USD 4.86 billion
Buy Now Pay Later Market Size, Share, Growth Analysis, By Channel(Point of Sale, Online), By Landing Type(Point of Sale, Personal Loans, Private-level Credit Cards, General-purpose Credit Cards), By Enterprise Size(Large Enterprises, and Small & Medium Enterprises), By Industry(e-Commerce & Retail (Consumer Electronics, Fashion & Garment and Others), Healthcare, Leisure & Entertainment), By Region - Industry Forecast 2024-2031
Report ID:
SQMIG45F2113 |
Region:
Global |
Published Date: June, 2024
Pages:
165
|Tables:
63
|Figures:
75
Buy Now Pay Later Market Insights
Buy Now Pay Later Market size was valued at USD 27.84 Bllion in 2022 and is poised to grow from USD 32.03 Billion in 2023 to USD 122.77 Billion by 2031, growing at a CAGR of 18.6% in the forecast period (2024-2031).
As the name suggests, buy now pay later is a service that lets people purchase products or pay for services later in interest-free installments. Rapidly evolving consumer preferences and growing use of installment-based payment plans are primary factors driving buy now pay later market growth. Rapid growth of the e-commerce industry and rising popularity of online sales channels have created an opportune setting for buy now pay later companies. Growing demand for flexible payment options and rising emphasis on improving financial inclusivity are also estimated to favor buy now pay later demand going forward. However, rising consumer debt levels, lack of consumer awareness, and intense competition are some key factors that slow down buy now pay later adoption.
US Buy Now Pay Later Market is poised to grow at a sustainable CAGR for the next forecast year.
Market Snapshot - 2024-2031
Global Market Size
Largest Segment
Large
Fastest Growth
Large
Growth Rate
26.1% CAGR
Global Buy Now Pay Later Market ($ Bn)
Country Share for North America Region (%)
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Buy Now Pay Later Market Segmental Analysis
The Market is segmented by channel, landing type, enterprise size, industry, and region. Based on channel, the market can be segmented into point of sale and online. Based on landing type market is segmented into point of sale, personal loans, private-level credit cards, general-purpose and credit cards. Based on enterprise size the market is segmented into large enterprises and SMEs. Based on industry, the market is segmented into e-commerce & retail, healthcare, automotive, and others. Based on region, the market is segmented into North America, Europe, Asia Pacific, Latin America and Middle East & Africa.
Analysis by Channel
Online channels are projected to spearhead the demand for buy now pay later over the coming years. The e-commerce boom in recent years and growing number of online payments are key contributors to the high market share of this segment. The demand for online buy now pay later solutions and services has especially picked up pace around the world after the COVID-19 pandemic back in 2020. Increasing collaborations between companies to provide online buy now pay later services will also help this segment bolster market growth going forward.
Growing number of retailers offering buy now pay later services for their customers are projected to boost market growth via the point of sale segment over the coming years. Digitization of the offline retail space and growing consumer awareness regarding buy now pay later services are all contributing to the rapid growth of this segment going forward.
Analysis by Industry
The e-commerce & retail industry is projected to account for a major chunk of the global buy now pay later market share. Rapid adoption of buy now pay later services and growing consumer acceptance of the same are helping this segment maintain its dominance. Evolution of consumer preferences and growing number of purchases by consumers through e-commerce are also expected to help promote market growth in the future.
On the other hand, the demand for buy now pay later in the healthcare space is slated to increase at a rapid pace. Rising healthcare costs are a key contributor to the growth of this segment. There is a lot of untapped potential for buy now pay later companies in the healthcare industry as treatments and drugs become more expensive than ever before.
Global Buy Now Pay Later Market By Enterprise Size
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Buy Now Pay Later Market Regional Insights
Presence of multiple financial organizations and buy now pay later providers in the North American region allows it to hold a high market share. High purchasing power of consumers and high awareness regarding buy now pay later services are also expected to help this segment maintain a dominant stance. Extensive integration of buy now pay later services in multiple offerings across various industry verticals is also expected to help this region maintain a high market share. Canada and the United States are estimated to be the top markets for buy now pay later companies in this region.
Meanwhile, the demand for buy now pay later in the Asia Pacific region is slated to increase at a robust CAGR over the coming years. The massive e-commerce boom in countries such as India and China is majorly helping this region become a key name in the global buy now pay later market landscape. Evolving consumer preferences, growing disposable income, and rising availability of buy now pay later alternatives are other key factors that help buy now pay later demand in this region.
Global Buy Now Pay Later Market By Region
- Largest
- Fastest
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Buy Now Pay Later Market Dynamics
Driver
Rising Demand for Flexible Payment Alternatives
- Consumer preferences have been evolving rapidly and this evolution has led to high preference and demand for flexible payment options. Buy now pay later services offer just that by allowing consumers to purchase the product in easy installments to ease the financial burden of purchase thereby driving market growth.
Adoption in Offline Retail
- Buy now pay later solutions and services are widely used and accepted in online retail and e-commerce channels but their increasing adoption in offline retail establishments is projected to bolster market development in the future. Growing availability of buy now pay later in brick and mortar stores will help companies expand their business scope.
Restraints
Concerns Regarding Bad Debt
- Buy now pay later companies provide their services to a broader spectrum of consumers and some of them might not have a good credit history which leads to an increase in the amount of bad debt that buy now pay later companies carry. Concerns regarding this bad debt could hamper the overall growth potential of the market.
Lack of Consumer Awareness
- Although buy now pay later is a popular service known to many, lack of consumer awareness still is a major restraint for market growth. This is especially true for underdeveloped economies where the retail landscape is not as developed. This inhibits market players from unlocking the full potential of market growth in the future.
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Buy Now Pay Later Market Competitive Landscape
Buy now pay later companies are expected to focus on partnerships to expand their business scope. Providing seamless integration of buy now pay later solutions with existing payment infrastructure will also be essential for buy now pay later companies to improve their business scope in the future. Growing adoption of buy now pay later in offline retail establishments will also offer lucrative opportunities in the long run. Offering no-interest and low-interest payment options will also be a popular strategy for all buy now pay later providers.
Top Players Company Profiles
- Affirm Holdings Inc. (United States)
- Klarna Bank AB (Sweden)
- Splitit Payments, Ltd. (United States)
- Sezzle (United States)
- Perpay Inc. (United States)
- Zip Co, Ltd (Australia)
- Paypal (United States)
- AfterPay Limited (Australia)
- Openpay (Australia)
- LatitudePay Financial Services (Australia)
- HSBC Group (United Kingdom)
- Amazon Hub Counter (United States)
- LazyPay (India)
- Flexmoney (India)
- MobiKwik (India)
- ZestMoney (India)
- Flipkart (India)
- Simpl (India)
- Paytm KYC Point (India)
- ePayLater (India)
Recent Development
- In June 2024, PayPal Ventures led a Series A funding round for Gynger, a company providing buy now pay later services for enterprises making technology purchase. The financing round was closed at USD 20 million.
- Zilch, a British fintech start-up founded in 2018, announced the launch of its new buy now pay later service for expensive purchases in February 2024. The ‘Pay over 3 months’ plan allows Zilch users to pay a 25% upfront amount of the purchase and the rest of it in installments of 3 months.
Buy Now Pay Later Key Market Trends
- Targeting New Industry Verticals: Currently, buy now pay later companies are generating most of their revenue from the e-commerce and retail industry. This is why diversifying into other verticals such as healthcare and automotive will be crucial in realizing the full potential of the market in the future.
Buy Now Pay Later Market SkyQuest Analysis
SkyQuest’s ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Services team that Collects, Collates, Correlates, and Analyses the Data collected by means of Primary Exploratory Research backed by robust Secondary Desk research.
As per SkyQuest analysis, evolving consumer preferences and rising availability of buy now pay later solutions and services are primarily driving market growth. On the contrary, bad debt concerns, high competition, and lack of awareness are expected to slow down buy now pay later adoption in the future. The presence of multiple buy now pay later providers and strong awareness regarding buy now pay later are helping North America secure the top spot in the global buy now pay later market. Most revenue for buy now pay later companies is estimated to come from the e-commerce and retail industry going forward. Providing buy now pay later solutions and services for new industry verticals apart from retail will be crucial in generating new business for buy now pay later companies in the long run.
| Report Metric | Details |
|---|---|
| Market size value in 2022 | USD 27.84 Bllion |
| Market size value in 2031 | USD 122.77 Billion |
| Growth Rate | 18.6% |
| Base year | 2023 |
| Forecast period | 2024-2031 |
| Forecast Unit (Value) | USD Billion |
| Segments covered |
|
| Regions covered | North America (US, Canada), Europe (Germany, France, United Kingdom, Italy, Spain, Rest of Europe), Asia Pacific (China, India, Japan, Rest of Asia-Pacific), Latin America (Brazil, Rest of Latin America), Middle East & Africa (South Africa, GCC Countries, Rest of MEA) |
| Companies covered |
|
| Customization scope | Free report customization with purchase. Customization includes:-
|
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Table Of Content
Executive Summary
Market overview
- Exhibit: Executive Summary – Chart on Market Overview
- Exhibit: Executive Summary – Data Table on Market Overview
- Exhibit: Executive Summary – Chart on Buy Now Pay Later Market Characteristics
- Exhibit: Executive Summary – Chart on Market by Geography
- Exhibit: Executive Summary – Chart on Market Segmentation
- Exhibit: Executive Summary – Chart on Incremental Growth
- Exhibit: Executive Summary – Data Table on Incremental Growth
- Exhibit: Executive Summary – Chart on Vendor Market Positioning
Parent Market Analysis
Market overview
Market size
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- SWOT Analysis
KEY MARKET INSIGHTS
- Technology Analysis
- (Exhibit: Data Table: Name of technology and details)
- Pricing Analysis
- (Exhibit: Data Table: Name of technology and pricing details)
- Supply Chain Analysis
- (Exhibit: Detailed Supply Chain Presentation)
- Value Chain Analysis
- (Exhibit: Detailed Value Chain Presentation)
- Ecosystem Of the Market
- Exhibit: Parent Market Ecosystem Market Analysis
- Exhibit: Market Characteristics of Parent Market
- IP Analysis
- (Exhibit: Data Table: Name of product/technology, patents filed, inventor/company name, acquiring firm)
- Trade Analysis
- (Exhibit: Data Table: Import and Export data details)
- Startup Analysis
- (Exhibit: Data Table: Emerging startups details)
- Raw Material Analysis
- (Exhibit: Data Table: Mapping of key raw materials)
- Innovation Matrix
- (Exhibit: Positioning Matrix: Mapping of new and existing technologies)
- Pipeline product Analysis
- (Exhibit: Data Table: Name of companies and pipeline products, regional mapping)
- Macroeconomic Indicators
COVID IMPACT
- Introduction
- Impact On Economy—scenario Assessment
- Exhibit: Data on GDP - Year-over-year growth 2016-2022 (%)
- Revised Market Size
- Exhibit: Data Table on Buy Now Pay Later Market size and forecast 2021-2027 ($ million)
- Impact Of COVID On Key Segments
- Exhibit: Data Table on Segment Market size and forecast 2021-2027 ($ million)
- COVID Strategies By Company
- Exhibit: Analysis on key strategies adopted by companies
MARKET DYNAMICS & OUTLOOK
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- Regulatory Landscape
- Exhibit: Data Table on regulation from different region
- SWOT Analysis
- Porters Analysis
- Competitive rivalry
- Exhibit: Competitive rivalry Impact of key factors, 2021
- Threat of substitute products
- Exhibit: Threat of Substitute Products Impact of key factors, 2021
- Bargaining power of buyers
- Exhibit: buyers bargaining power Impact of key factors, 2021
- Threat of new entrants
- Exhibit: Threat of new entrants Impact of key factors, 2021
- Bargaining power of suppliers
- Exhibit: Threat of suppliers bargaining power Impact of key factors, 2021
- Competitive rivalry
- Skyquest special insights on future disruptions
- Political Impact
- Economic impact
- Social Impact
- Technical Impact
- Environmental Impact
- Legal Impact
Market Size by Region
- Chart on Market share by geography 2021-2027 (%)
- Data Table on Market share by geography 2021-2027(%)
- North America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- USA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Canada
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Europe
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Germany
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Spain
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- France
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- UK
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Europe
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Asia Pacific
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- China
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- India
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Japan
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Korea
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Asia Pacific
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Latin America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Brazil
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of South America
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Middle East & Africa (MEA)
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- GCC Countries
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Africa
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of MEA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
KEY COMPANY PROFILES
- Competitive Landscape
- Total number of companies covered
- Exhibit: companies covered in the report, 2021
- Top companies market positioning
- Exhibit: company positioning matrix, 2021
- Top companies market Share
- Exhibit: Pie chart analysis on company market share, 2021(%)
- Total number of companies covered
Methodology
For the Buy Now Pay Later Market, our research methodology involved a mixture of primary and secondary data sources. Key steps involved in the research process are listed below:
1. Information Procurement: This stage involved the procurement of Market data or related information via primary and secondary sources. The various secondary sources used included various company websites, annual reports, trade databases, and paid databases such as Hoover's, Bloomberg Business, Factiva, and Avention. Our team did 45 primary interactions Globally which included several stakeholders such as manufacturers, customers, key opinion leaders, etc. Overall, information procurement was one of the most extensive stages in our research process.
2. Information Analysis: This step involved triangulation of data through bottom-up and top-down approaches to estimate and validate the total size and future estimate of the Buy Now Pay Later Market.
3. Report Formulation: The final step entailed the placement of data points in appropriate Market spaces in an attempt to deduce viable conclusions.
4. Validation & Publishing: Validation is the most important step in the process. Validation & re-validation via an intricately designed process helped us finalize data points to be used for final calculations. The final Market estimates and forecasts were then aligned and sent to our panel of industry experts for validation of data. Once the validation was done the report was sent to our Quality Assurance team to ensure adherence to style guides, consistency & design.
Analyst Support
Customization Options
With the given market data, our dedicated team of analysts can offer you the following customization options are available for the Buy Now Pay Later Market:
Product Analysis: Product matrix, which offers a detailed comparison of the product portfolio of companies.
Regional Analysis: Further analysis of the Buy Now Pay Later Market for additional countries.
Competitive Analysis: Detailed analysis and profiling of additional Market players & comparative analysis of competitive products.
Go to Market Strategy: Find the high-growth channels to invest your marketing efforts and increase your customer base.
Innovation Mapping: Identify racial solutions and innovation, connected to deep ecosystems of innovators, start-ups, academics, and strategic partners.
Category Intelligence: Customized intelligence that is relevant to their supply Markets will enable them to make smarter sourcing decisions and improve their category management.
Public Company Transcript Analysis: To improve the investment performance by generating new alpha and making better-informed decisions.
Social Media Listening: To analyze the conversations and trends happening not just around your brand, but around your industry as a whole, and use those insights to make better Marketing decisions.
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