Buy Now Pay Later Global Market Report 2024

Buy now, pay later refers to a type of short-term financing that allows consumers to make purchases and pay for them at a future date, often interest-free. Buy now pay later is used as a type of instalment loan.

The two main types of buy now, pay later channels are online and POS. Online is referred to as a convenience option that consumers employ so they can take advantage of experiences and stay away from inconveniences. The various enterprise sizes are large enterprises; small and medium enterprises. These are used in consumer electronics, fashion and garments, healthcare, leisure and entertainment, retail, and by other end-users.

The buy now, pay later market research report is one of a series of new reports that provides buy now, pay later market statistics, including buy now pay later industry global market size, regional shares, competitors with a buy now, pay later market share, detailed buy now, pay later market segments, market trends and opportunities, and any further data you may need to thrive in the buy now, pay later industry. The buy now, pay later market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The buy now pay later market size has grown exponentially in recent years. It will grow from $156.58 billion in 2023 to $232.23 billion in 2024 at a compound annual growth rate (CAGR) of 48.3%. The growth in the historic period can be attributed to e-commerce growth and online shopping trends, consumer demand for flexible payment options, rise of digital wallets and mobile payments, increase in millennial and gen z consumer base, competition among payment service providers.

The buy now pay later market size is expected to see exponential growth in the next few years. It will grow to$1.01 trillion in 2028 at a compound annual growth rate (CAGR) of 44.6%. The growth in the forecast period can be attributed to expansion of BNPL services to physical retail, growth in cross-border e-commerce, adoption by traditional retailers, emphasis on responsible lending and consumer protection, rise of embedded finance and BNPL as a service. Major trends in the forecast period include integration with point-of-sale systems, personalization of BNPL offers, collaboration between BNPL providers and merchants, integration with loyalty programs, regulatory developments in the BNPL space.

An increase in the adoption of online payment methods is expected to propel the growth of the buy-now-pay-later market going forward. Online payments refer to payments that are made for goods or services that have been purchased online or offline. With the buy now, pay later option, customers can make small-ticket purchases both offline and online and make fast payments. For instance, in April 2021, according to Razorpay, an India-based financial services company, the rate of digital payment transactions in India during January, February, and March 2021 increased by 76% compared to the same period in 2020, whereas Buy Now Pay Later (BNPL) experienced a staggering growth of 569%. Therefore, the increase in the adoption of online payment methods is driving the buy-now-pay-later market growth.

An increase in the growth of E-commerce is expected to propel the growth of the buy now pay later market going forward. E-commerce, short for ‘electronic commerce,’ refers to the buying and selling of goods and services over the internet. It involves various online activities, including online shopping, electronic payments, digital product delivery, and online auctions. Buy Now, Pay Later (BNPL) is a popular payment method in the world of e-commerce. It allows online shoppers to make purchases and defer payment, often splitting the total cost into installment payments. This option enhances the shopping experience by providing flexibility, enabling customers to try products, and make easy, interest-free payments over time. For instance, in February 2023, Forbes, a US-based business magazine published an article that said the total e-commerce sales are expected to grow 10.4% in 2023 and it is expected that by 2026, 24% of retail purchases would take place online. Therefore, an increase in the growth of e-commerce will drive the buy now pay later market.

Technological advancement is a key trend gaining popularity in the buy-now-pay-later market. Major market players are concentrating on offering customers cutting-edge digital services to sustain their position in the buy-now-pay-later market. For instance, in January 2022, Temenos, a Switzerland-based software and apps company, launched Temenos Banking Cloud, the first AI-driven buy-now-pay-later banking service in the market. Through alternative credit products, this offering is expected to give banks and fintechs additional revenue options, assist them in expanding into new areas, and strengthen their connections with customers and business partners. By offering transparency into automated judgments and pairing BNPL customers with suitable loan offers based on their past, Temenos BNPL assists banks in developing lending programs that are driven by patented, explainable AI technology. Therefore, technological advancement is boosting the growth of the buy-now-pay-later market.

Major companies operating in the buy now pay later market are developing innovative solutions to sustain their position in the BNPL market such as the Galileo Buy Now, Pay Later solution. The Galileo Buy Now, Pay Later solution is a unique BNPL solution with issuance of single-use virtual cards and complete loan servicing. For instance, in December 2022, Galileo, a US-based financial technologies company launched the Galileo Buy Now, Pay Later solution which aims to make the customizable solutions available to banks and fintech’s. The mobile application of the bank or fintech shows a real-time bespoke offer. A prefunded, one-time virtual card will be loaded to the customer's mobile wallet and made available in-store or online at most retailers if they accept the loan offer. Financial institutions will be able to easily enter the highly sought-after BNPL market with this solution, giving their clients more purchasing power.

In August 2021, Square, a US-based company engaged in Buy Now, Pay Later (BNPL), mobile payments, financial services, and digital payments, acquired Afterpay for an amount of $29 billion. With this acquisition, the two businesses are expected to come together to form an unmatched payment giant to improve the fairness, accessibility, and inclusivity of the financial system. Afterpay is an Australia-based company engaged in Buy Now, Pay Later (BNPL) services.

Major companies operating in the in the buy now pay later market report are Paytm Postpaid, PayPal Holdings Inc., Affirm Inc., Klarna Inc., Splitit Ltd., Sezzle Inc., Perpay Inc., Openpay, Quadpay Inc., LatitudePay, Laybuy Group Holdings Limited, Payl8r (Social Money Ltd.), ePayLater, Zest Money, Lazypay, Afterpay Ltd., Zip Co Ltd., FuturePay Inc., Bread Finance, PayBright, Zebit Inc., Uplift, ViaBill, Sunbit, Katapult, Credova, Acima Credit, Progressive Leasing, Flexiti Financial, LendCare, PayTomorrow, Payzer, QuickFee, SmartPay Leasing, SplitPay, Zibby

North America was the largest region in the buy now, pay later market n 2023. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the buy now pay later market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa

The countries covered in the buy now pay later market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Italy, Canada, Spain.

The buy now pay later market consists of revenues earned by entities by providing buy now pay later to pay instalments without interest. Values in this market are ‘factory gate’ values, that is, the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

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.