The e-commerce buy now pay later market (BNPL) is a type of payment option that allows customers to purchase goods and services online and postponed the payment for a later time. In basic terms, it enables customers to purchase goods and pay for them in installments over time as opposed to all at once. The idea of BNPL has been around for a while, but in recent years, especially in the e-commerce industry, it has grown in popularity. Many online merchants now provide BNPL options that let customers buy products without having to pay for them right away. In addition, customers who choose the BNPL option at the time of checkout are then given a selection of payment options to choose from. Moreover, these plans often provide clients with additional choices in how they pay for their purchases by offering various repayment periods, interest rates, and other terms and conditions. Furthermore, the ability of BNPL to improve sales for online shops is one of its main advantages. Moreover, they may draw more customers and encourage them to make bigger purchases by giving customers the opportunity to postpone payment. Customers who do not have the money on hand to pay for a purchase in full may find it to be a practical option.
Increase in the number of smartphone users the rise of the purchase now pay later sector in e-commerce has been significantly impacted by the rise in number of smartphone users. There is an increase in number of people utilizing their smartphones to do their online shopping, with the development of mobile technology, which has increased the demand for mobile-friendly payment choices such as purchase now pay later. Smartphones have become a vital component of daily life and provide a convenient and simple way to shop online whenever and wherever. There has been a huge change in customer behavior due to this, with many individuals now choosing to shop online from mobile devices rather than desktop computers. In addition, low cost, and practical payment options. This is thus a major growth factor for the market. Moreover, growth in number of e-commerce websites are major driving factors for the BNPL market. However, BNPL options not available for several goods on e-commerce websites this is because the availability of these options may depend on several factors, such as the value of the goods, the policies of the merchant, and the specific buy now pay later provider being used. Online merchants may occasionally decide not to provide BNPL alternatives for specific products because they may be expensive or more challenging to resale if customers do not make their payments as agreed. This is often the case with products that are regarded as luxury goods, such as fine jewelry, high-end technology, and designer clothing. Furthermore, the increase in bad debts is another major factor hampering the growth of the market. On the contrary, consumer demand for flexible payment options in the e-commerce BNPL business has significantly increased. Customers have started to expect more flexible payment options that enable them to make purchases without having to pay for them all at once as they become used to the flexibility and convenience of online shopping.
The e-commerce buy now pay later market is segmented on the basis of product type, repayment model, end user, and region. On the basis of product type, the market is segmented into fashion accessories, mobiles and laptops, electronic appliances, and others. On the basis of repayment model, it is bifurcated into manual repayment schedules and automatic repayment. On the basis of end user, it is segmented into Gen Z (21-25), millennials (26-40), Gen X (41-55), and baby boomers (56-75). On the basis of region, it is analyzed across North America, Europe, Asia-Pacific, and LAMEA.
The report analyzes the profiles of key players operating in the e-commerce buy now pay later market such as Affirm Holdings Inc., Bread Financial, Klarna Bank, Laybuy Holdings Limited., Paypal, Payright Limited., QuickFee Group LLC., Sezzle Inc., Splitit Payments Ltd, and Zip Co Limited. These players have adopted various strategies to increase their market penetration and strengthen their position in e-commerce buy now pay later market.
Increase in the number of smartphone users the rise of the purchase now pay later sector in e-commerce has been significantly impacted by the rise in number of smartphone users. There is an increase in number of people utilizing their smartphones to do their online shopping, with the development of mobile technology, which has increased the demand for mobile-friendly payment choices such as purchase now pay later. Smartphones have become a vital component of daily life and provide a convenient and simple way to shop online whenever and wherever. There has been a huge change in customer behavior due to this, with many individuals now choosing to shop online from mobile devices rather than desktop computers. In addition, low cost, and practical payment options. This is thus a major growth factor for the market. Moreover, growth in number of e-commerce websites are major driving factors for the BNPL market. However, BNPL options not available for several goods on e-commerce websites this is because the availability of these options may depend on several factors, such as the value of the goods, the policies of the merchant, and the specific buy now pay later provider being used. Online merchants may occasionally decide not to provide BNPL alternatives for specific products because they may be expensive or more challenging to resale if customers do not make their payments as agreed. This is often the case with products that are regarded as luxury goods, such as fine jewelry, high-end technology, and designer clothing. Furthermore, the increase in bad debts is another major factor hampering the growth of the market. On the contrary, consumer demand for flexible payment options in the e-commerce BNPL business has significantly increased. Customers have started to expect more flexible payment options that enable them to make purchases without having to pay for them all at once as they become used to the flexibility and convenience of online shopping.
The e-commerce buy now pay later market is segmented on the basis of product type, repayment model, end user, and region. On the basis of product type, the market is segmented into fashion accessories, mobiles and laptops, electronic appliances, and others. On the basis of repayment model, it is bifurcated into manual repayment schedules and automatic repayment. On the basis of end user, it is segmented into Gen Z (21-25), millennials (26-40), Gen X (41-55), and baby boomers (56-75). On the basis of region, it is analyzed across North America, Europe, Asia-Pacific, and LAMEA.
The report analyzes the profiles of key players operating in the e-commerce buy now pay later market such as Affirm Holdings Inc., Bread Financial, Klarna Bank, Laybuy Holdings Limited., Paypal, Payright Limited., QuickFee Group LLC., Sezzle Inc., Splitit Payments Ltd, and Zip Co Limited. These players have adopted various strategies to increase their market penetration and strengthen their position in e-commerce buy now pay later market.
Key benefits for stakeholders
- The study provides an in-depth analysis of the global e-commerce buy now pay later market along with the current & future trends to illustrate the imminent investment pockets.
- Information about key drivers, restrains, & opportunities and their impact analysis on the global e-commerce buy now pay later market size are provided in the report.
- Porter’s five forces analysis illustrates the potency of buyers and suppliers operating in the industry.
- The quantitative analysis of the global e-commerce buy now pay later market from 2023 to 2032 is provided to determine the market potential.
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Key Market Segments
By Product Type
- Fashion Accessories
- Mobiles and Laptops
- Electronics Appliances
- Others
By Repayment Model
- Manual Repayment Schedules
- Automatic Repayment
By End User
- Gen Z (21-25)
- Millennials (26-40)
- Gen X (41-55)
- Baby Boomers (56-75)
By Region
- North America
- U.S.
- Canada
- Europe
- UK
- Germany
- France
- Italy
- Spain
- Rest of Europe
- Asia-Pacific
- China
- Japan
- India
- Australia
- South Korea
- Rest of Asia-Pacific
- LAMEA
- Latin America
- Middle East
- Africa
Key Market Players
- Affirm Holdings Inc.
- Bread Financial
- Klarna Bank
- Laybuy Holdings Limited
- PayPal
- Payright Limited
- QuickFee Group LLC
- Sezzle Inc.
- Splitit Payments Ltd
- Zip co limited
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Table of Contents
CHAPTER 1: INTRODUCTION
CHAPTER 2: EXECUTIVE SUMMARY
CHAPTER 3: MARKET OVERVIEW
CHAPTER 4: E-COMMERCE BUY NOW PAY LATER MARKET, BY PRODUCT TYPE
CHAPTER 5: E-COMMERCE BUY NOW PAY LATER MARKET, BY REPAYMENT MODEL
CHAPTER 6: E-COMMERCE BUY NOW PAY LATER MARKET, BY END USER
CHAPTER 7: E-COMMERCE BUY NOW PAY LATER MARKET, BY REGION
CHAPTER 8: COMPETITIVE LANDSCAPE
CHAPTER 9: COMPANY PROFILES
List of Tables
List of Figures
Executive Summary
According to this report, the e-commerce buy now pay later market was valued at $4.2 billion in 2022, and is estimated to reach $57.8 billion by 2032, growing at a CAGR of 30.4% from 2023 to 2032.The E-commerce Buy Now Pay Later Market is likely to experience a significant growth rate of 30.4% from 2022-2032 owing to increasing market demand for automatic repayment model
E-commerce buy now pay later (BNPL) is a payment method that allows customers to buy things online and pay for them in installments over time rather than paying the entire price at once. This payment option has grown in popularity in e-commerce since it gives customers greater freedom and affordability in their purchase decisions. Moreover, BNPL is popular among customers because it provides flexibility and convenience. Customers make purchases that they might not be able to afford upfront, and they can spread the cost of those purchases over time.
The increasing number of e-commerce companies offering buy now pay later (BNPL) alternatives is a recent trend. BNPL is growing increasingly popular among consumers since it allows them to purchase products without having to pay the whole cost ahead, making it an appealing choice for individuals who do not have the necessary finances accessible immediately. Thus, this factor drives the of the E-commerce buy now pay later market size growth. Furthermore, the growing use of smartphones has a huge impact on E-commerce buy now pay later (BNPL) services. As more consumers shop online using their smartphones, BNPL providers are working to make their services more accessible and user-friendly on mobile devices. Furthermore, one of the primary benefits of using smartphones for BNPL is the convenience it provides, customers quickly make purchases and manage their payment plans while on the road, without the need for a desktop or laptop computer. However, increase in bad debts of E-commerce BNPL is a major factor hampering the growth of the market as bad debts are created when customers fail to make payments on their BNPL purchases, which can result in financial losses for BNPL providers and their retail partners. There are several factors contributing to the increase in bad debts in the BNPL space, such as the ease and convenience of BNPL have led to an increase in spending, with customers potentially overcommitting themselves and struggling to make payments. Furthermore, BNPL options are not available for several goods on E-commerce websites which is a major factor hampering the market growth.
The market also offers growth opportunities to the key players in the market. There has been a significant increase in the awareness about the importance of E-commerce buy now pay later among the customers. Furthermore, the E-Commerce buy now pay later market (BNPL) solutions on e-commerce websites assist address the growing consumer need for flexible payment choices. By allowing customers to spread out the cost of their purchases over time, BNPL services make buying products more affordable and accessible to a wider range of consumers. The opportunity to pay for items in installments be especially appealing for larger or more expensive purchases for many customers, as it assists them manage their cash flow and avoid having to pay for the entire transaction upfront, which provides lucrative opportunity to boost the growth of market during the upcoming years across the globe.
The E-commerce buy now pay later market is segmented on the basis of product type, repayment model, end user, and region. Based on product type, the market is segmented into fashion accessories, mobiles and laptops, electronic appliances, and others. By repayment model it is segmented into manual repayment schedules and automatic repayment. On the basis of end user, it is segmented into Gen Z (21-25), millennials (26-40), Gen X (41-55), and baby boomers (56-75). Region wise, it is analyzed across North America (the U. S., and Canada), Europe (UK, Germany, France, Italy, Spain, and rest of Europe), Asia-Pacific (China, India, Japan, Australia, South Korea and rest of Asia-Pacific), and LAMEA (Latin America, Middle East, and Africa). The key players profiled in the study are Affirm Holdings Inc., Bread Financial, Klarna Bank, Laybuy Holdings Limited., Paypal, Payright Limited., QuickFee Group LLC., Sezzle Inc., Splitit Payments Ltd, and Zip Co Limited. The players in the market have been actively engaged in the adoption various strategies such as business expansion, product launch, and partnership to remain competitive and gain advantage over the competitors in the market. For instance, In June 2022, PayPal had launch PayPal pay monthly, a buy now, pay later (BNPL) product from WebBank. It allows the customers can stretch payments over a long period of time, permitting them greater flexibility and even more choices to pay for the products they want and need, according to the announcement. In addition, customers can make purchases ranging from $199 to $10,000, spreading the cost over six to two years, with the first payment due one month after purchase. With the help of this product launched the companies delivered more personal approach to E-commerce buy now pay later that build customer relationship which provided a strategic advantage to the company and E-commerce buy now pay later market size.
Key Market Insights
By product type, the mobiles and laptops segment was the highest revenue contributor to the market, and is estimated to reach $21.24 billion by 2032, with a CAGR of 28.6 %. However, the fashion accessories segment is estimated to be the fastest growing segment with the CAGR of 33.7% during the forecast period.By repayment model, the automatic repayment segment dominated the global market, and is estimated to reach $41.84 billion by 2032, with a CAGR of 31.2%.
By end user, the millennials (26-40) segment was the highest revenue contributor to the market, and is estimated to reach $26.29 billion by 2032, with a CAGR of 29.4%. However, the Gen Z (21-25) segment is estimated to be the fastest growing segment with the CAGR of 33.3% during the forecast period.
Based on region, North America was the highest revenue contributor, accounting for $1.56 billion in 2022, and is estimated to reach $15.90 billion by 2032, with a CAGR of 26.4%.
Companies Mentioned
- Affirm Holdings Inc.
- Bread Financial
- Klarna Bank
- Laybuy Holdings Limited
- PayPal
- Payright Limited
- QuickFee Group LLC
- Sezzle Inc.
- Splitit Payments Ltd
- Zip co limited
Methodology
The analyst offers exhaustive research and analysis based on a wide variety of factual inputs, which largely include interviews with industry participants, reliable statistics, and regional intelligence. The in-house industry experts play an instrumental role in designing analytic tools and models, tailored to the requirements of a particular industry segment. The primary research efforts include reaching out participants through mail, tele-conversations, referrals, professional networks, and face-to-face interactions.
They are also in professional corporate relations with various companies that allow them greater flexibility for reaching out to industry participants and commentators for interviews and discussions.
They also refer to a broad array of industry sources for their secondary research, which typically include; however, not limited to:
- Company SEC filings, annual reports, company websites, broker & financial reports, and investor presentations for competitive scenario and shape of the industry
- Scientific and technical writings for product information and related preemptions
- Regional government and statistical databases for macro analysis
- Authentic news articles and other related releases for market evaluation
- Internal and external proprietary databases, key market indicators, and relevant press releases for market estimates and forecast
Furthermore, the accuracy of the data will be analyzed and validated by conducting additional primaries with various industry experts and KOLs. They also provide robust post-sales support to clients.
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