According to Vision Research Reports, the global buy now pay later market size is expected to be worth around US$ 3.5 trillion by 2030 from valued at US$ 80 billion in 2020 and is anticipated to grow at a CAGR of 45.91% during forecast period 2022 to 2030.
The market growth can be attributed to the high purchasing power offered by the BNPL platforms, coupled with benefits, such as interest-free and convenient payments. On the other hand, an increase in the demand for delayed payments for online shopping and a surge in spending on high-cost products are expected to offer lucrative growth opportunities for the market over the forecast period. Several BNPL solution providers are striking partnerships with other fintech companies to offer their services efficiently.
For instance, in October 2021, Openpay, a buy now pay later solution provider, partnered with Till Payments, an end-to-end payment solution provider, to provide the flexibility of BNPL to more merchants and consumers across New Zealand and Australia. This partnership is expected to enhance the online shopping experience of more consumers across the region owing to the introduction of Openpay’s BNPL option at the Point-of-Sale (PoS) terminal. Moreover, several fintech companies are focusing on developing innovative BNPL features for local shoppers worldwide. For instance, in March 2021, Payflex announced the launch of the BNPL feature for local shoppers in South Africa.
Through this launch, local consumers would be able to purchase items from 500 well-known stores, such as Superbalist, Cotton-on, and many more. The COVID-19 pandemic is expected to have a positive impact on the market. A myriad of unexpected issues stemming from lockdowns, restrictions on the movement of people as well as goods, social distancing measures, and the growing awareness of BNPL payment method prompted various companies to adopt these solutions to provide a better customer experience. As a result, BNPL solution providers witnessed exponential growth in their customer base and transaction volumes. For instance, the overall BNPL transactions on ZestMoney jumped 300% in 2021 compared to 2020.
|Market Size||USD 3.5 Trillion by 2030|
|Growth Rate||CAGR of 45.91% From 2021 to 2030|
|Historic Data||2017 to 2020|
|Forecast Period||2022 to 2030|
|Segments Covered||Channel, Enterprise Size, End use|
|Regional Scope||North America, Europe, Asia Pacific, Latin America, Middle East & Africa|
|Companies Mentioned||Afterpay; PayPal Holdings, Inc.; Affirm, Inc.; Klarna Inc.; Splitit; Sezzle; Perpay Inc.; Openpay; Quadpay, Inc.; LatitudePay|
COVID-19 Impact Analysis
The COVID-19 pandemic has had a positive impact on the market. With the crisis limiting household incomes across the globe, the search for liquidity has been elevated. The pandemic has driven a new normal in online shopping where consumers are confident in purchasing the products with various online payment gateways. Moreover, banks are often deterred from providing credit in challenging economic environments. In such cases, BNPL solutions help customers in paying their bills in installments. As a result, BNPL transactions have significantly increased during the COVID-19 pandemic.
On the basis of channels, the global market has been bifurcated into online and Point-of-Sale (PoS). The online channel segment dominated the market in 2021 and accounted for the largest share of more than 65% of the global revenue. A number of businesses across the globe are striking partnerships to focus on the adoption of the fastest-growing online payment methods, such as buy now pay later, as part of their post-pandemic resurgence plans. For instance, in August 2021, Uplift, Inc., a BNPL solution provider, announced its partnership with Tripster, an all-in-one travel booking site.
Through this partnership, Tripster’s customers can easily plan the entire vacation in one place and pay with surprise-free monthly installments through Uplift. The PoS channel segment is anticipated to witness a significant growth rate over the forecast period. Many businesses are focusing on providing PoSBNPL financing options to enhance customer experience and strengthen their relationship with customers. Moreover, businesses offer customers loyalty-driven transparent PoS installment loan programs. As a result, businesses are experiencing larger shares of repeat customers.
Enterprise Size Insights
On the basis of enterprise sizes, the global market has been further categorized into Small & Medium Enterprises (SMEs) and large enterprises. The largeenterprises segment dominated the market in 2021 and accounted for more than 62% of the global revenue share. Large-scale enterprises are widely adopting BNPL payment solutions as they offer customers a flexible and affordable payment method for purchasing high-value products. The ease of shopping also enables customers to purchase more products, thereby driving sales. Thus, BNPL helps large-scale enterprises in significantly improving customer experience.
Small & medium enterprises across the globe are focusing on adopting BNPL solutions to help merchants increase sales conversion rates. For instance, Dukaan, a startup company that helps SMEs set up online stores, announced its partnership with Simpl, a BNPL solution provider, to offer BNPL services to Dukaan’s merchants. Small & medium enterprises focus on increasing their customer base and strengthening their position in the market. As a result, the adoption of BNPL solutions is expected to increase among SMEs, thereby supporting the growth of the segment.
The fashion & garment segment dominated the market in 2021 and accounted for the maximum share of more than 44% of the global revenue. The industry is witnessing increased adoption of BNPL solutions as they allow customers to easily distribute the cost of the purchase over a time of pre-determined and interest-free payments. For instance, in October 2021, Affirm, Inc., a BNPL solution provider, announced its partnership with Theory, a clothing site for customers, to offer customers interest-free payments overtime for accessories and sportswear. Such factors bode well for the growth of the segment.
The consumer electronics segment is anticipated to register a promising CAGR over the forecast period. The industry is witnessing an increasing adoption of BNPL payment methods as they offer a low-friction substitute to credit cards. Moreover, customers prefer BNPL payment methods in comparison to credit cards to avoid expensive compounding interest and hidden fees. Increasing awareness among consumer electronic providers about the flexible buy now pay later payment method is expected to drive the demand for BNPL services over the forecast period.
North America dominated the market in 2021 and accounted for the highest share of around 31% of the global revenue. The regional market growth can be attributed to the presence of a large number of prominent players. Moreover, numerous fintech companies in this region are entering into a partnership with entertainment companies to offer BNPL services for booking hotels. For instance, in September 2021, Uplift, Inc., a BNPL solution provider, partnered with SeaWorld Parks & Entertainment, Inc., an American Theme Park, and entertainment company.
Through this partnership, Uplift, Inc. offered its BNPL payment options for booking hotels for SeaWorld San Antonio, SeaWorld Orlando, and SeaWorld San Diego. Asia Pacific is anticipated to record the fastest CAGR over the forecast period. BNPL trend is becoming popular across the region as it enables customers to access credit and defer payments. Moreover, the increase in uptake of BNPL solutions across the region has been fueled by millennial and Gen Z shoppers. The growing mobile internet penetration in the region is further expected to create growth opportunities for the regional market over the forecast period.
PayPal Holdings, Inc.
By Enterprise Size
By End Use
The Buy Now Pay Later market research report covers definition, classification, product classification, product application, development trend, product technology, competitive landscape, industrial chain structure, industry overview, national policy and planning analysis of the industry, the latest dynamic analysis, etc., and also includes major. The study includes drivers and restraints of the global market. It covers the impact of these drivers and restraints on the demand during the forecast period. The report also highlights opportunities in the market at the global level.
The report provides size (in terms of volume and value) of Buy Now Pay Later market for the base year 2020 and the forecast between 2021 and 2030. Market numbers have been estimated based on form and application. Market size and forecast for each application segment have been provided for the global and regional market.
This report focuses on the global Buy Now Pay Later market status, future forecast, growth opportunity, key market and key players. The study objectives are to present the Buy Now Pay Later market development in United States, Europe and China.
It is pertinent to consider that in a volatile global economy, we haven’t just conducted Buy Now Pay Later market forecasts in terms of CAGR, but also studied the market based on key parameters, including Year-on-Year (Y-o-Y) growth, to comprehend the certainty of the market and to find and present the lucrative opportunities in market.
In terms of production side, this report researches the Buy Now Pay Later capacity, production, value, ex-factory price, growth rate, market share for major manufacturers, regions (or countries) and type.
In terms of consumption side, this report focuses on the consumption of Buy Now Pay Later by regions (countries) and application.
Buyers of the report will have access to verified market figures, including global market size in terms of revenue and volume. As part of production analysis, the authors of the report have provided reliable estimations and calculations for global revenue and volume by Type segment of the global Buy Now Pay Later market. These figures have been provided in terms of both revenue and volume for the period 2017 to 2030. Additionally, the report provides accurate figures for production by region in terms of revenue as well as volume for the same period. The report also includes production capacity statistics for the same period.
With regard to production bases and technologies, the research in this report covers the production time, base distribution, technical parameters, research and development trends, technology sources, and sources of raw materials of major Buy Now Pay Later market companies.
Regarding the analysis of the industry chain, the research of this report covers the raw materials and equipment of Buy Now Pay Later market upstream, downstream customers, marketing channels, industry development trends and investment strategy recommendations. The more specific analysis also includes the main application areas of market and consumption, major regions and Consumption, major Chinese producers, distributors, raw material suppliers, equipment providers and their contact information, industry chain relationship analysis.
The research in this report also includes product parameters, production process, cost structure, and data information classified by region, technology and application. Finally, the paper model new project SWOT analysis and investment feasibility study of the case model.
Overall, this is an in-depth research report specifically for the Buy Now Pay Later industry. The research center uses an objective and fair way to conduct an in-depth analysis of the development trend of the industry, providing support and evidence for customer competition analysis, development planning, and investment decision-making. In the course of operation, the project has received support and assistance from technicians and marketing personnel in various links of the industry chain.
Buy Now Pay Later market competitive landscape provides details by competitor. Details included are company overview, company financials, revenue generated, market potential, investment in research and development, new market initiatives, global presence, production sites and facilities, production capacities, company strengths and weaknesses, product launch, product width and breadth, application dominance. The above data points provided are only related to the companies’ focus related to Buy Now Pay Later market.
Prominent players in the market are predicted to face tough competition from the new entrants. However, some of the key players are targeting to acquire the startup companies in order to maintain their dominance in the global market. For a detailed analysis of key companies, their strengths, weaknesses, threats, and opportunities are measured in the report by using industry-standard tools such as the SWOT analysis. Regional coverage of key companies is covered in the report to measure their dominance. Key manufacturers of Buy Now Pay Later market are focusing on introducing new products to meet the needs of the patrons. The feasibility of new products is also measured by using industry-standard tools.
Key companies are increasing their investments in research and development activities for the discovery of new products. There has also been a rise in the government funding for the introduction of new Buy Now Pay Later market. These factors have benefited the growth of the global market for Buy Now Pay Later. Going forward, key companies are predicted to benefit from the new product launches and the adoption of technological advancements. Technical advancements have benefited many industries and the global industry is not an exception.
New product launches and the expansion of already existing business are predicted to benefit the key players in maintaining their dominance in the global market for Buy Now Pay Later. The global market is segmented on the basis of region, application, en-users and product type. Based on region, the market is divided into North America, Europe, Asia-Pacific, Latin America and Middle East and Africa (MEA).
In this study, the years considered to estimate the market size of Buy Now Pay Later are as follows:
Reasons to Purchase this Report:
- Market segmentation analysis including qualitative and quantitative research incorporating the impact of economic and policy aspects
- Regional and country level analysis integrating the demand and supply forces that are influencing the growth of the market.
- Market value USD Million and volume Units Million data for each segment and sub-segment
- Competitive landscape involving the market share of major players, along with the new projects and strategies adopted by players in the past five years
- Comprehensive company profiles covering the product offerings, key financial information, recent developments, SWOT analysis, and strategies employed by the major market players
In-depth interviews and discussions were conducted with several key market participants and opinion leaders to compile the research report.
This research study involved the extensive usage of both primary and secondary data sources. The research process involved the study of various factors affecting the industry, including the government policy, market environment, competitive landscape, historical data, present trends in the market, technological innovation, upcoming technologies and the technical progress in related industry, and market risks, opportunities, market barriers and challenges. The following illustrative figure shows the market research methodology applied in this report.
Market Size Estimation
Top-down and bottom-up approaches are used to estimate and validate the global market size for company, regional division, product type and application (end users).
The market estimations in this report are based on the selling price (excluding any discounts provided by the manufacturer, distributor, wholesaler or traders). Market share analysis, assigned to each of the segments and regions are achieved through product utilization rate and average selling price.
Major manufacturers & their revenues, percentage splits, market shares, growth rates and breakdowns of the product markets are determined through secondary sources and verified through the primary sources.
All possible factors that influence the markets included in this research study have been accounted for, viewed in extensive detail, verified through primary research, and analyzed to get the final quantitative and qualitative data. The market size for top-level markets and sub-segments is normalized, and the effect of inflation, economic downturns, and regulatory & policy changes or others factors are accounted for in the market forecast. This data is combined and added with detailed inputs and analysis from Vision Research Reports and presented in this report.
Market Breakdown and Data Triangulation
After complete market engineering with calculations for market statistics; market size estimations; market forecasting; market breakdown; and data triangulation. Extensive primary research was conducted to gather information and verify and validate the critical numbers arrived at. In the complete market engineering process, both top-down and bottom-up approaches were extensively used, along with several data triangulation methods, to perform market estimation and market forecasting for the overall market segments and sub-segments listed in this report.
Secondary Sources occupies approximately 25% of data sources, such as press releases, annual reports, Non-Profit organizations, industry associations, governmental agencies and customs data, and so on. This research study includes secondary sources; directories; databases such as Bloomberg Business, Wind Info, Hoovers, Factiva (Dow Jones & Company), TRADING ECONOMICS, and avention; Investing News Network; statista; Federal Reserve Economic Data; annual reports; investor presentations; and SEC filings of companies.
In the primary research process, various sources from both the supply and demand sides were interviewed to obtain qualitative and quantitative information for this report. The primary sources from the supply side include product manufacturers (and their competitors), opinion leaders, industry experts, research institutions, distributors, dealer and traders, as well as the raw materials suppliers and producers, etc.
The primary sources from the demand side include industry experts such as business leaders, marketing and sales directors, technology and innovation directors, supply chain executive, end users (product buyers), and related key executives from various key companies and organizations operating in the global market.
The study objectives of this report are:
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