Market Analysis and Insights:

With a projected value of USD 753.55 billion in 2022 and a projected growth rate of 29.03% from 2023 to 2032, the global purchase now-pay later market is likely to reach over USD 9,226.67 billion by 2032.

The rising awareness about installment-based payment methods is projected to magnify growth in the Buy Now Pay Later Market.

Buy Now Pay Later Market Scope:

Market Definition 

Buy Now Pay Later (BNPL) is a payment mechanism that allows customers to buy products and services now and pay for them later, generally in instalments over a period of time 

the BNPL market is likely to continue to rise in the future years. BNPL is a handy and flexible payment option that is attractive to an increasing number of customers. BNPL suppliers normally charge no interest or fees, however, they may levy late fees if payments are not paid on time

Key Market Segmentation:

Insights on Type:

The Enterprise Segment is growing at the fastest growth rate 

The rising acceptance of BNPL by firms for making significant purchases, including equipment and inventories.

The increased desire for flexible payment alternatives from businesses, as they confront greater competition and pressure to lower costs.
The creation of new BNPL solutions that are specially tailored for enterprises, such as those that offer longer repayment terms and cheaper interest rates.

Insights on Application:

The Fashion and Garment Segment is boosting 

The apparel and garment sector segment of the Buy Now Pay Later (BNPL) market is predicted to develop at the quickest rate during the forecast period.

• The rising popularity of internet purchasing for fashion and clothes.

• The increased need for quick and flexible payment methods from fashion businesses.

• The increased disposable income of millennials and Gen Z customers, who are the major target market for BNPL services.

The fashion and apparel BNPL market is likely to continue to rise in the future years, as more and more customers adopt this convenient and flexible payment option to purchase clothing and accessories.

Insights on Region Analysis:

The Asia-Pacific Ample Financing Opportunities

Throughout the duration of the projection period, the Buy Now Pay Later (BNPL) market is expected to grow at the fastest rate in the Asia Pacific region. This can be attributed to several factors, such as: • The growing e-commerce industry in the area.

• The rising popularity of online shopping cart events in the area, such as Singles' Day in China and Diwali in India.

The BNPL market in Asia Pacific is likely to continue to rise in the future years, as the area becomes a significant driver of global economic growth. The expanding middle class in the region is also likely to contribute to the expansion of the BNPL market.

Company Profiles:

Affirm, Klarna, Splitit, Sezzle, Quadpay, Afterpay, PayPal Holdings, Perpay, Openpay, and LatitudePay lead the Buy Now Pay Later industry are key players in the market.

COVID-19 Impact and Market Status 

Increase in demand of the market

The COVID-19 epidemic has had a tremendous influencer on the Buy Now Pay Later (BNPL) sector. The pandemic has led to a variety of reasons that have contributed to the expansion of the BNPL market, including:

• The rise of online buying: The COVID-19 epidemic has led to a substantial increase in internet purchasing, as customers have been increasingly cautious to shop in shops. This has provided new potential for BNPL providers, since they may offer their services to consumers who are buying online.

• The loss in consumer confidence: The COVID-19 epidemic has led to a decline in consumer confidence since many individuals have lost their jobs or have had their wages lowered. This has made people more cautious about making significant purchases using cash or credit cards. BNPL suppliers provide a more reasonable choice for clients who are eager to make purchases but are concerned about their finances.

• The rise of the millennial and Gen Z population: The millennial and Gen Z populations are the major target market for BNPL providers. These generations are more likely to utilize BNPL services than earlier generations, as they are more familiar with internet buying and have less spare cash.

Latest Trends and Innovation:

• Klarna buys Affirm: In 2022, Klarna, a Swedish BNPL provider, purchased Affirm, a US BNPL provider, in a deal for $45 billion. This is the largest transaction in the BNPL market to date. The purchase will allow Klarna to expand its presence in the US market and offer a greater variety of BNPL products and services.

• PayPal offers BNPL service: In 2021, PayPal, a worldwide payments corporation, established its own BNPL service dubbed "Pay in 4." Pay in 4 allows consumers to split the cost of a product into four equal payments over six weeks. The service is offered in the US, UK, Australia, Canada, and Mexico.

• Afterpay goes public: In 2021, Afterpay, an Australian BNPL provider, went public on the New York Stock Exchange. The company's IPO was one of the biggest in Australian history. Afterpay's listing on the NYSE has helped to legitimize the BNPL market and attract additional participation from institutional investors.

• Sezzle extends into the US: In 2022, Sezzle, a US BNPL provider, expanded its operations into Canada and the UK. The company's growth into new areas is a symptom of the rising popularity of BNPL services throughout the world.

• Zip introduces BNPL service in the US: In 2022, Zip, an Australian BNPL provider, introduced its own BNPL service dubbed "ZipPay" in the US. ZipPay allows consumers to split the cost of a purchase into four equal payments over six weeks. The service is presently offered in California, Florida, and Texas. 

Significant Growth Factors:

BNPL providers are well-suited for online shopping, as they let consumers make purchases without having to pay for the whole amount ahead. 

• The rising popularity of online shopping: BNPL providers are well-suited for online shopping, as they allow consumers to make purchases without having to pay for the complete amount beforehand. This is a big advantage for consumers who are buying online, since they may avoid having to input their credit card data and can instead complete their purchase with a few clicks of a button.

• The rising adoption of BNPL by retailers: BNPL providers are rapidly being accepted by merchants, as they realize the benefit of giving this simple payment alternative to their clients. This is helping to fuel development in the BNPL market, as more and more consumers are able to utilize BNPL to make purchases at their favourite retailers.

• The increased disposable income of millennials and Gen Z consumers: Millennials and Gen Z customers are the key target demographic for BNPL providers. These generations are more likely to utilize BNPL services than earlier generations, as they are more familiar with internet buying and have less spare cash. The increased disposable income of these generations is a primary driver of development in the BNPL market since they are able to afford to make greater purchases using BNPL.

• The creation of new BNPL solutions: BNPL providers are always creating new solutions to fulfill the demands of their clients. This is fostering innovation in the BNPL sector and is helping to attract new clients. For example, some BNPL providers are now offering BNPL solutions for in-store purchases, as well as BNPL solutions for recurring costs, such as subscriptions.

• The favorable regulatory environment: The regulatory climate for BNPL is typically favorable, which is helping to promote growth in the market. In most countries, BNPL providers are not subject to the same rules as typical credit card firms. This offers BNPL providers a competitive edge and is helping to stimulate expansion in the sector.

Restraining Factors:

BNPL suppliers provide a simple and economical payment alternative for consumers. However, there is a risk that customers may overspend and become indebted. 

• The danger of consumer debt: BNPL suppliers provide a simple and reasonable payment alternative for clients. However, there is a risk that customers may overspend and become indebted. This is a particular problem for low-income customers.

• The lack of transparency: BNPL suppliers are not always upfront about their fees and charges. This might make it difficult for consumers to compare BNPL providers and to make educated judgments about which service to select.

• The absence of regulation: The BNPL market is still very young and there is no clear regulatory structure in place. This might create issues for BNPL providers in the future, since they may be subject to new restrictions that could make it more difficult to operate.

• The danger of fraud: The rise of internet purchasing has also contributed to an increase in fraud. This is a particular worry for BNPL providers, as they are more likely to be targeted by scammers.

The BNPL market is a fast-rising sector with a lot of promise. However, the market is also confronting a number of problems. By overcoming these obstacles, the BNPL market may continue to expand and become a more popular payment option for customers throughout the world.

Key Segments Buy Now Pay Later Market Insights Insights

by Type 
• Individual
• Enterprise 

By Application 
• Fashion & Garment Industry
• Consumer Electronics
• Cosmetic Industry,
• Healthcare
• Others

Regional Overview 

North America
• U.S
• Canada
Europe
• Germany
• France
• UK
• Rest of Europe
Asia Pacific
• China
• India
• Japan
• Rest of Asia Pacific
South America
• Mexico
• Brazil
• Rest of South America