The rising awareness about installment-based payment methods is projected to magnify growth in the global Buy Now Pay Later Market
Covid-19 Impact & Market Status
The report offers an exhaustive overview of the business dynamics and new investment strategies that are being adopted by business leaders across countries and regions to overcome the acute challenges and financial instabilities that have emerged in the post pandemic times.
The global market for the Buy Now Pay Later is anticipated to develop at a compound annual growth rate (CAGR) of 26.0% throughout the course of the forecast, to reach USD 39.41 billion by 2030.
The report highlights some of the best industry strategies and practices that are adopted by the players across local and global markets. Ever since the Covid-19 broke out in 2019, it has spread aggressively, resulting in rapid declaration by the WHO affirming Covid-19 as a global pandemic and an emergency.
The impact of the pandemic is widespread and the aftermath is well pronounced, gravely affecting the global Buy Now Pay Later chip market. The sudden pandemic and its implications have posed significant challenges such as travel bans, quarantines, and lockdowns.
These developments are hampering operations resulting in supply chain breaches, stock market inefficiencies, and vendor chaos. These are constantly interfering with the normal functioning of industries.
Ever since the outbreak of the global crisis, impact on upstream, downstream, and midstream industries have been appalling. The report delivers a quick ready-to-deploy approach to counter such crisis and steer the global Buy Now Pay Later market towards steady growth and systematic progression.
Amidst the pandemic, aligning with new dynamics, global Buy Now Pay Later market has been witnessing new dynamics which are further necessitating new business models and approaches to recoup growth and revenue streams.
In this report, inquisitive business players would be provided with sufficient guidelines regarding business transformation, integral to sustain stiffening competition in the pandemic and beyond pandemic era global Buy Now Pay Later market.
Buy Now Pay Later for Individual segment to Sustain the Highest Revenues, Followed by Enterprise
Enterprise segment is anticipated to grow at the fastest CAGR over the forecast period. A number of companies currently offer applications allowing Enterprise payments. The ease of shopping also enables customers to purchase more products, thereby driving the sales. Thus, BNPL helps large enterprises in significantly improving customer experience.
Furthermore, the growing digitalization and rising internet penetration is expected to boost the market growth. The Individual segment is anticipated to grow at the significant CAGR over the forecast period.
Consumer Electronics Buy Now Pay Later application Segment to be the Most Lucrative
Consumer electronics segment is projected to be fastest growing segment in the global market. On the other hand, fashion and garment industry dominated by holding largest market share in the global market. Ease of use and no time delay while purchasing is mainly attributing to segment growth. These factors are estimated to boost the growth of banking segment in Buy Now Pay Later market.
APAC to Sweep the Largest Revenue Streams Followed by North America
APAC is the largest contributor to this market, followed by Europe and then North America. In Asia, the presence of nations like China and India, with their massive subscriber bases and constantly shifting regulatory and competitive landscapes, has raised demand for Buy Now Pay Later systems. North America, on the other hand, is confronted with the challenges of a deregulated telecom sector.
Further, applications such as the Individual is one of the fastest growing segment in application which in turn is favoring rampant expansion of the global Buy Now Pay Later market across regions such as North America and Asia Pacific. Consumer preferences for enhanced customer service with real-time billing experience is expected to gain traction in the global Buy Now Pay Later market.
The absence of interest fees charged by BNPL platforms is expected to offer new opportunities in the global Buy Now Pay Later market
The industry is likely to develop as people become more aware of installment-based payment solutions. Furthermore, the absence of interest fees levied by BNPL platforms is likely to boost the market's growth prospects. In comparison to other types of retail borrowing, BNPL often requires fewer comprehensive credit checks. As a result, customers with bad credit or no credit who aren't qualified for standard loan options prefer BNPL. The use of purchase now, pay later shopping solutions has expanded significantly among millennials and Gen Z shoppers in recent years. Because these consumers are looking for simple budgeting tools, BNPL products assist them in meeting their financial goals. Customers wishing to make purchases can benefit from BNPL's simplified checkout experience, fixed payment schedule, zero-interest, and quick approval alternatives. Customers can also spend more with these solutions than they can with other payment options. According to a poll of 6,500 adults done by Cardify in 2020, BNPL solutions have an essential part in influencing how much people spend over the holidays, with 44 percent of clients saying so. Furthermore, around 48% of customers claimed that BNPL solutions allow them to spend 10% to 20% more than they would with a credit card.
Despite a minor growth dip owing to Covid-19 implications, the global Buy Now Pay Later market is expected to recoup growth and register a CAGR over the forecast period.
Retailers are now offering buy now, pay later options, allowing customers to acquire everyday necessities by selecting an affordable financing plan and paying in instalments rather than paying the whole price all at once. Several business owners around the world have been using the buy now pay later payment platform to finance significant equipment, purchase raw materials, and pay staff salaries, fueling the global buy now pay later market's expansion. Furthermore, as a result of the increased adoption of buy now pay later payment technology among the youth, which provides several benefits such as purchasing high-cost smartphones and laptops, paying tuition fees and stationary products, and paying the canteen bill, the buy now pay later market is expected to grow at a faster rate.
The rise of the purchase now pay later business is accelerated by an increase in the usage of online payment methods among individuals in developing countries. The economical and convenient payment service of buy now pay later platforms, as well as the worldwide e-commerce industry's expansion, are the primary reasons driving the global buy now pay later market trends. However, the market's expansion is hampered by significant late and returned payment costs. On the contrary, the buy now pay later sector is likely to benefit from an increase in demand for delayed payments for online purchases and an increase in spending on luxury goods among the adult population. Furthermore, purchase now pay later service providers' hefty late fees are projected to stifle market expansion over the forecast period. Furthermore, BNPL services are charged to both the merchant and the client by credit providers and banks. In comparison to traditional payment methods, BNPL platforms charge higher fees, which typically range from 2% to 6% of the total purchase price.
The COVID-19 pandemic is likely to boost the purchase now, pay later industry. With the global financial crisis reducing household earnings, the demand for cash has increased and is anticipated to continue beyond 2021. Furthermore, in difficult economic times, banks are often hesitant to extend credit. In such instances, BNPL solutions assist consumers in making instalment payments on their invoices.
The major players of the global Buy Now Pay Later market are Square, QuadPay, Visa, Sezzle, Affirm, Klarna, Splitit, Latitude Financial Services, Flexigroup, and Openpay.
The Buy Now Pay Later market is a rapidly progressing industry and is characterized to have industrial frontliners as well as aspiring new players aiming to penetrate into the aggressive competitive landscape across global and local markets. Additionally, various new and aspiring players are improving their product lines and upgrading technological capabilities to improve revenue streams amidst Covid-19 impact.
Latest Innovations in the Global Buy Now Pay Later Market: a Snapshot
- In August 2021, Square an US fintech giant has announced that it has acquired Afterpay a buy now pay later leader for USD 29.0 billion.
Buy Now Pay Later Market Scope
|Forecast Unit||Value (USD)|
|Revenue forecast in 2030||USD 39.41 billion|
|Growth Rate||CAGR of 26.0 % during 2022-2030|
|Segment Covered||Channel, Enterprise Size, End-use, Geography|
|Regions Covered||North America, Europe, Asia Pacific, South America, Middle East and Africa|
|Key Players Profiled||Afterpay, PayPal Holdings, Inc., Affirm, Inc., Klarna Inc., Splitit, Sezzle, Perpay Inc., Openpay, Quadpay, Inc., LatitudePay|
Key Segments of the Global Buy Now Pay Later Market
Type Overview, 2018-2028 (USD Billion)
Application Overview, 2018-2028 (USD Billion)
- Fashion & Garment Industry
- Consumer Electronics
- Cosmetic Industry
Regional Overview, 2018-2028 (USD Billion)
- Rest of Europe
- Rest of Asia Pacific
- Rest of South America
Middle East and South Africa