United Kingdom Buy Now Pay Later Business and Investment Opportunities Databook - 75+ KPIs on BNPL Market Size, End-Use Sectors, Market Share, Product Analysis, Business Model, Demographics - Q2 2024 Update

The BNPL payments in the country are expected to grow by 15.0% on an annual basis to reach US$34.28 billion in 2024.

The medium to long-term growth story of the BNPL industry in the country remains strong. BNPL payment adoption is expected to grow steadily over the forecast period, recording a CAGR of 9.8% during 2024-2029. The BNPL gross merchandise value in the country will increase from US$29.80 billion in 2023 to reach US$54.62 billion by 2029.Amid the cost-of-living crisis, an ever-increasing number of Britons are turning to buy now pay later schemes to pay their bills. The trend is projected to continue further over the medium term. This will support the growth of the BNPL industry in the United Kingdom in 2024. To tap into the rising demand, providers are also launching new products to boost revenue and business growth.

Key Developments in the BNPL Sector in United Kingdom

The UK's BNPL sector has seen significant growth due to rising consumer demand. Here are the key trends and product developments:

Product Launches and Innovations

Flava's BNPL Option: Flava, an online grocery store, has introduced a BNPL payment option aimed at helping struggling families manage their grocery expenses. This move signifies a diversification in the categories of products available for BNPL, extending beyond traditional retail to essential items like groceries.

Around the world, grocers are exploring buy now, pay later (BNPL) capabilities to offer instalment options to consumers struggling with inflation.

In the United Kingdom, for instance, BNPL is getting one step closer to making its way into grocery stores. Klarna announced a partnership with British supermarket giant Sainsbury’s to provide split payments via the retailer’s Argos, Habitat and TU eCommerce platforms.

Strategic Partnerships

Klarna and Airbnb: Klarna has partnered with Airbnb to allow travellers in the UK to use BNPL for their bookings. This collaboration enables customers to pay for reservations priced between £35 and £4,000 over time, expanding Klarna's reach into the travel sector and providing consumers with more flexible payment options for travel expenses

Mergers and Acquisitions

Klarna's Acquisitions: Klarna has actively pursued acquisitions to enhance its service offerings. This includes acquiring technology firms that can improve its payment solutions and customer experience, although specific details on the companies acquired were not disclosed in the recent reports.

Regulatory Changes

The UK's regulatory landscape for Buy Now Pay Later (BNPL) services has seen significant developments, with comprehensive regulations still pending. Here are the key updates and government policies:

Draft Legislation Delays: The UK Treasury announced a delay in implementation draft legislation intended to regulate BNPL products. This postponement has been attributed to discussions with the BNPL industry, which expressed concerns about the potential impact of stringent regulations on their operations. The government aims to avoid overly heavy-handed regulation that could drive providers out of the market.

Concerns Over Consumer Debt: The regulatory focus has been partly driven by concerns over rising consumer debt levels associated with BNPL usage. Reports indicate that many number of BNPL customers have faced arrears, highlighting the need for effective regulation to protect consumers from falling into debt traps.

Implementation of Consumer Duty Rules: In July 2023, the Financial Conduct Authority (FCA) implemented its Consumer Duty rules, which require BNPL firms to act responsibly and transparently towards customers. This regulation aims to ensure that consumers are fully informed about the risks associated with BNPL products, helping to protect vulnerable customers from accumulating debt.

The BNPL payment industry in United Kingdom has recorded strong growth over the last four quarters, supported by increased e-commerce penetration.

This report provides a detailed data-centric analysis of the Buy Now Pay Later (BNPL) industry, covering market opportunities and risks across a range of retail categories. With over 75 KPIs at the country level, this report provides a comprehensive understanding of BNPL market dynamics, market size and forecast, and market share statistics.

It breaks down market opportunities by type of business model, sales channels (offline and online), and distribution models. In addition, it provides a snapshot of consumer behaviour and retail spending dynamics. KPIs in both value and volume terms help in getting an in-depth understanding of end market dynamics.

The publisher’s research methodology is based on industry best practices. Its unbiased analysis leverages a proprietary analytics platform to offer a detailed view of emerging business and investment market opportunities.

Scope

This report provides in-depth, data-centric analysis of Buy Now Pay Later industry in United Kingdom through 55 tables and 71 charts. Below is a summary of key market segments:

United Kingdom BNPL Market Size and Spending Pattern, 2020-2029

• Gross Merchandise Value Trend Analysis
• Average Value Per Transaction Trend Analysis
• Transaction Volume Trend Analysis

United Kingdom Buy Now Pay Later Revenue Analysis, 2020-2029

• Buy Now Pay Later Revenues
• Buy Now Pay Later Share by Revenue Segments
• Buy Now Pay Later Revenue by Merchant Commission
• Buy Now Pay Later Revenue by Missed Payment Fee Revenue
• Buy Now Pay Later Revenue by Pay Now & Other Income

United Kingdom Buy Now Pay Later Operational KPIs & Statistics, 2020-2029

• Buy Now Pay Later Active Consumer Base
• Buy Now Pay Later Bad Debt

United Kingdom BNPL by Purpose, 2020-2029

• Convenience - Short Term Loans
• Credit - Long Term Loans

United Kingdom BNPL by Business Model, 2020-2029

• Two-Party (BNPL offered by retailers)
• Three-Party BNPL Offering

United Kingdom BNPL by Merchant Ecosystem, 2020-2029

• Open Loop System
• Closed Loop System

United Kingdom BNPL by Distribution Model Analysis, 2020-2029

• Standalone
• Banks & Payment Service Providers
• Marketplaces

United Kingdom Buy Now Pay Later Market Share Analysis by Key Players

United Kingdom BNPL Analysis by Channel, 2020-2029

• Online Channel
• POS Channel

United Kingdom Buy Now Pay Later in Retail Shopping: Market Size and Forecast, 2020-2029

• Gross Merchandise Value Trend Analysis
• Average Value Per Transaction Trend Analysis
• Transaction Volume Trend Analysis

United Kingdom Buy Now Pay Later in Home Improvement: Market Size and Forecast, 2020-2029

• Gross Merchandise Value Trend Analysis
• Average Value Per Transaction Trend Analysis
• Transaction Volume Trend Analysis

United Kingdom Buy Now Pay Later in Travel: Market Size and Forecast, 2020-2029

• Gross Merchandise Value Trend Analysis
• Average Value per Transaction Trend Analysis
• Transaction Volume Trend Analysis

United Kingdom Buy Now Pay Later in Media and Entertainment: Market Size and Forecast, 2020-2029

• Gross Merchandise Value Trend Analysis
• Average Value per Transaction Trend Analysis
• Transaction Volume Trend Analysis

United Kingdom Buy Now Pay Later in Services: Market Size and Forecast, 2020-2029

• Gross Merchandise Value Trend Analysis
• Average Value Per Transaction Trend Analysis
• Transaction Volume Trend Analysis

United Kingdom Buy Now Pay Later in Automotive: Market Size and Forecast, 2020-2029

• Gross Merchandise Value Trend Analysis
• Average Value Per Transaction Trend Analysis
• Transaction Volume Trend Analysis

United Kingdom Buy Now Pay Later in Healthcare and Wellness: Market Size and Forecast, 2020-2029

• Gross Merchandise Value Trend Analysis
• Average Value Per Transaction Trend Analysis
• Transaction Volume Trend Analysis

United Kingdom Buy Now Pay Later in Others: Market Size and Forecast

• Gross Merchandise Value Trend Analysis
• Average Value Per Transaction Trend Analysis
• Transaction Volume Trend Analysis

United Kingdom Buy Now Pay Later Analysis by Consumer Attitude and Behaviour

• Sales Uplift by Product Category
• Share by Age Group
• Share by Income
• Share by Gender
• Adoption Rationale
• Average Monthly Expense segments

Reasons to buy

• Gain a thorough grasp of the dynamics of the industry for Buy Now Pay Later: Determine key trends, market opportunities, and projections for the years 2020-2029. To keep on top of the game, utilise critical KPIs such as volume, average value per transaction, and gross merchandise value to understand market trends.
• Get market dynamics by end-use sectors and assess new prospects across various end-use sectors to quickly stay up to date on the most recent and impending developments in BNPL markets.
• Market-specific strategies include identifying growth areas that are concentrated on particular opportunities and using our unique combination of quantitative forecasting and cutting-edge insights to analyse market-specific risks and significant trends in the BNPL sector.
• Learn about the attitudes and behaviours of consumers: This study uses information from a proprietary survey to identify and interpret key Buy Now Pay Later KPIs, such as spending by age, gender, and income level.
• Create profitable and proactive business plans by utilising market research and a forward-looking study of BNPL market spend and significant prospects in United Kingdom.