Buy Now Pay Later (BNPL) Market Size was valued at USD 9.6 Billion in 2022. The Buy Now Pay Later (BNPL) market industry is projected to grow from USD 12.07 Billion in 2023 to USD 75.75 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 25.80% during the forecast period (2023 - 2032). Increased adoption of online payment methods and growing use of smartphones are the key market drivers enhancing the market growth.
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Market CAGR for Buy Now Pay Later (BNPL) is driven by the rising adoption of online payment methods. The buy now pay later payment sector is growing faster thanks to a rise in the use of online payment methods among consumers in emerging nations. The most popular digital payment technologies are credit cards, debit cards, and mobile payments. These technologies provide users with a host of advantages, including lower transaction costs, easier fund transfers, and higher payment security, all of which support the expansion of the Buy now, pay later industry.
Additionally, the growing use of smartphones and faster internet have made it possible for consumers and retailers to send and receive payments via digital platforms, which is driving the expansion of the Buy now pay later market. The market is growing because of the rise in digital payments by developing countries like China, Japan, and India as a result of the adoption of Buy now pay later technologies and online payment methods by small and medium-sized businesses.
The buy now pay later payment option provides consumers with a number of advantages, including instant credit card fund transfers at the point of sale, cost-effective and practical payment options, and enhanced personal information security, all of which contribute to the market's expansion. Furthermore, the buy now Pay later offers a QR-code option that enables users to pay with a scan code and to conduct transactions using UPI techniques, all of which contribute to the market's expansion. The buy now pay later platform lets consumers make safe payments without using their debit cards, which promotes market expansion ly. As a result, it is anticipated that throughout the projection period, demand for Buy Now Pay Later (BNPL) will increase due to the rising adoption of online payment methods. Thus driving the Buy Now Pay Later (BNPL) market revenue.
The Buy Now Pay Later (BNPL) market segmentation, based on the channel, includes online and POS. The online segment dominated the market, accounting for the maximum market revenue due to the widespread use of online applications and the growth of online payments. Many companies throughout the world are forming alliances to concentrate on implementing multiple online payment systems, such as BNPL, as part of their post-pandemic recovery strategies.
The Buy Now Pay Later (BNPL) market segmentation, based on enterprises, includes large enterprises and small & medium enterprises. The large enterprises category generated the most income due to the widespread adoption of BNPL payment solutions to give their clients an inexpensive and flexible payment method for high-value product Buys. BNPL makes it easier for customers to make Buys. More products are often Buyd, which boosts sales. BNPL assists big businesses in greatly enhancing the consumer experience.
The Buy Now Pay Later (BNPL) market segmentation, based on end-users, includes retail, healthcare, leisure & entertainment, automotive and others. The retail segment generated the most income due to the increase in customer spending on day-to-day needs at retail outlets via the "buy now, pay later" method. BNPL solutions are becoming more and more popular in the business since they make it simple for customers to spread out the expense of a Buy through pre-arranged, interest-free payments.
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
By region, the study provides the market insights into North America, Europe, Asia-Pacific, and Rest of the World. The North American Buy Now Pay Later (BNPL) market area will dominate this market, owing to the presence of a large number of major players in the region. In addition, several organizations are collaborating with entertainment organizations to provide BNPL services for hotel booking, which will boost market growth in this region.
Further, the major countries studied in the market report are The US, Canada, Germany, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Europe's Buy Now Pay Later (BNPL) market accounts for the second-largest market share due to the rising online shopping services for consumers. Further, the German Buy Now Pay Later (BNPL) market held the largest market share, and the UK Buy Now Pay Later (BNPL) market was the fastest-growing market in the European region.
The Asia-Pacific Buy Now Pay Later (BNPL) Market is expected to grow at the fastest CAGR from 2023 to 2032 due to the rising use of digital payments such as Google Pay, Amazon Pay, PayPal, and others. Moreover, China's Buy Now Pay Later (BNPL) market held the largest market share, and the Indian Buy Now Pay Later (BNPL) market was the fastest-growing market in the Asia-Pacific region.
Leading market players are investing heavily in research and development in order to expand their product lines, which will help the Buy Now Pay Later (BNPL) market grow even more. Market participants are also undertaking a variety of strategic activities to expand their footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, Buy Now Pay Later (BNPL) industry must offer cost-effective items.
Manufacturing locally to minimize operational costs is one of the key business tactics used by manufacturers in the Buy Now Pay Later (BNPL) industry to benefit clients and increase the market sector. In recent years, the Buy Now Pay Later (BNPL) industry has offered some of the most significant advantages to consumers. Major players in the Buy Now Pay Later (BNPL) market, including Affirm, Inc., Klarna Inc., Splitit Payments, Ltd., Sezzle, PerPay Inc., Zip Co, Ltd, PayPal Holdings, Inc., AfterPay Limited, Openpay, LatitudePay Financial Services, HSBC Group, and others, are attempting to increase market demand by investing in research and development operations.
Paypal Holdings, Inc. is a financial technology business based in the United States that operates an online payment system in most countries that allows online money transfers. It functions as an electronic substitute for conventional paper-based methods, including money orders and cheques. The business charges a fee for its services as a payment processor to numerous commercial users, including auction sites and online retailers. For more than 20 years, PayPal has led the charge in the digital payment revolution. Through the utilization of technology, the PayPal platform facilitates simple, cost-effective, and secure financial services and commerce, hence enabling individuals and enterprises to participate and prosper in the worldwide market. In January 2022, PayPal unveiled the Pay in 30 Days Buy Now, Pay Later facility in Germany. The facility enables consumers to Buy up to USD 1,115.0 in 30 days without extra costs.
CRED is an Indian financial startup. It has Banglore as its base. Established by Kunal Shah in 2018, it's an app for credit card payments that offers rewards. Cred enables customers to pay for their rent as well and offers credit lines with a short duration. Cred has drawn flak for having an unsound monetization plan and being overpriced. CRED is a private club for members only that gives them access to premium experiences and special offers in exchange for paying their credit card bills on time.
Additionally, CRED comes with the CRED Protect Function. This AI-powered system monitors every little detail of a credit card payment process, including expenditure trends, other card usage statistics, and reminders for due dates. In February 2023, CRED unveiled an application named CRED Flash to enter into the buy now pay later facility. CRED Flash enables customers to pay on the application and approximately 500 partner merchants, such as Zpto, Swiggy, and Urban Company. It provides facilities to customers to pay bills in 30 days at no extra charge.
Klarna Inc.
Sezzle
Perpay Inc.
Zip Co, Ltd.
PayPal Holdings Inc.
AfterPay Limited
Openpay
LatitudePay Financial Services
March 2023: MANGOPAY and PayPal expanded their strategic partnership to provide markets with expedited access to PayPal's payment capabilities.
April 2023: PayPal and Venmo joined together with Visa to test the latter's new initiative, Visa+. The goal of this new service is to facilitate quick and safe money transfers between various person-to-person digital payment apps.
June 2023: Affirm was the first company to be added to Amazon Pay as a Buy now, pay later service provider. It allowed Amazon Pay merchants in the United States to give their customers the option to "buy now, pay later" by utilizing Affirm's technology.
Online
POS
Large Enterprises
Small & Medium Enterprises
Retail
Healthcare
Leisure & Entertainment
Automotive
Others
North America
US
Canada
Europe
Germany
France
UK
Italy
Spain
Rest of Europe
Asia-Pacific
China
Japan
India
Australia
South Korea
Australia
Rest of Asia-Pacific
Rest of the World
Middle East
Africa
Latin America
| Report Attribute/Metric | Details |
| Market Size 2022 | USD 9.6 Billion |
| Market Size 2023 | USD 12.07 Billion |
| Market Size 2032 | USD 75.75 Billion |
| Compound Annual Growth Rate (CAGR) | 25.80% (2023-2032) |
| Base Year | 2022 |
| Market Forecast Period | 2023-2032 |
| Historical Data | 2018- 2022 |
| Market Forecast Units | Value (USD Billion) |
| Report Coverage | Revenue Forecast, Market Competitive Landscape, Growth Factors, and Trends |
| Segments Covered | Channel, Enterprise Size, End User, and Region |
| Geographies Covered | North America, Europe, Asia Pacific, and the Rest of the World |
| Countries Covered | The US, Canada, Germany, France, UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil |
| Key Companies Profiled | Affirm, Inc., Klarna Inc., Splitit Payments, Ltd., Sezzle, Perpay Inc., Zip Co, Ltd., PayPal Holdings, Inc., AfterPay Limited, Openpay, LatitudePay Financial Services, HSBC Group |
| Key Market Opportunities | Rising awareness about consumer electronics |
| Key Market Dynamics | Increased adoption of online payment methodRising use of smartphone |
Frequently Asked Questions (FAQ) :
The Buy Now Pay Later (BNPL) market size was valued at USD 9.6 Billion in 2022.
The market is projected to grow at a CAGR of 25.80% during the forecast period, 2023-2032.
North America had the largest share of the market
The key players in the market are Affirm, Inc., Klarna Inc., Splitit Payments, Ltd., Sezzle, Perpay Inc., Zip Co, Ltd., PayPal Holdings, Inc., AfterPay Limited, Openpay, LatitudePay Financial Services, HSBC Group.
The online category dominated the market in 2022.
The retail category had the largest share of the market.
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