Buy Now Pay Later Services Global Market Report 2024

Buy now, pay later (BNPL) services are financial arrangements that allow consumers to make immediate purchases of goods or services and defer payment over a specified period, often in interest-free installments. These services, typically offered by third-party providers, are integrated into online or in-store checkout processes, offering a flexible and convenient alternative to traditional credit methods. BNPL services cater to consumers looking for flexibility in managing their cash flow and expenses, presenting an alternative to conventional credit cards or loans for making purchases.

The main types of BNPL services include online platforms and point-of-sale financing. Online platforms in the BNPL market are digital interfaces such as websites and mobile apps, facilitating the purchase of goods and services with deferred payments. These services cover various product categories such as kitchen appliances, electronics, fashion and personal care items, healthcare products, and more, catering to different end-users such as retail, automotive, and others.

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

The buy now pay later services market size has grown exponentially in recent years. It will grow from $6.51 billion in 2023 to $8.42 billion in 2024 at a compound annual growth rate (CAGR) of 29.3%. During the historic period, growth can be attributed to several factors, increased penetration of smartphones, growing consumer trust in digital payments, rising consumer awareness of financial management, heightened consumer demand for flexible payment options, and increasing consumer trust in digital payment methods.

The buy now pay later services market size is expected to see exponential growth in the next few years. It will grow to $23.73 billion in 2028 at a compound annual growth rate (CAGR) of 29.6%. In the forecast period, growth can be attributed to several factors, the increasing number of internet users, growing consumer preference for flexible payment options, the rising adoption of installment payment solutions by merchants, a surge in e-commerce platforms, and the increasing adoption of online payments. Major trends during this period include technological innovations, digitalization, the integration of BNPL services, omnichannel strategies, and the development of mobile apps.

The buy now pay later (BNPL) services market is expected to experience significant growth due to the expansion of e-commerce. E-commerce, or electronic commerce, involves buying and selling goods and services over the Internet, including online transactions through websites and mobile apps. This expansion is driven by technological advancements, evolving consumer preferences, market dynamics, and increased global connectivity. BNPL services play a crucial role in enhancing the e-commerce experience by improving shopping convenience, increasing conversion rates, raising average order values, attracting new customers, and reducing cart abandonment. They offer financial flexibility to consumers and strategic advantages to merchants in a competitive online market. For instance, in the first quarter of 2024, retail e-commerce sales reached $289.2 billion, marking a 2.1% increase from the previous quarter, according to the United States Department of Commerce.

Leading companies in the BNPL services market are focusing on developing innovative technologies, such as AI-driven BNPL banking services, to strengthen their market presence. AI-driven BNPL banking services utilize artificial intelligence technology to enhance the BNPL experience for both consumers and financial institutions. For example, Temenos AG, a Switzerland-based company specializing in software for banks and financial services, launched the Buy-Now-Pay-Later banking service in January 2022. This service employs advanced AI for real-time credit scoring and risk assessment, ensuring accurate evaluation of consumer creditworthiness and offering personalized installment plans based on AI-driven insights into consumer spending behaviors.

In July 2023, Upgrade Inc., a US-based fintech company, acquired Uplift Inc. for $100 million. This acquisition positions Upgrade to leverage Uplift's technology and expertise to innovate and provide more flexible financing options across various consumer segments, solidifying its growth and market leadership in the evolving financial technology landscape. Uplift Inc. specializes in offering buy now pay later (BNPL) services across different industries.

Major companies operating in the buy now pay later services market are PayPal Holdings Inc., HSBC Holdings plc, Klarna Bank AB, Affirm Holdings Inc., Afterpay Limited, Zip Co Limited, Openpay Pty Ltd, Freecharge Payment Technologies Private Limited, Sezzle Inc., PayClip Inc., Zest Money, One Mobikwik Systems Private Limited, Zilch Technology Limited, Atome Financial, Scalapay S.r.l., Laybuy Holdings Limited, Billie GmbH, ViaBill Inc., Splitit Payments Ltd, Social Money Ltd, Payright Ltd, FuturePay Holdings Inc., OlaMoney Postpaid, LazyPay.

North America was the largest region in the buy now pay later services market in 2023. 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, 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, 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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