Buy Now Pay Later (BNPL) Market 2022 – Segments Analysis, Industry Trends, Manufacturers Analysis, Opportunities and Market Size & Forecast 2030

The global value of buy now pay later market is estimated to USD 129.7 billion in 2022 and the respective market is expected to grow enormously at a CAGR of 49.7% over the forecasted period. Buy now pay later is a short-term financing that allows people to buy daily necessities such as clothes, electronics, and home renovation items. It's a point-of-sale (POS) instalment loan mechanism that allows customers to buy things and controls their repayment. Retailers are offering buy now, pay later solutions that allow their consumers to purchase everyday necessities by selecting an inexpensive financing plan and paying in instalments rather than the entire cost at once. Business owners from across the globe have conveniently inclined to the buy now pay later payment platform to fund heavy equipment, purchase raw materials, and pay staff salaries, that apparently influence the buy now pay later market in a positive manner. Furthermore, there is an increase in the adoption of buy now pay later payment technology among the youth because it provides several benefits such as purchasing a high-priced smartphone and laptop, paying fees for ones’ education and products of commodity, and paying other bills, which accelerates the buy now pay later market. 

The effects of COVID-19 pandemic have been convincingly referral to this particular market as the people or consumer across the world was mostly confined due to indefinite lockdowns. The situation led to an increased consumer use of buy now pay later platforms for purchasing household goods and other commodities for general use.

GROWTH DRIVERS

There are numerous benefits that come bundled with the use of buy now pay later systems, including affordable and convenient payment services, fast credit card fund transfer at the point of sale (POS) platform, and greater personal information security, all of which contribute to the market's growth. Over the projection period, the purchase now platform's benefits to customers and merchants will fuel the market's global expansion.

The growing acceptance of online payments in industries such as banking, health insurance, retail & consumer goods, and others has fueled the rise of the global point of sale instalment loans business. According to the United Nations Conference on Trade and Development (UNCTAD), by 2020, more than 80% of global customers would have shopped online and used digital payment.

The increased e-commerce sales globally in 2021 created a large need for BNPL services. According to the Census Government Organization, retail e-commerce sales in the United States reached USD 204.60 billion in the third quarter of 2021. According to a report by the United Nations Conference on Trade and Development (UNCTAD), worldwide e-commerce sales through online platforms hit USD 26.70 trillion in 2020, with retail sales increasing from 16.0 percent to 19.0 percent. Such a surge in global e-commerce sales has generated a massive opportunity for market expansion during the predicted period.

Furthermore, increased consumer knowledge of consumer electronic gadgets and health insurance services contributes to growth. According to the Reserve Bank of Australia, in 2020, buy now, pay later services transactions for goods purchases in New Zealand and Australia were valued at roughly USD 10.0 billion. The value of BNPL services transactions is fast increasing due to an increase in demand for consumer electronic gadgets and health insurance services.

The increased spending on purchases is one of the primary issues limiting the global buy now pay later market's expansion. People can use buy now pay later platforms to purchase products and services without having to pay any money up front. The market is being driven by the option to pay later. However, this element may have an impact on the business of buy now, pay later market participants. The buy-now, pay-later option can result in a financial loss for businesses. As a result, this aspect is limiting the global buy now pay later market's expansion.

There are a variety of different payment methods available, including credit card and debit card financing, postdated cheques, and others. Consumers and merchants in various emerging countries, like India, Brazil, Asian countries, and others, are ignorant of the BNPL service. Before delivering the BNPL service to consumers, the credit score must also be checked.

Customers can pay in monthly instalments using the service's convenient payment options. The lack of customer, retailer, and merchant awareness, as well as the availability of multiple payment choices, stymies overall growth.

BUY NOW PAY LATER MARKET SEGMENTATION

By Channel

·        Point of Sale (POS)

·        Online

By Application

·        BFSI

·        Consumer Electronics

·        Fashion & Garment

·        Healthcare

·        Home Improvement

·        Retail

·        Media & Entertainment

·        Others

By End User

·        Generation X

·        Generation Z

·        Baby Boomers

By Region

·        North America

·        Europe

·        Asia Pacific (APAC)

·        Latin America

·        Middle East & Africa

REGIONAL OUTLOOK

North America is predicted to have the largest share in buy now, pay later market share due to increased investment in R&D activities and a thriving start-up ecosystem. Increasing the number of people who use this service to buy things helps the market flourish.

Europe is fast expanding as a result of a boom in service use among internet shoppers. According to the World Pay study, the buy now, pay later fintech company in the United Kingdom, such as Afterpay, Klarna, Affirm, and others, is increasing at a 39 percent annual rate due to an increase in e-commerce sales. Several top corporations are also extending their service offerings in European countries such as Germany, the United Kingdom, France, and others.

During the projection period, the Asia Pacific region is expected to develop at the fastest CAGR. This is due mostly to the growing use of digital payments such as Amazon Pay, Google Pay, PayPal, and others. The popularity of these online payment channels has resulted in a high demand for the service. Furthermore, the growing popularity of e-commerce online applications has generated a hitherto unheard-of market potential for important companies.

During the projected timeframe, the Middle East and Africa are expected to increase significantly. This is mostly due to increased online purchasing patterns among consumers and an increase in digital payment acceptance by the country's citizens. During the forecast period, Latin America is expected to increase at a moderate rate. The region's market is primarily driven by the increased investment and development of these services by fintech companies.

KEY COMPANIES IN BUY NOW PAY LATER MARKET

The research report offers a competitive analysis of prominent companies operating in the global buy now pay later market. Some of the leading players profiled in the market research report include:

·        Affirm Holdings Inc.

·        Afterpay

·        Klarna Bank AB

·        Laybuy Group Holdings Limited

·        PayPal Holdings Inc.

·        Payl8r (Social Money Ltd.)

·        Perpay Inc.

·        Quadpay

·        Billie

·        Sezzle

·        Splitit

·        Other Players