The global buy now pay later market size was estimated at USD 19.22 billion in 2024 and is predicted to increase from USD 23.37 billion in 2025 to approximately USD 83.36 billion by 2034, expanding at a CAGR of 15.18% from 2025 to 2034. The buy now pay later market is observed to grow with the implementation of interest-free installment plans on e-commerce platforms.
Data and statistics:
Buy now pay later is a sort of a short-term financing that allows people to buy everyday items like home consumer goods, electronics, and clothes. It is a point of sale (POS) installment loan mechanism that allows customers to buy things and administers the repayment.
The e-commerce enterprises, fintech companies, and even banks have begun to offer buy now pay later services to customers. This payment option is available on Amazon and Flipkart’s websites, as well as banks like ICICI bank and HDFC bank. The buy now pay later loans are also extended by a number of applications based fintech firms, including LazyPay, PayTM, Moneytap, PhonePe, and CASHe, among others. This option is now accessible for a wide range of purchases, from gadgets to fashion, as well as meal delivery, travel booking, grocery shopping, and other expenditures.
The Asia Pacific buy now pay later market size was evaluated at USD 7.00 billion in 2024, and it is predicted to be worth around USD 31.59 billion by 2034, with a CAGR of 15.60% from 2025 to 2034.
Asia Pacific has accounted highest revenue share 36.42% in 2024. Emerging economies in countries including India, China, South Korea, and Japan are observed to contribute to the growth of the market. Meanwhile, the emergence of e-commerce services is observed to integrate even more accessible buy now pay later services to boost the market’s potential in Asia Pacific. Surrounded by a huge tech-savvy generation, China is observed to become the fastest growing cashless nation.
North America hit remarkable revenue share in 2024. The presence of major credit card and fintech companies in the region has supplemented the growth of the market over the past few years. Credit cards remain the most popular and primarily used payment method by most of the Americans. With the increasing consumer base for online shopping, multiple businesses in the region have started offering buy now pay later, EMI or credit card payment services.
The introduction of online payment methods by people in developing countries is speeding up the growth of the buy now pay later market. The economical and convenient payment service of buy now pay later platforms, as well as the global e-commerce industry’s expansion, are the primary reasons driving the growth the global buy now pay later market.
The retailers are now offering buy now pay later options, allowing customers to acquire everyday necessities by selecting a reasonable financing plan and paying in installments rather than paying the entire cost up front. Several business owners around the world have been using the buy now pay later platform to finance huge equipment, purchase raw materials, and pay staff salaries, which is propelling the global buy now pay later market growth.
Furthermore, as a result of the surge in acceptance and adoption of buy now pay later payment technology among the young people, which provides benefits such as purchasing high-cost laptops and smartphones, paying the canteen bill, paying tuition fees, and purchasing the stationary products, the buy now pay later market is expected to grow during the forecast period.
Report Coverage | Details |
Market Size in 2024 | USD 19.22 Billion |
Market Size in 2025 | USD 23.37 Billion |
Market Size by 2034 | USD 83.36 Billion |
Market Growth Rate from 2025 to 2034 | CAGR of 15.18% |
Base Year | 2024 |
Largest Market | Asia Pacific |
Fastest Growing Market | North America |
Base Year | 2024 |
Forecast Period | 2025 to 2034 |
Segments Covered | Component, Vertical, Mode, Business Model, Purchase Ticket Size, Region |
Regions Covered | North America, Europe, Asia-Pacific, Latin America and Middle East & Africa |
Rising Integration of Artificial Intelligence (AI) Technology with Apps to Augment Growth
Strategic Partnerships & Product Launches Intended to Strengthen Market Position
Rising Green Energy Sources Coupled with Growth of Solar Power Industry
Adoption of Buy Now Pay Later Pay Method in Online Shopping
Increasing Adoption of Online Payment Method Among People
Regulatory scrutiny
Regulatory scrutiny in the buy now pay later market acts as a major restraint while imposing potential restrictions and compliance requirements on providers. This scrutiny aims to ensure consumer protection. However, increased regulations may lead to operational challenges, additional practices to maintain the regulatory framework and even can cause limitations on certain business practices.
The platform/solution segment led the buy now pay later market while holding a share of 67% in 2024. Platform providers play a crucial role in facilitating customer acquisition and user engagement for BNPL services. They offer marketing support, promotional tools, and analytics capabilities to help merchants promote BNPL offers, target specific customer segments, and optimize conversion rates. By leveraging data analytics and machine learning algorithms, platform providers enable merchants to identify trends, personalize offers, and maximize the effectiveness of their BNPL marketing campaigns. Effective risk management is essential for the sustainable growth of BNPL services. Platform providers develop sophisticated fraud detection algorithms, credit risk models, and compliance protocols to mitigate risks associated with offering deferred payment options. By monitoring transaction data in real-time and implementing dynamic risk assessment strategies, platform solutions help merchants minimize losses due to fraud, delinquencies, and default rates, while maintaining a positive customer experience.
In 2024, the online segment held the dominating share of 55.65% in the buy now pay later market. The increasing prevalence of mobile commerce aligns with BNPL dominance in the online segment. BNPL services are well-suited for mobile-friendly platforms, catering to the growing number of users making purchases through smartphones and tablets.
In recent years, multiple e-commerce platforms have started forming partnerships with buy now pay later service providers to offer their services directly within the checkout process. This strategic collaboration enhances the visibility and adoption of BNPL options in the online shopping ecosystem.
The rising emphasis on offering zero interest or low-interest EMI and buy now pay later services on e-commerce platforms is observed to promote the segment’s growth in the upcoming period.
Buy Now Pay Later Market Value (US$ Mn), by Mode, 2022 – 2024
Mode | 2022 | 2023 | 2024 |
Online | 2,870.1 | 3,486.0 | 4,237.9 |
Offline | 2308.9 | 2,778.2 | 3,345.9 |
The small ticket item (up to $ 300) segment led the market with the largest share of 42.98% in 2024. Small ticket items, typically priced at $300 or below, are often impulse purchases or everyday essentials. Offering BNPL options for these items makes them more affordable and accessible to consumers, especially those who may not have immediate access to funds or prefer to spread out payments over time. The convenience of BNPL allows consumers to make purchases without upfront payment and budget more effectively.
The business driven segment held the largest share of 70.99% in 2024. Businesses, especially e-commerce retailers and online marketplaces, have widely adopted BNPL solutions as a way to offer flexible payment options to their customers. By integrating BNPL services into their checkout processes, merchants can attract more shoppers, increase conversion rates, and drive higher average order values. The business-driven segment benefits from the widespread adoption of BNPL by merchants across various industries. Businesses play a significant role in promoting BNPL services to their customers through targeted marketing campaigns, promotions, and incentives. By highlighting the benefits of BNPL, such as interest-free installment payments, no credit checks, and instant approval, businesses can encourage more consumers to choose BNPL as their preferred payment method.
The electronics segment dominated the buy now pay later market in 2024 and has garnered 35.94% market share. Electronics, such as smartphones, laptops, and other gadgets, often have higher price points compared to many other consumer goods. BNPL services are attractive to consumers making significant purchases as they can spread the cost over time without the need for immediate payment.
The fashion segment is expected to drive remarkable growth over the forecast period. The customers enjoy a huge number of discounts on products. If the customers are provided with the option to buy now pay later, it has been observed that sales of fashion and garment sectors rise on a large scale.
Buy Now Pay Later Market Value (US$ Mn), by Verticle, 2022 – 2024
Verticle | 2022 | 2023 | 2024 |
Home & Furniture | 3,149.30 | 3,837.03 | 4679.1 |
Electronics | 4,703.60 | 5,697.73 | 6908.2 |
Fashion | 4,007.99 | 4,891.83 | 5975.8 |
Others | 1,178.39 | 1,397.88 | 1658.9 |
By Component
By Purchase Ticket Size
By Business Model
By Mode
By Vertical
By Geography
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