Buy Now Pay Later Services Market Report 2026

The buy now pay later services market size has grown exponentially in recent years. It will grow from $10.87 billion in 2025 to $14.09 billion in 2026 at a compound annual growth rate (CAGR) of 29.6%. The growth in the historic period can be attributed to growth of online shopping activity, increasing consumer demand for payment flexibility, expansion of digital checkout solutions, rising acceptance of alternative credit models, rapid growth of fintech platforms.

The buy now pay later services market size is expected to see exponential growth in the next few years. It will grow to $37.21 billion in 2030 at a compound annual growth rate (CAGR) of 27.5%. The growth in the forecast period can be attributed to increasing regulatory oversight of bnpl services, rising demand for transparent repayment structures, expansion of bnpl into offline retail channels, growing partnerships between banks and bnpl providers, increasing focus on responsible lending frameworks. Major trends in the forecast period include rising integration of bnpl at checkout, expansion of merchant-partnered financing models, growing use of AI-based credit assessment, increasing adoption of mobile-first bnpl platforms, enhanced focus on flexible repayment options.

The rapid growth of e-commerce is expected to drive the expansion of the buy now, pay later (BNPL) services market in the coming years. E-commerce refers to the purchase and sale of goods and services through digital channels such as websites, mobile applications, and other online platforms. Its expansion is fueled by technological advancements, evolving consumer preferences, changing market dynamics, and increased global connectivity. BNPL services play a vital role in strengthening the e-commerce ecosystem by enhancing the shopping experience, improving conversion rates, increasing average order values, attracting new customers, and reducing cart abandonment. These services offer consumers greater financial flexibility while providing merchants with competitive advantages in a crowded online marketplace. For example, in May 2024, according to the United States Department of Commerce, a US-based government agency, retail e-commerce sales reached $289.2 billion in the first quarter of 2024, representing a 2.1% increase compared with the fourth quarter of 2023. Therefore, the continued expansion of e-commerce is fueling the growth of the buy now, pay later services market.

Companies operating in the buy now, pay later services market are increasingly focusing on developing innovative solutions, such as unified BNPL integration platforms, to address rising demand for flexible payment options, higher conversion rates, and reduced checkout friction. Unified BNPL platforms enable merchants and payment service providers to integrate once and gain access to multiple BNPL providers across different regions, rather than managing separate integrations for each provider. For instance, in November 2025, PPRO Financial Ltd., a UK-based payments infrastructure company, launched Buy Now Pay Local, a unified BNPL integration solution designed for merchants and PSPs across Europe. This platform offers a single integration point that connects to a curated network of locally preferred BNPL providers, including Scalapay, Floa, and BLIK Pay Later, allowing merchants to offer deferred and installment-based payment options without the complexity of multiple integrations.

In July 2023, Upgrade Inc., a US-based fintech company, acquired Uplift Inc. for $100 million. Through this acquisition, Upgrade aimed to expand its BNPL capabilities by leveraging Uplift’s technology and industry expertise to deliver more flexible financing solutions across a broader range of consumer segments. This move supports Upgrade’s strategy to drive growth and strengthen its market position within the evolving financial technology landscape. Uplift Inc. is a US-based provider of buy now, pay later services serving multiple industries.

Major companies operating in the buy now pay later services market are Klarna Bank AB, Affirm Holdings Inc, Zip Co Limited, Sezzle Inc, Openpay Pty Ltd, Zilch Technology Limited, Atome Financial, Scalapay Srl, Laybuy Holdings Limited, Billie GmbH, ViaBill Inc, Splitit Payments Ltd, Payright Ltd, FuturePay Holdings Inc, LazyPay, Zest Money, Humm Group Limited, LatitudePay, Tabby FZ LLC, Tamara FZE, Postpay Limited, PayPal Holdings Inc.

North America was the largest region in the buy now pay later services market in 2025. North America is expected to be the fastest-growing region in the forecast period. The regions covered in the buy now pay later services market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the buy now pay later services market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The buy now pay later services market includes revenues earned by entities by providing services such as interest-free installments, deferred payments, fixed-term financing, and subscription services. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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