E-Commerce Buy Now Pay Later Market Report 2026

The e-commerce buy now pay later market size has grown exponentially in recent years. It will grow from $9.56 billion in 2025 to $12.84 billion in 2026 at a compound annual growth rate (CAGR) of 34.2%. The growth in the historic period can be attributed to expansion of e-commerce platforms, rising consumer preference for flexible payments, limited access to traditional credit for young consumers, growth of digital wallets, increasing online retail penetration.

The e-commerce buy now pay later market size is expected to see exponential growth in the next few years. It will grow to $40.88 billion in 2030 at a compound annual growth rate (CAGR) of 33.6%. The growth in the forecast period can be attributed to increasing regulatory oversight of bnpl services, rising demand for transparent repayment models, expansion of bnpl in emerging markets, growing partnerships between retailers and fintech providers, increasing focus on responsible lending frameworks. Major trends in the forecast period include increasing adoption of interest-free installment models, rising integration of bnpl at checkout, growing use of AI-based credit scoring, expansion of bnpl across product categories, enhanced focus on consumer spending flexibility.

The growing popularity of online shopping is expected to drive the expansion of the e-commerce buy now pay later (BNPL) market in the coming years. Online shopping involves purchasing products or services over the Internet through e-commerce websites or platforms. Its rising adoption is largely attributed to the convenience it offers, enabling consumers to shop at any time and from any location, thus saving time and effort. BNPL services are particularly appealing to online shoppers as they provide flexible, interest-free installment options, enhancing both affordability and convenience. This, in turn, increases digital transactions and improves conversion rates for online retailers. For example, in February 2025, the United States Census Bureau, a US-based government agency, reported that e-commerce sales in 2024 reached an estimated $1.19 trillion, reflecting an 8.1% increase over 2023. Therefore, the growing trend of online shopping is a key driver behind the expansion of the e-commerce BNPL market.

Leading companies in the e-commerce BNPL space are increasingly offering innovative solutions such as Installments-as-a-Service to attract more consumers, provide greater payment flexibility, and enhance the shopping experience. This approach helps improve customer retention and accelerates sales. Installments-as-a-Service is a fintech solution that allows merchants and e-commerce platforms to provide installment payment options without the need to build or maintain the supporting infrastructure. For instance, in March 2023, Splitit, a U.S.-based payment solutions company, launched an Installments-as-a-Service integration with SAP Commerce Cloud, a cloud-based e-commerce platform focused on delivering scalable and personalized experiences. This integration allows merchants to seamlessly embed Splitit’s BNPL functionality into their checkout systems. SAP Commerce Cloud joins Splitit’s growing list of platform integrations, which already includes Shopify, Magento, Salesforce Commerce Cloud, Wix, WooCommerce, and BigCommerce. The Installments-as-a-Service offering is tailored to support BNPL services across B2B (Business-to-Business), B2C (Business-to-Consumer), and B2B2C (Business-to-Business-to-Consumer) markets.

In September 2025, Amazon.com Inc., a US-based technology and e-commerce company, acquired Axio for approximately $200 million in cash. Through this acquisition, Amazon aims to strengthen its presence in India’s financial services sector by obtaining direct access to lending capabilities and an NBFC licence, enabling the expansion of credit offerings such as Amazon Pay Later and other digital lending products to millions of customers and merchants. Axio is an India-based financial technology (fintech) company that focuses on providing buy-now-pay-later services, checkout finance, and other credit products via its NBFC platform.

Major companies operating in the e-commerce buy now pay later market are Amazon.com Inc., Allianz Trade, Bread Financial Holdings Inc., Bajaj Finserv Ltd., Paypal Holdings Inc., Klarna Group Plc, Affirm Holdings Inc., Zip Co Limited, PureSoftware Ltd, Sezzle Inc, Vodeno, Addi, AU Group, Zilch Technology Limited, Zebit Inc, LazyPay Private Limited, Hokodo, Payright Limited, FuturePay Holdings Inc, Flex Money Technologies Pvt Ltd.

North America was the largest region in the e-commerce buy now pay later market in 2025. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the e-commerce buy now pay later market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the e-commerce buy now pay later market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The e-commerce buy now pay later market consists of revenues earned by entities by providing services such as installment payment solutions, credit risk assessment, merchant integration, automated payment processing, and fraud detection. 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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