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 - Q1 2024 Update

According to the publisher, BNPL payments 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.

As the adoption increases, the trend of more and more consumers falling into a debt trap is also rising in the United Kingdom market. Young consumers, especially, have become vulnerable to missed repayments and late fee charges. Overall, the publisher maintains a positive growth outlook for the BNPL industry in the United Kingdom over the next three to four years.

An increasing number of Brits are turning to buy now pay later schemes in the United Kingdom

The inflationary environment has put a strain on consumer spending power, with a vast majority of the Brits struggling to even pay their bills. As a result, millions of shoppers have turned to payment solutions like buy now pay later schemes to fund their purchases and daily lifestyle.

• According to a report from Citizens Advice, 11% of consumers have used the payment method for grocery shopping. This percentage increases to 35% among frequent BNPL users. In another report, published by the Financial Conduct Authority, nearly 14 million Brits were using the BNPL schemes to make purchases in six months, leading to January 2023.

In 2024, the publisher expects the trend to further continue in the United Kingdom market. The higher uptake of the BNPL schemes is aiding the gross merchandise value and volume growth for providers. However, this is also resulting in higher delinquencies, with many users not able to make timely repayments.

A quarter of the users have faced late repayment fees to due excessive usage of BNPL schemes

The use of BNPL services has increased significantly over the last 12 months in the United Kingdom. While the payment solutions are offering easier access to credit and higher purchasing power, the risk of defaulting on borrowed money has grown substantially in the country. According to a report from the Centre for Financial Capability, nearly a quarter of the BNPL users have faced late repayment fees, during the six-month period leading to December 2023.

The trend is especially higher among young generation consumers. The report, for instance, revealed that 34% of the consumers, in the age group of 18 to 34, are experiencing charges for missed repayments during the period. The number of individuals, aged 55 and above, have also faced late fee charges. The report revealed that 7% to 10% of the users in the age group have faced charges in 2023. The adoption rate, on the other hand, is the highest among consumers aged 25 to 65.

With the adoption poised to grow further in the United Kingdom, it is imperative to boost awareness regarding late repayment charges to drive sustainable growth of the BNPL industry.

Firms are expanding their partnerships to the United Kingdom to launch new products in the market

To tap into the rising adoption of BNPL schemes and drive business growth, firms are forging strategic alliances to widen their distribution and support the growth in gross merchandise value and volume.

• Klarna, for instance, entered into a strategic collaboration with Airbnb, enabling travellers to pay over time for their stays. The payment solution was initially launched in the United States, and now has been made available for the United Kingdom market. in the United Kingdom, Airbnb guests can use the payment solution for reservations priced between 35 to 4,000 pounds. Going forward, Klarna is expected to launch the Airbnb pay-over-time product in other European markets, where the firm has a strong presence already.

The publisher expects more such strategic collaborations in the United Kingdom BNPL market over the medium term. With firms forging alliances to widen the distribution of their product offerings, this trend will subsequently support the growth of the industry, while also driving innovation and competitive landscape in the sector over the next three to four years.

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 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

• 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 United Kingdom.