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United States Buy Now Pay Later Market

United States Buy Now Pay Later Market, By Channel (Online, Point-of-Sale, and Others), By Enterprise Size (Large Enterprise, Small & Medium Enterprises), By End-User (Consumer Electronics, Fashion & Garment, Healthcare, Leisure & Entertainment, Retail, and Others), Trend Analysis, Competitive Market Share & Forecast, 2018-2028

  • Published Date: July 2022
  • Report ID: BWC22244
  • Available Format: PDF
  • Page: 114

Report Overview

United States Buy Now Pay Later Market is flourishing owing to digitization, growing merchant use, a rise in young people using products and services repeatedly along with the entry of new companies who provide loans through BNPL services...

United States Buy Now Pay Later Market - Industry Trends & Forecast Report 2028

United States Buy Now Pay Later Market is predicted to grow at a CAGR of 27.5% during the forecast period (2022-2028). The rapid expansion of the market is predominantly due to the acceptance of BNPL items has dramatically increased in the United States over the previous four to eight quarters. The country has seen a significant increase in the use of BNPL (Buy Now Pay Later) products like those provided by Klarna, Afterpay, Affirm, and PayPal as a result of the COVID-19 epidemic and the growing desire to spread out the expense of purchases over some time. Additionally, the increase in internet shopping during the COVID-19  pandemic has contributed to the growth in volumes for these Buy Now Pay Later (BNPL) suppliers.

Buy Now Pay Later - Overview

A short-term financing option called "buy now, pay later" enables people to acquire items they need daily, such as clothing, electronics, and home improvement supplies. It enables customers to make purchases and pay for them at a later time, frequently interest-free. Buy now, pay later (BNPL) agreements, often known as "point of sale installment loans," are quickly gaining popularity as a form of payment, particularly for online purchases. Customers and sellers both provide revenue to BNPL. If a consumer utilizes the BNPL facility, suppliers must pay BNPL a fee, that might range from 2 to 8 percent of the purchase price.

United States Buy Now Pay Later Market Forecast and Trends

Growth Drivers

Popular of Online Payment Options

A rise in the use of online payment methods among consumers in emerging nations is speeding up the growth of the buy now pay later sector. The three main digital payment methods are mobile payments, credit cards, and debit cards. These methods provide people various advantages such as quicker cash transactions, less transaction fees, and enhanced payment security, all of which help the market for buy now pay later grow. People are more likely to use online payment technologies when high-speed internet access is readily available, smartphone adoption is surging, and awareness of digital payment services is rising. As a result, the increasing acceptance of online payment methods is creating lucrative opportunities for the buy now pay later market to grow during the forecast period.

Growing Adoption of Convenient Payment Methods

People benefit from the buy now pay later payment method in a variety of ways, including affordable and convenient payment services, instant credit card fund transfer service at the point of sale (POS) platform, and increased personal information security, which drives the buy now pay later market's growth. Furthermore, the buy now pays later platform supports a QR-code option, allowing individuals to make a payment via scan code and to allow transactions via UPI methods, propelling market growth even further. Furthermore, the buy now, pay later platform allows consumers to make secure payments without using a debit card, which boasts the country’s market growth. The buy now platform's benefits to consumers and merchants drive the market.

Domestic BNPL Players are Concentrating their Efforts on Global Expansion.

Several players compete for market share in the United States. As a result, BNPL firms are pursuing mergers and acquisitions to accelerate growth and expand into other emerging markets across the country. For instance, PayPal announced the acquisition of Japan's leading BNPL platform Paidy in September 2021. The USD 2.7 billion deal will allow PayPal to broaden its capabilities, distribution, and relevance in the world's fastest-growing e-commerce market. Aside from Japan, PayPal's BNPL offering is available in markets such as Australia, the United Kingdom, and other European markets. Along with developing their global reach, well-established companies are increasingly aiming to enter the BNPL sector, which is driving up merger and acquisition activity. Moreover, square announced the acquisition of Afterpay in August 2021 to penetrate one of the consumer payments areas that are expanding the fastest. Notably, Square paid Afterpay a total of USD 29 billion to acquire them. This acquisition should aid Square in boosting its growth domestically and competing with PayPal, a significant participant in the global BNPL market.

Restraints

Buy Now, Pay Later Promotes Impulsive Purchasing

The increasing spending on purchases is one of the main reasons limiting the expansion of the United States buy now pay later sector. People who use the buy now pay later platforms can purchase goods and services without paying anything upfront. The market is being driven by the option to pay later. But this element may have an impact on the operations of participants in the purchase now pay later market. The buy-now, pay-later option may result in financial losses for the organizations. Consequently, this aspect is limiting the United States Buy Now Pay Later Market.

Impact of COVID-19 on United States Buy Now Pay Later Market

Market conditions have improved as a result of the COVID-19 epidemic. The global economic crisis has reduced household incomes, increasing the need for liquidity. Because of the pandemic, people now feel comfortable using a variety of online payment channels to buy things online. Moreover, amid difficult economic conditions, banks are frequently discouraged from extending credit. In these situations, BNPL solutions assist clients in making installment payments on their invoices. As a result, during the COVID-19 pandemic, BNPL transactions dramatically increased.

United States Buy Now Pay Later Market - By Channel

Based on the channel, the United States Buy Now Pay Later Market is segmented into Online, Point-of-Sale, and Others. Among these, the online segment accounts for the largest share in the United States Buy Now Pay Later Market. The use of online sales channels is expanding quickly as a result of the COVID-19 epidemic. The idea of "Buy now, pay later" is therefore popular in the online space. Through buy now pay later options, the monthly installments are accessible, enabling practical purchases over time. Moreover, the offline segment is expected to have the fastest growth during the forecast period (2022-2028). Giving point of sale (POS) purchase now pay later financing options is a priority for many firms nationwide to enhance customer experience and grow relationships with customers.

United States Buy Now Pay Later Market

United States Buy Now Pay Later Market – By Enterprise Size

Based on enterprise size, the United States Buy Now Pay Later Market is segmented into Large Enterprise, Small & Medium Enterprises. Among these, the large enterprise segment holds the largest market share. The buy now, pay later solution is widely used by large enterprises because it provides clients with a flexible and low-cost payment option for high-value items. Customers can buy more items as a result of the ease of shopping, which increases sales. Moreover, small and medium-sized enterprises, on the other hand, are expected to grow at the fastest rate in the coming years. To increase sales conversion rates, small and medium-sized businesses around the world are focusing on buy now, pay later solutions. Furthermore, buy now pay later provides greater transparency by disclosing all of its pricing and fees publicly. Small and medium-sized businesses prioritize customer acquisition.

United States Buy Now Pay Later Market - By End-User

Based on end-user, the United States Buy Now Pay Later Market is segmented into Consumer Electronics, Fashion & Garment, Healthcare, Leisure & Entertainment, Retail, and Others. The fashion and garment segment now has the biggest market share and is likely to continue to do so during the forecast period (2022-2028). The clothing and apparel sectors are expanding steadily. The clients benefit from several product discounts. When buyers have the option to pay later, it has been seen that sales in the apparel and fashion industries increase significantly. Moreover, over the projection period, the consumer electronics sector is anticipated to generate impressive growth. There is a wide variety of consumer electronics items on the market. Consumer electronics are typically purchased with credit cards. However, if consumers are given the option to pay later, the industry will flourish. The reason for this is that consumers want to save on credit cards compounding interest. This also saves consumers money and hidden costs.

Competitive Landscape

The leading market players in the United States Buy Now Pay Later Market are Sezzle, Klarna Bank AB, Afterpay, Laybuy Group Holdings Limited, PayPal, Perpay, Quadpay, Splitit, Payl8r, and other prominent players.

The United States Buy Now Pay Later Market is highly fragmented with the presence of several manufacturing companies in the country. The market leaders retain their supremacy by spending on research and development, incorporating cutting-edge technology into their goods, and releasing upgraded items for customers. Various tactics, including strategic alliances, agreements, mergers, and partnerships, are used.

Recent Development

  • In December 2021, Afterpay entered into a strategic partnership with Belk, the Southeastern regional departmental store. Under the collaboration, Belk will allow both online and in-store shoppers the ability to pay for their purchases using the Afterpay BNPL payment method. Since its alliance with Afterpay, Belk has also reported an increase of 50% in average order values for consumers using the payment method.
  • In September 2021, PayPal announced the acquisition of Japan-based leading BNPL platform Paidy. The US$2.7 billion acquisition will help PayPal to expand its capabilities, distribution, and relevance in the fastest-growing e-commerce market globally. Apart from Japan, the BNPL offering from PayPal is also available in markets such as Australia, the United Kingdom, and other European markets.

Scope of the Report

Attributes Details
Years Considered Historical data – 2018-2021
Base Year – 2021
Forecast – 2022 – 2028
Facts Covered Revenue in USD Million
Product Service/Segmentation By Channel, By Enterprise Size, By End-User
Key Players Sezzle, Klarna Bank AB, Afterpay, Laybuy Group Holdings Limited, PayPal, Perpay, Quadpay, Splitit, Payl8r, and other prominent players.

 

 

By Channel

  • Online
  • Point-of-Sale
  • Others

By Enterprise Size

  • Large Enterprise
  • Small & Medium Enterprises

By End-User

  • Consumer Electronics
  • Fashion & Garment
  • Healthcare
  • Leisure & Entertainment
  • Retail
  • Others
  1. Research Framework
    1. Research Objective
    2. Product Overview
    3. Market Segmentation
  2. Research Methodology
    1. Qualitative Research
      1. Primary and Secondary Products
    2. Quantitative Research
      1. Primary and Secondary Products
    3. Breakdown of Primary Research Respondents
      1. Secondary Research
      2. Primary Research
    4. Breakdown of Primary Research Respondents, By Industry Participants
    5. Market Breakdown & Data Triangulation
  3. Executive Summary
  4. United States Buy Now Pay Later Market Insights
    1. Industry Value Chain Analysis
    2. DROC Analysis
      1. Growth Drivers
      2. Restraints
      3. Opportunities
      4. Challenges
    3. Porter’s Five Forces Analysis
      1. Bargaining End-use Industry of Suppliers
      2. Bargaining End-use Industry of Buyers
      3. Threat of New Entrants
      4. Threat of Substitutes
      5. Intensity of Rivalry
    4. Recent Development
    5. PESTEL Analysis
  5. United States Buy Now Pay Later Market Overview
    1. Market Size & Forecast by Value, 2018-2030
      1. By Value (USD Million)
    2. Market Share & Forecast
      1. By Channel
        1. Online
        2. Point-of-Sale
        3. Others
      2. By Enterprise Size
        1. Large Enterprise
        2. Small & Medium Enterprises
      3. By End-User
        1. Consumer Electronics
        2. Fashion & Garment
        3. Healthcare
        4. Leisure & Entertainment
        5. Retail
        6. Others
  6. Competitive Landscape
    1. List of Key Players and their Offerings
    2. Company Market Share Analysis, 2021
    3. Competitive Benchmarking, By Operating Parameters
    4. Key Strategic Development (Merger, Acquisition, Partnership, etc.)
  7. Impact of Covid-19 Across Buy Now Pay Later Market
  8. Company Profile (Company Overview, Financial Matrix, Key Product landscape, Key Personnel, Key Competitors, Contact Address, and Strategic Outlook) *
    1. Sezzle
    2. Klarna Bank AB
    3. Afterpay
    4. Laybuy Group Holdings Limited
    5. PayPal
    6. Perpay
    7. Quadpay
    8. Splitit
    9. Payl8r
    10. Other Prominent Players
  9. Key Strategic Recommendations

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*Financial information in case of non-listed companies will be provided as per availability

**The segmentation and the companies are subjected to modifications based on in-depth secondary for the final deliverable

 

List of Figures

 

 Figure 1        United States Buy Now Pay Later Segmentation

Figure 2        United States Buy Now Pay Later Market Value Chain Analysis

Figure 3        Company Market Share Analysis, 2021

Figure 4        United States Buy Now Pay Later Market Size, By Value (USD Million), 2018-2028

Figure 5        United States Buy Now Pay Later Market Share, By Channel, By Value, 2018-2028

Figure 6        United States Buy Now Pay Later Market Share, By Enterprise Size, By Value, 2018-2028

Figure 7        United States Buy Now Pay Later Market Share, By End-User, By Value, 2018-2028

 

List of Tables

 

Table 1         United States Buy Now Pay Later Market Size, By Channel, By Value, 2018-2028       

Table 2   United States Buy Now Pay Later Market Size, By Enterprise Size, By Value, 2018-2028                                 

Table 3   United States Buy Now Pay Later Market Size, By End-User, By Value, 2018-2028                                           

Table 4         Sezzle Company Overview                                        

Table 5         Sezzle Financial Overview                                         

Table 6         Klarna Bank AB Company Overview                                      

Table 7         Klarna Bank AB Financial Overview                                       

Table 8         Afterpay Company Overview                                      

Table 9          Afterpay Financial Overview                                      

Table 10        Laybuy Group Holdings Limited Company Overview                                    

Table 11        Laybuy Group Holdings Limited Financial Overview                                     

Table 12        PayPal Company Overview                                        

Table 13        PayPal Financial Overview                                         

Table 14        Perpay Company Overview                                        

Table 15        Perpay Financial Overview                                         

Table 16        Quadpay Company Overview        

Table 16        Quadpay Financial Overview                            

Table 18        Splitit Company Overview                                         

Table 19        Splitit Financial Overview             

Table 20        Payl8r Company Overview                                         

Table 21        Payl8r Financial Overview                                

                           

Market Segmentation

By Channel

  • Online
  • Point-of-Sale
  • Others

By Enterprise Size

  • Large Enterprise
  • Small & Medium Enterprises

By End-User

  • Consumer Electronics
  • Fashion & Garment
  • Healthcare
  • Leisure & Entertainment
  • Retail
  • Others
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Frequently Asked Questions (FAQs):

Ans: The online segment accounted for the largest share in the United States Buy Now Pay Later Market.
Ans: United States Buy Now Pay Later Market is growing at a CAGR of 27.5% by the end of 2028.
Ans: Online segment has the largest share in the United States Buy Now Pay Later Market.
Ans: The key players in the United States Buy Now Pay Later Market are Sezzle, Klarna Bank AB, Afterpay, Laybuy Group Holdings Limited, PayPal, Perpay, Quadpay, Splitit, Payl8r, and other prominent players.
Ans: The major factors driving the growth of the United States Buy Now Pay Later Market are digitization, growing merchant use, a rise in young people using products and services repeatedly along with the entry of new companies who provide loans through BNPL services.