, 2019 – 2026 ($M)

Table 5 Canada Buy Now Pay Later (BNPL) Market By Spend Category, 2019 – 2026 ($M)

Table 6 Europe Buy Now Pay Later (BNPL) Market By Spend Category, 2019 – 2026 ($M)

Table 7 Germany Buy Now Pay Later (BNPL) Market By Spend Category, 2019 – 2026 ($M)

Table 8 UK Buy Now Pay Later (BNPL) Market By Spend Category, 2019 – 2026 ($M)

Table 9 France Buy Now Pay Later (BNPL) Market By Spend Category, 2019 – 2026 ($M)

Table 10 Italy Buy Now Pay Later (BNPL) Market By Spend Category, 2019 – 2026 ($M)

Table 11 Spain Buy Now Pay Later (BNPL) Market By Spend Category, 2019 – 2026 ($M)

Table 12 Netherlands Buy Now Pay Later (BNPL) Market By Spend Category, 2019 – 2026 ($M)

Table 13 Rest of Europe Buy Now Pay Later (BNPL) Market By Spend Category, 2019 – 2026 ($M)

Table 14 South & Central America Buy Now Pay Later (BNPL) Market By Spend Category, 2019 – 2026 ($M)

Table 15 Brazil Buy Now Pay Later (BNPL) Market By Spend Category, 2019 – 2026 ($M)

Table 16 Mexico Buy Now Pay Later (BNPL) Market By Spend Category, 2019 – 2026 ($M)

Table 17 Argentina Buy Now Pay Later (BNPL) Market By Spend Category, 2019 – 2026 ($M)

Table 18 Rest of South & Central America Buy Now Pay Later (BNPL) Market By Spend Category, 2019 – 2026 ($M)

Table 19 Asia Pacific Buy Now Pay Later (BNPL) Market By Spend Category, 2019 – 2026 ($M)

Table 20 China Buy Now Pay Later (BNPL) Market By Spend Category, 2019 – 2026 ($M)

Table 21 India Buy Now Pay Later (BNPL) Market By Spend Category, 2019 – 2026 ($M)

Table 22 Japan Buy Now Pay Later (BNPL) Market By Spend Category, 2019 – 2026 ($M)

Table 23 Australia Buy Now Pay Later (BNPL) Market By Spend Category, 2019 – 2026 ($M)

Table 24 Rest of Asia Pacific Buy Now Pay Later (BNPL) Market By Spend Category, 2019 – 2026 ($M)

Table 25 Middle East & Africa Buy Now Pay Later (BNPL) Market By Spend Category, 2019 – 2026 ($M)

Table 26 UAE Buy Now Pay Later (BNPL) Market By Spend Category, 2019 – 2026 ($M)

Table 27 Saudi Arabia Buy Now Pay Later (BNPL) Market By Spend Category, 2019 – 2026 ($M)

Table 28 Turkey Buy Now Pay Later (BNPL) Market By Spend Category, 2019 – 2026 ($M)

Table 29 Rest of Middle East & Africa Buy Now Pay Later (BNPL) Market By Spend Category, 2019 – 2026 ($M)

Figures

Fig.1 BNPL Market Snapshot

Fig.2 BNPL Sector Overview

Fig.3 Buy Now Pay Later (BNPL) Market Segmentation

Fig.4 BNPL Industry value chain analysis

Fig.5 BNPL Lending: Leaders & Disruptors

Fig.6 Open Banking: Leaders & Disruptors

Fig.7 Security Provider: Leaders & Disruptors

Fig.8 Credit Bureaus: Leaders & Disruptors

Fig.9 Global Buy Now Pay Later (BNPL) PORTER’s Five Force Analysis

Fig.10 Buy Now Pay Later (BNPL) Market – Key Drivers Impact Analysis

Fig.11 Buy Now Pay Later (BNPL)– Key Market Challenges/Impediments Impact Analysis

Fig.12 Buy Now Pay Later (BNPL)– M&A Activity Dashboard

Fig.13 Buy Now Pay Later (BNPL)– Patent Activity Dashboard

Fig.14 Buy Now Pay Later (BNPL)– Job Analytics Dashboard

Fig.15 BNPL– Venture Financing Dashboard

Fig.16 Buy Now Pay Later (BNPL)– Social Media Analytics Dashboard

Fig.17 Global Buy Now Pay Later (BNPL) Market – Revenue Opportunity Forecast, 2019-2026 ($ Million)

Fig.18 Global Buy Now Pay Later (BNPL) Market By Spend Category, 2019-2026 ($ Million)

Fig.19 Buy Now Pay Later (BNPL)– Market Overview

Fig.20 North America Buy Now Pay Later (BNPL) Market Snapshot

Fig.21 North America Buy Now Pay Later (BNPL) Market By Spend Category Share – 2021 & 2026 (%)

Fig.22 US Buy Now Pay Later (BNPL) Spend Category Share – 2021 & 2026 (%)

Fig.23 Canada Buy Now Pay Later (BNPL) Spend Category Share – 2021 & 2026 (%)

Fig.24 Europe Buy Now Pay Later (BNPL) Market Snapshot

Fig.25 Europe Buy Now Pay Later (BNPL) Market By Spend Category Share – 2021 & 2026 (%)

Fig.26 Germany Buy Now Pay Later (BNPL) Spend Category Share – 2021 & 2026 (%)

Fig.27 UK Buy Now Pay Later (BNPL) Spend Category Share – 2021 & 2026 (%)

Fig.28 France Buy Now Pay Later (BNPL) Spend Category Share – 2021 & 2026 (%)

Fig.29 Italy Buy Now Pay Later (BNPL) Spend Category Share – 2021 & 2026 (%)

Fig.30 Spain Buy Now Pay Later (BNPL) Spend Category Share – 2021 & 2026 (%)

Fig.31 Netherlands Buy Now Pay Later (BNPL) Spend Category Share – 2021 & 2026 (%)

Fig.32 Rest of Europe Buy Now Pay Later (BNPL) Spend Category Share – 2021 & 2026 (%)

Fig.33 South & Central America Buy Now Pay Later (BNPL) Market Snapshot

Fig.34 South & Central America Buy Now Pay Later (BNPL) Market By Spend Category Share – 2021 & 2026 (%)

Fig.35 Brazil Buy Now Pay Later (BNPL) Spend Category Share – 2021 & 2026 (%)

Fig.36 Mexico Buy Now Pay Later (BNPL) Spend Category Share – 2021 & 2026 (%)

Fig.37 Argentina Buy Now Pay Later (BNPL) Spend Category Share – 2021 & 2026 (%)

Fig.38 Rest of South & Central America Buy Now Pay Later (BNPL) Spend Category Share – 2021 & 2026 (%)

Fig.39 Asia Pacific Buy Now Pay Later (BNPL) Market Snapshot

Fig.40 Asia Pacific Buy Now Pay Later (BNPL) Market By Spend Category Share – 2021 & 2026 (%)

Fig.41 China Buy Now Pay Later (BNPL) Spend Category Share – 2021 & 2026 (%)

Fig.42 India Buy Now Pay Later (BNPL) Spend Category Share – 2021 & 2026 (%)

Fig.43 Japan Buy Now Pay Later (BNPL) Spend Category Share – 2021 & 2026 (%)

Fig.44 Australia Buy Now Pay Later (BNPL) Spend Category Share – 2021 & 2026 (%)

Fig.45 Rest of Asia Pacific Buy Now Pay Later (BNPL) Spend Category Share – 2021 & 2026 (%)

Fig.46 Middle East & Africa Buy Now Pay Later (BNPL) Market Snapshot

Fig.47 Middle East & Africa Buy Now Pay Later (BNPL) Market By Spend Category Share – 2021 & 2026 (%)

Fig.48 UAE Buy Now Pay Later (BNPL) Spend Category Share – 2021 & 2026 (%)

Fig.49 Saudi Arabia Buy Now Pay Later (BNPL) Spend Category Share – 2021 & 2026 (%)

Fig.50 Turkey Buy Now Pay Later (BNPL) Spend Category Share – 2021 & 2026 (%)

Fig.51 Rest of Middle East & Africa Buy Now Pay Later (BNPL) Spend Category Share – 2021 & 2026 (%)

Fig.52 BNPL – Growth-Innovation Matrix

Fig.53 Information Procurement

Fig.54 Data Analysis Model

Fig.55 Research Methodology

Fig.56 Market Definitions

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