Global Buy Now Pay Later (BNPL) Market Size Zooming More Than 4X to Reach USD 86.85 Billion by 2029

Published | 25 May 2023

Global buy now pay later (BNPL) market is flourishing due to the increasing demand for installment-based payments, the rising adoption of alternate financing options by retailers, and the convenient and affordable nature.

BlueWeave Consulting, a leading strategic consulting and market research firm, in its recent study, estimated the global buy now pay later (BNPL) market size at USD 20.54 billion in 2022. BlueWeave expects the global buy now pay later (BNPL) market size to grow at a robust CAGR of 22.8% during the forecast period between 2023 and 2029 reaching a value of USD 86.85 billion by 2029. The increasing demand for installment-based payments, the rising adoption of alternate financing options by retailers, and the convenient and affordable nature of the buy now pay later model are some of the major which will likely propel the market growth. In addition, the increase in the adoption of buy now pay later payment technology among the youth as it offers several benefits, such as buying high-cost smartphones & laptops, paying tuition fees & stationery products, and paying canteen bills, will further accelerate the growth of the global buy now pay later (BNPL) market. According to a ZestMoney survey, in January 2022, BNPL emerged as the favorite choice for people of all ages, with the youngest client being 18 years old and the oldest being 66. The poll also discovered that men in Tier 1 and 2 cities spent a lot of money on lifestyle and fashion, while women in Tier 1 and 2 cities spent a lot of money on improving their edtech courses for upskilling and electronics.

Opportunity: Increasing adoption of buy now pay later by retailers

Online platforms made shopping more convenient and no-contact. All purchases were made on the Internet. On purchases over a certain amount, online platforms do not offer EMI payment options. The BNPL model is unique to the e-commerce sector. There has been a rise in online shoppers for high-end products as a result of the e-commerce boom. Online platforms were eroding the market share of traditional firms. A rising number of retailers are implementing the buy now pay later strategy to compete with online distribution platforms. Buy now pay later is assisting them in increasing their customer base by allowing more people to purchase things that were previously out of their price range. The increase in customers leads to an increase in sales. Therefore, increasing the adoption of buy now pay later by retailers I expected to create ample opportunities for market growth.

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Challenge: Expensive integration of buy now pay later model

Integration of buy now pay later can be expensive, which may hamper the growth of the market in the coming years. One of the most important factors is the requirement for specialized technology and infrastructure to assist the integration process. BNPL providers assess credit risk, handle transactions, and offer real-time approval and payment choices using sophisticated software and algorithms. Integrating these technologies with the merchant's existing technology might be difficult and time-consuming. Another aspect that might raise the cost of integration is the requirement for regulatory compliance. A variety of regulatory obligations apply to BNPL providers, including data protection, anti-money laundering, and consumer protection regulations. Integrating with a BNPL provider necessitates merchants ensure that their systems are compliant with these standards, which can increase the cost of integration. These factors are anticipated to limit the growth of the global buy now pay later (BNPL) market.

Impact of COVID-19 on the Global Buy Now Pay Later (BNPL) Market

The COVID-19 pandemic had a significant impact on the size of the global buy now pay later market. The market grew dramatically during the COVID-19 pandemic, due to a spike in the number of consumers purchasing things online to limit the widespread of the coronavirus. Furthermore, major payment solution providers such as Visa and Mastercard announced a collaboration to offer affordable installment financing services, which accelerated the market growth during the pandemic outbreak. Furthermore, an increase in customer spending on health care, the cost of luxury electronic products, and in the use of online payment services is also an important factor driving the growth of the market during the COVID-19 outbreak.

Global Buy Now Pay Later (BNPL) Market - By Channel

Based on channel, the global buy now pay later (BNPL) market is split into online and POS segments. The online channel segment dominated the market and accounted for a significant share of the global revenue. Several firms across the world are signing agreements to focus on the adoption of the fastest-growing online payment options, such as buy now pay later, as part of their post-pandemic resurgence plans. For instance, Uplift, Inc., a BNPL solution provider, established a relationship with Tripster, an all-in-one trip booking site, in August 2021.

Global Buy Now Pay Later (BNPL) Market - By Application

Based on application, the global buy now pay later (BNPL) market is segmented into retail goods, media & entertainment, healthcare & wellness, automotive, home improvement, and others. Healthcare & wellness is expected to be the fastest-growing application segment during the forecast period, due to rising treatment costs for various severe conditions such as chronic heart disease, cancer, and cardiovascular disorders. Furthermore, as there increased number of people affected with COVID-19 pandemic, as does the demand for treatment, people all over the world are turning to buy now pay later services, which is expected to be a lucrative opportunity for the buy now pay later market in the healthcare industry.

Global Buy Now Pay Later (BNPL) Market - By Region

The global buy now pay later (BNPL) market is dominated by the North America region. North America is expected to hold a significant share during the forecast period. The buy now pay later trend is gaining traction throughout the region, as it allows clients to get credit and defer payments. Furthermore, millennial and Gen Z shoppers are driving the region's adoption of buy now pay later solutions. The region's increasing mobile internet adoption is likely to generate further potential prospects for the regional industry throughout the forecast period.

Competitive Landscape

The global buy now pay later (BNPL) market is highly competitive, with all the players continually competing to gain a larger market share. The key players are Affirm Holdings Inc., Afterpay, Klarna Bank AB, Laybuy Group Holdings Limited, PayPal Holdings Inc., Payl8r (Social Money Ltd), Perpay Table, LazyPay, Sezzle, and Splitit. The key marketing strategies adopted by the players are facility expansion, product diversification, alliances, collaborations, partnerships, and acquisition to expand their customer reach and gain a competitive edge in the overall market.

Don’t miss the business opportunity of the Global Buy Now Pay Later (BNPL) Market. Consult our analysts to gain crucial insights and facilitate your business growth.

The report's in-depth analysis provides information about growth potential, upcoming trends, and the Global Buy Now Pay Later (BNPL) Market statistics. It also highlights the factors driving forecasts of total market size. The report promises to provide recent technology trends in the Global Buy Now Pay Later (BNPL) Market along with industry insights to help decision-makers make sound strategic decisions. Furthermore, the report also analyses the growth drivers, challenges, and competitive dynamics of the market.

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