Buy Now Pay Later Market (By Channel: Online, POS; By Enterprise Size: Large, SME; By End-use: Consumer Electronics, Fashion & Garment) - Global Industry Analysis, Size, Share, Growth, Trends, Revenue, Regional Outlook and Forecast 2023-2032

The global buy now pay later market was surpassed at USD 6.17 billion in 2022 and is expected to hit around USD 62.92 billion by 2032, growing at a CAGR of 26.14% from 2023 to 2032.

Key Pointers

• The online channel segment dominated the market in 2022 and accounted for the largest share of more than 65.04% of the global revenue.
• The PoS channel segment is anticipated to witness a significant growth rate over the forecast period. 
• The large enterprise segment dominated the market in 2022 and accounted for more than 60.02% of the global revenue share.
• The retail segment dominated the market in 2022 and accounted for over 73.1% of the global revenue.
• The healthcare segment is anticipated to register a promising CAGR over the forecast period.
• The consumer electronics segment is anticipated to register a promising CAGR over the forecast period.
• North America dominated the market in 2022 and accounted for the highest share of around 29.08% of the global revenue.

Report Scope of the Buy Now Pay Later Market

The global buy now pay later transactions were valued at over USD 200 billion in 2022. Buy Now Pay Later (BNPL) is a payment option that allows customers to make purchases online and at stores without having to pay the complete amount upfront. Factors fueling the growth of the market include digitization, increasing merchant adoption, the growing repeat usage among younger consumers, and the introduction of new players offering lending through BNPL services. Younger consumers prefer using BNPL services as it provides several benefits, such as buying high-cost laptops and smartphones and making payments for stationery products.

Numerous players are focusing on developing and launching an interest-free BNPL installment solution that enables the customer to pay in installments. Such product launches are aimed to provide a better customer experience to the customers. For instance, in August 2020, PayPal Holdings, Inc. announced the launch of its interest-free buys now pay later installment solution called Pay in 4. This solution enables partners and merchants to get paid upfront while enabling customers to pay for purchases ranging from USD 30 to USD 600 over six weeks. Through this launch, the company expanded its product portfolio.

BNPL services offer a fixed payment schedule, simplified checkout process, zero interest, and fast approval options to customers looking to make purchases. Consumers across the globe use BNPL services to avoid paying credit card interest, make purchases that don’t fit in their budget and borrow money without a credit check. According to a survey by ZestMoney, in January 2022, BNPL emerged as the preferred solution for people across different age groups in 2021, with the youngest consumer being 18 years old and the oldest at 66. The survey also found that men from tier 1 and 2 cities spent heavily on lifestyle and fashion, and women from tier 1 and 2 cities spent on upgrading their edtech courses for upskilling and electronics.

Technological advancements coupled with the notable increase in internet penetration globally have enabled financial service providers to offer novel digital services to customers. The rising popularity of mobile-based apps for making payment transfers also propels the demand for internet banking. Moreover, the strong growth of the e-commerce sector has helped fintech companies to develop their footprints for BNPL solutions worldwide. For instance, the Amazon Pay Later services offered by Amazon.com, Inc., have more than two million users in India and have already been used by more than 10 million times since its launch in April 2020.

Higher smartphone adoption and the requirement for faster internet connectivity have propelled merchants and customers to receive and make payments via the digital platform. In addition, the BNPL platform also supports the QR-code option that allows the customers to scan the code and make respective payments. However, high late fees charged by BNPL service providers are expected to hinder the market growth over the forecast period. Moreover, credit providers and banks that offer BNPL services place charges on both the merchant and the customer.

Buy Now Pay Later Market Segmentations: