BNPL usage in the U.S. experienced a decline in 2022
While the value of BNPL payments in the country is projected to nearly double between 2022 and 2026, the growth rate of BNPL payments is expected to significantly decrease during that period. Moreover, although the number of BNPL users is projected to increase, the growth rate of new users is also expected to decline. A survey cited in report indicates a slight decrease in the share of respondents who currently use BNPL services from 2021 to 2022. As a result, BNPL, with a low single-digit percentage, ranked last among payment methods used at least 5 times per month in North America, suggesting that the initial surge in BNPL adoption in the country has slowed down.
Klarna maintains its dominance in the U.S. BNPL market
With the growing adoption of BNPL services in the country, BNPL providers have witnessed an increase in their user base. Klarna emerged as the most popular BNPL platform, chosen by over 3 out of 10 BNPL users. Afterpay followed as the second most used BNPL platform, with Affirm ranking third. Regarding the product categories financed through BNPL services by U.S. adults, major appliances, electronics, and home furnishings were the top three. While larger product categories remain common for BNPL purchases, there is also a shift towards financing smaller purchases. As of January-February 2023, BNPL orders for groceries experienced double-digit annual growth, and apparel saw a single-digit percentage increase as well.
Questions Covered?
1. What was the size of the U.S. BNPL market in 2022 and how is it projected to grow through 2026?
2. How is the number of BNPL users in the U.S. projected to develop until 2026?
3. What is the attitude of online shoppers that are affected by the inflation towards using BNPL services?
4. Which product categories were the most popular for purchases made using BNPL in the U.S. in 2022?
5. Who are the most prominent BNPL providers in the U.S.?
Countries Covered
- USA
- Canada
Please note: For this report, the purchase of an Enterprise license allows up to ten worldwide users of an organization access to the report
Table of Contents
1. Management Summary
2. Global Overview
- BNPL Industry and Trends Overview, June 2023
- Overview of BNPL Concerns and Regulations, June 2023
- BNPL Market Size, in USD billion, 2022e & 2027f
- Number of BNPL Users, in millions, 2022e & 2027f
- Share of BNPL Accounting for Total B2C E-Commerce Transaction Value, in %, 2022
- Payment Methods Used At Least 5 Times Per Month, in % of Respondents, September 2022
- Market Shares of BNPL Services, in % of Top B2C E-Commerce Websites Supporting BNPL as a Payment Method, March 2023
- Overview of Apple Pay Later, June 2023
- Overview of Klarna’s Activities in BNPL Landscape, June 2023
- Number of Klarna’s Users, in millions, & Year-on-Year Change, in %, 2019-2022
- Number of Afterpay’s Active Users, in millions, & Year-on-Year Change, in %, December 2019, December 2020, December 2021, March 2022
- Number of Afterpay’s Active Sellers, in thousands, & Year-on-Year Change, in %, December 2019, December 2020, December 2021, March 2022
- Number of Affirms’s Active Users, in millions, & Year-on-Year Change, in %, June 2019-2022
3. North America
3.1. Regional
- Payment Methods Used At Least 5 Times Per Month, in % of Respondents, September 2022
3.2. USA
- Overview of BNPL Market and Trends, June 2023
- BNPL Payment Value, in USD billion, & Year-on-Year Change, in %, 2021-2026f
- BNPL Users, in millions, & Penetration, in % of Internet Users, 2021-2026f
- Payment Methods Used for Online Purchases, in % of Current Apple Customers, March 2023
- BNPL User Penetration, by Generation, in % of Digital Buyers, 2022e & 2026f
- Share of Respondents Currently Using BNPL, in %, 2021 & 2022e
- Share of Respondents Interested in Future BNPL Use, in %, 2021 & 2022e
- Annual Growth of Online BNPL Purchase Share & BNPL Revenue, in % of Year-on-Year Growth, 2022 vs January-February 2023
- Share of Holiday Shoppers Who Say Having Buy Now Pay Later Options Will Be Essential to Them, in %, September 2022
- Share of Holiday Shoppers Who Say Having Buy Now Pay Later Options is Nice to Have But Not Essential, in %, September 2022
- Attitude Towards Switching Payment Method if the Cost-of-Living Increases Significantly and New Payment Method of Choice if Switched, in %, September 2022
- Breakdown of BNPL Users’ BNPL Usage Patterns, in %, August 2022
- BNPL Payment Terms, by Type of Credit Card Use, in % of BNPL Users, August 2022
- Share of BNPL Users Who Expect to Increase Their Use of BNPL, by Type of BNPL Users, in %, August 2022
- Share of Respondents Who Trust Organizations to Provide a Secure Environment for Payments and Purchasing, in % of Respondents, September 2022
- Most Valuable BNPL Reward Features, in % of BNPL Users, July 2022
- Preferences of BNPL Users if BNPL Was Not Offered, in %, August 2022
- Share of Adults Willing to Use BNPL Credit to Make a Purchase, by Product Category, in % of Adults, February 2022
- Annual Increase of BNPL Orders, by Product Category, in %, January-February 2023
- Top Reasons Non-Accepting Merchants Are Not Interested in Offering BNPL, in % of Online Merchants, 2022e
- Top 3 BNPL Platforms Used, in % of BNPL Users, June 2022
3.3. Canada
- Top Reasons Non-Accepting Merchants Are Not Interested in Offering BNPL, in % of Online Merchants, 2022e
- Share of Respondents Who Have Not Heard of BNPL Services Before, in %, July 2022
- Share of Respondents Who Have Not Used BNPL Due to Lack of Need for It, in %, July 2022
Companies Mentioned (Partial List)
A selection of companies mentioned in this report includes, but is not limited to:
- Klarna
- Afterpay
- Affirm
- Apple Pay Later
- Paypal
- Sezzle
