The medium to long-term growth story of the global BNPL industry remains strong. BNPL payment adoption is expected to grow steadily over the forecast period, recording a CAGR of 11.1% during 2024-2029. The BNPL gross merchandise value in the region will increase from US$417.0 billion in 2023 to reach US$822.2 billion by 2029.
The global buy now pay later industry is poised to grow at an accelerated pace over the medium term. The adoption of the flexible payment solution is growing across regions. While the unbanked and underbanked consumers are driving the adoption in markets like Latin America and Africa, higher inflation and cost of living crisis has resulted in more Europeans using the payment solution.
In the Middle East, too, consumers are using the BNPL schemes for purchases, including essentials and luxury. Providers are also raising funding rounds to scale their business across the region. In Asia Pacific, as well, the market is poised for accelerated growth, with India and Southeast Asian countries projected to lead regional market. Overall, the publisher maintains a positive growth outlook for the sector over the next three to four years.
Firms are entering into strategic partnerships to widen the distribution of their BNPL products
Amid the pent-up demand for credit services among consumers globally, providers are entering into strategic collaborations to reach more consumers, while targeting higher gross merchandise value.- Klarna, for instance, entered into strategic partnership with Walmart Canada, enabling shoppers to make deferred payments at the retailer. The collaboration comes at a time when the acceptance of BNPL is growing at a rapid rate among Canadians. Globally, Klarna has partnered with more than 500,000 retailers and the number is poised to grow further in 2024.
- Zip Co., the Australian BNPL firm, entered into a collaboration with Primer in September 2023. The partnership is part of the firm’s strategy to further increase its penetration in the United States market over the medium term. Under the collaboration, Primer will integrate the BNPL offering of Zip, thereby empowering merchants from sectors such as retail, travel, and fashion among others.
New firms are piloting the BNPL payment method to tap into the growing demand for the solution
The BNPL industry is poised to record steady growth over the next three to four years, amid higher adoption and usage of the payment tool. Consequently, to tap into the growing market, more players are entering the sector with their own BNPL payment service.- Google Pay, for instance, announced strategic partnerships with Zip and Affirm to offer its users with a BNPL payment option. The partnerships, announced in December 2023, will see the rollout of the payment solution across the United States in 2024. The integration with Zip will begin in January 2024 under the pilot project. Affirm, on the other hand, will be made available on Google Pay during Q1 2024. Google Pay, over the medium term, is planning to launch the installment payment tool to its global user base.
Regulatory activities are projected to pick up pace in the global buy now pay later market in 2024
With the market growing at a rapid rate, regulatory activities are also projected to pick up pace in the global market over the medium term. Central Banks, especially in the Middle East, have announced new regulatory requirements for providers in the region.- The UAE Central Bank, in December 2023, announced new regulations to oversee BNPL services. According to the Central Bank, businesses providing BNPL services must operate as agents of licensed banks or financial institutions, with approval from the central bank. The Saudi Central Bank announced new regulations for the fast-growing BNPL industry in December 2023. The rules announced by the Central Bank include provisions regarding licensing requirements and other regulatory measures such as information security standards, internal policies, and measures to combat financial crimes.
- The New York State Governor, in January 2024, also revealed that she plans to propose new regulations for the fast-growing BNPL market. The legislation would require BNPL providers to acquire a license for operating in the state. If it happens, New York will become the first state in the country to have such legislation. However, it is not the first state to regulate the BNPL industry. Afterpay and Klarna withdrew operations from New Mexico due to the regulations that came into effect in January 2023. The regulation, notably, limited the late fee model adopted by BNPL firms.
Global BNPL Payment industry 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 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 title is a bundled offering, combining 22 reports (1218 tables and 1575 charts).Country reports in this bundled offering provide in-depth analysis of Buy Now Pay Later industry. Below is a summary of key market segments offered at country level:
This report provides in-depth, data-centric analysis of Buy Now Pay Later industry in through 55 tables and 71 charts. Below is a summary of key market segments:
BNPL Market Size and Spending Pattern, 2020-2029
- Gross Merchandise Value Trend Analysis
- Average Value Per Transaction Trend Analysis
- Transaction Volume Trend Analysis
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
Buy Now Pay Later Operational KPIs & Statistics, 2020-2029
- Buy Now Pay Later Active Consumer Base
- Buy Now Pay Later Bad Debt
BNPL by Purpose, 2020-2029
- Convenience - Short Term Loans
- Credit - Long Term Loans
BNPL by Business Model, 2020-2029
- Two-Party (BNPL offered by retailers)
- Three-Party BNPL Offering
BNPL by Merchant Ecosystem, 2020-2029
- Open Loop System
- Closed Loop System
BNPL by Distribution Model Analysis, 2020-2029
- Standalone
- Banks & Payment Service Providers
- Marketplaces
Buy Now Pay Later Market Share Analysis by Key Players
BNPL Analysis by Channel, 2020-2029
- Online Channel
- POS Channel
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
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
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
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
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
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
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
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
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
- Get a comprehensive understanding of market dynamics for Buy Now Pay Later: Identify market opportunities, major trends, and forecasting (2020-2029). Understand market trends through crucial KPIs like Gross Merchandise Value, Volume, and Average Value per Transaction, to stay ahead of the curve.
- Insights by end-use sectors: Evaluate new opportunities across multiple end-use sectors, and obtain market dynamics by end-use sectors in order to swiftly catch up with the latest and upcoming developments in BNPL markets.
- Market-specific strategies: Identify growth segments focused on specific opportunities, and analysing market-specific risks and important trends in the BNPL sector with our exclusive blend of quantitative forecasting and innovative insights.
- Gain knowledge of consumer attitudes and actions: This report identifies and interprets important Buy Now Pay Later KPIs, such as spend by age, gender, and income level, using data from a proprietary survey.
- Develop proactive and lucrative business strategies through market intelligence and forward-looking analysis of BNPL market spend and major opportunities in Global.
Table of Contents
Table Information
Report Attribute | Details |
---|---|
No. of Pages | 1914 |
Published | February 2024 |
Forecast Period | 2024 - 2029 |
Estimated Market Value ( USD | $ 484.7 Billion |
Forecasted Market Value ( USD | $ 822.2 Billion |
Compound Annual Growth Rate | 11.1% |
Regions Covered | Global |
No. of Companies Mentioned | 82 |