How has the Buy Now Pay Later Market become an Affordable and Convenient Payment Service?
"Buy now, pay later" short-term financing enables customers to buy everyday items like apparel, electronics, and home improvement supplies. Customers can buy items, and the point of sale (POS) installment loan method manages reimbursement. "Buy now, pay later" solutions enable customers to buy the items they frequently need by selecting a suitable financing plan and spreading out payments rather than buying them all at once. People can take advantage of the buy now pay later payment method's many advantages, including affordable and practical payment services, immediate credit card money transfer support at the point of sale platform, and greater personal information security, which fosters the market's expansion. Retailers and merchants commonly accept the "buy now pay later" payment method because it increases the organization's revenue by selling lower-priced products at a higher rate and giving an installment repayment method. Customers wanting to make purchases can take advantage of BNPL services, including a fixed payment plan, a simplified checkout experience, zero interest, and quick approval choices. The buy now pays later platform also offers a QR-code payment option that allows customers to pay by scanning barcodes and authorizing the transaction using UPI, driving the market's expansion. Furthermore, the buy-now-pay-later platform assists users in making secure payments without swiping a debit card, which boosts industry expansion globally.
What is the Market Size of Buy Now Pay Later in value?
The global Buy Now Pay Later Market is projected to increase at a significant CAGR of 25.80% in the coming years. In 2021, the global Buy Now Pay Later market was valued at USD 4.9 billion and is projected to reach USD 19.4 billion by 2028. The demand for Buy Now Pay Later is projected to increase substantially in the coming years and is presumed to generate revenue opportunities for the key industry players worth USD 14.5 billion between 2022 and 2028.
The global Buy Now Pay Later market was valued at USD 4.9 billion and is projected to reach USD 19.4 billion by 2028.
What Impact has COVID-19 had on the Buy Now Pay Later Market?
The pandemic of COVID-19 has had a beneficial influence on business. With the global financial crisis reducing household incomes, the search for liquidity has intensified. The pandemic has ushered in a new era of online shopping, with customers confident in purchasing things through numerous online payment methods. Furthermore, banks are frequently discouraged from giving credit in challenging economic conditions. In such cases, BNPL solutions help customers make installment payments on their debts. As a response, BNPL transactions have surged dramatically amid the COVID-19 pandemic.
Interesting Facts about Buy Now Pay Later Industry
Digitization, increased merchant acceptance, more significant repeat usage among millennial consumers, and the arrival of new players supplying financing through BNPL services are all driving market growth.
The Buy Now Pay Later market was led by North America in 2021, and this trend is anticipated to continue.
Several fintech firms are concentrating on building novel BNPL solutions for local consumers worldwide.
The industry's key players are extending their market presence through various tactics such as mergers, acquisitions, collaborations, and partnerships.
Who are the Top 10 Players/Companies in the Buy Now Pay Later market regarding value?
The key players in the global Buy Now Pay Later market are value Afterpay; PayPal Holdings, Inc.; Affirm, Inc.; Perpay Inc.; Openpay; Quadpay, Inc.; LatitudePay ; Klarna Inc.; and Splitit; Sezzle. These leading competitors are focusing on new product launches as well as technical innovation to increase their Buy Now Pay Later production and obtain a competitive market share on a global scale. For instance, in October 2021, Openpay, a buy now pay later provider, collaborated with Till Payments, an edge payment solution provider, to bring the versatility of BNPL to more merchants and consumers in Australia and New Zealand. Because of the addition of Openpay's BNPL option at the Point-of-Sale (PoS) terminal, this cooperation is intended to improve the online experience of more consumers across the region. On the other hand, in August 2020, PayPal Holdings, Inc. announced the release of Pay in 4, their interest-free buy now, pay later payment solution. This solution allows partners and sellers to get paid in advance, while customers can pay for goods varying from USD 30 to USD 600 over six weeks.
Who are the Top 10 Countries in the Buy Now Pay Later Market?
The major countries in the global Buy Now Pay Later market are the US, Canada, Brazil, China, Japan, Australia, India, Germany, Sweden, and the U.K. The BNPL market is expected to dominate in the United States. According to Accenture plc, BNPL subscribers have surged 300% since 2018, with 45 million users expected in 2021, and their expenditure is estimated to be over USD 20.8 billion. Customers and merchants both benefit from BNPL. Prominent suppliers are increasing their domains and acquiring new clients as they progress toward the e-commerce sector. According to Bank of America Corp., The marketplace for these BNPL digital payments is estimated to expand 10-15 times by 2025. Customers are increasingly using BNPL to make buys both in-store and online. A growing number of shops are emphasizing these point-of-sale and online installment loans as payment methods, creating the potential for BNPL solution providers. Over the forecast period, the market is expected to be driven further by the expanding e-commerce industry.
Which is the Key Channel Segment in the Buy Now Pay Later Market?
The online segment was the market leader and the source of the most significant portion of global revenue. Numerous businesses all across the world are collaborating to focus on implementing the fastest-growing internet financing solutions, like buy now and pay later, as part of their post-pandemic resurrection strategies. Over the projected period, a considerable growth rate is anticipated for the PoS channel segment. Several businesses are focusing on providing PoSBNPL financing options to increase customer satisfaction and strengthen their ties with clients. Additionally, businesses offer clients explicit loyalty-based PoS installment loan programs. As a result, businesses are reporting increasing percentages of repeat clients.
What are the Major Driving Factors for Buy Now Pay Later Market?
The industry is expanding due to factors like digitization, rising merchant adoption, rising repetitive applications among millennial consumers, and the entry of new firms offering BNPL services for lending. Younger customers favor using BNPL services since they may buy expensive laptops and cellphones and make payments for stationery products, among other advantages. Many players are concentrating on creating and releasing a BNPL installment solution that allows customers to pay over time with no interest. This product launches attempt to give clients a better customer experience, which promotes market expansion. Due to technological improvements and the noticeable rise in internet usage worldwide, financial service providers may now offer customers digital services due to the market's growth.
What are the Major Restraints for Buy Now Pay Later Market?
Rising consumer expenditure is one of the primary constraints limiting the worldwide buy now pay later market's growth. The buy now, pay later option can potentially result in a financial loss for the company. Thus, this aspect limits the expansion of the global buy now pay later market. The buy now, pay later model is less prevalent in emerging and impoverished countries. As a result, the lack of user knowledge in developing and undeveloped countries impedes market expansion.
Which Region Dominated the World Buy Now Pay Later Market?
In 2021, North America will dominate the Buy Now Pay Later market over the forecast period. A significant number of prominent companies influence the regional market's growth. Furthermore, various financial organizations throughout this region collaborate with entertainment organizations to provide BNPL services for hotel booking. For instance, an American theme park and entertainment firm called SeaWorld Parks & Entertainment, Inc. cooperated with Uplift, Inc., a BNPL solution provider, in September 2021. Uplift, Inc. used this agreement to give its BNPL payment choices for reserving hotels at SeaWorld San Antonio, SeaWorld San Diego and SeaWorld Orlando. To expand the capabilities of their services, buy now pay later companies are funding modern technologies such as A.I., cloud, and machine learning in this region. In August 2021, Apple, Inc. and Affirm Holdings, Inc. cooperated in establishing the PayBright "buy now, pay later" service for Apple devices in Canada. For 12 to 24 months, participants can use the point-of-sale installment loans service for Mac, iPhones, and iPads.
Asia Pacific region grows significantly because of price increases in various home products such as music systems, smart T.V.s, and washing machines. The BNPL trend spreads throughout the region since it allows users to obtain credit and delay payments. Furthermore, millennial and Gen Z shoppers have pushed the region's increased use of BNPL solutions. The region's increasing mobile internet adoption will likely generate further potential prospects for the regional industry throughout the forecast period. Key market players are launching sophisticated services in collaboration with this region's banking, financial services, and insurance organizations. For instance, in July 2021, Afterpay, an Australian service provider, collaborated with Westpac's financial services to improve digital capabilities in banking. Clients could access their spending using this strategic agreement through Afterpay's money management platform.
Segmentation of Global Buy Now Pay Later Market-
Global Buy Now Pay Later Market – By Channel
Online
POS
Global Buy Now Pay Later Market – By Enterprise Size
Large Enterprises
Small & Medium Enterprises
Global Buy Now Pay Later Market – By End-use
Consumer Electronics
Fashion & Garment
Healthcare
Leisure & Entertainment
Retail
Others
Frequently asked questions about the global Buy Now Pay Later industry
The global Buy Now Pay Later market is expected to be impacted significantly by COVID-19.
North America accounted for the highest share in the global Buy Now Pay Later market in value.
Digitisation, increased merchant acceptance, increased repeat usage among younger consumers, and the arrival of new businesses offering financing through BNPL services are all driving market growth.
Large enterprises segment had a significant share in 2021, with more than 60% of the market revenue share.
Fashion & garment segment had a significant share in 2021 with more than 35% of the market revenue share.
