Buy Now Pay Later Market (By Component: Platform/Solutions, Services; By Purchase Ticket Size: Small Ticket Item (Up to US$ 300), Mid Ticket Items (US$ 300 - US$ 1000), Higher Prime Segments (Above US$ 1000); By Business Model: Customer Driven, Business Driven; By Mode: Online, Offline; By Vertical: Home & Furniture, Electronics, Fashion, Others) - Global Industry Analysis, Size, Share, Growth, Trends, Regional Outlook, and Forecast 2022 – 2030


The global buy now pay later market size was estimated at US$ 125.09 billion in 2021 and is expected to hit around US$ 3268.26 billion by 2030, poised to grow at a CAGR of 43.8% during the forecast period 2022 to 2030.

Buy Now Pay Later Market Size 2022 to 2030

Growth Factors

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 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.

Scope of the Buy Now Pay Later Market Report

Report Coverage Details
Market Size US$ 3268.26 Billion by 2030
Growth Rate CAGR of 43.8% from 2022 to 2030
Base Year 2021
Largest Market North America
Fastest Growing Market Asia Pacific
Forecast Period 2022 to 2030
Segments Covered Channel, Enterprise Size, End Use, Region
Companies Mentioned Sezzle, Afterpay, Klarna Bank AB, Laybuy Group Holdings Limited, Quadpay, Splitit, Affirm Holdings Inc., Payl8r (Social Money Ltd.), PayPal Holdings Inc., Perpay

 

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.

However, the buy now pay later market’s expansion is hampered by significant late and returned payment costs. On the other hand, the buy now pay later market is likely to benefit from the surge  in demand for delayed payments for online purchases and an increase in spending on luxury goods among the elderly population.

Mode Insights

The online segment dominated the buy now pay later market and garnered revenue share of over 82.29% in 2022. Due to COVID-19 pandemic, the use of online sales channel is growing at a rapid pace. Thus, the concept of buy now pay later is trendy in online segment.

Buy Now Pay Later Market Share, By Mode, 2022 (%)

The offline segment is fastest growing segment of the buy now pay later market in 2021. To improve customer experience and develop their relationship with customers, many organizations around the world are focusing on giving point of sale (POS) buy now pay later financing solutions.  

Enterprise Size Insights

In 2021, the large enterprises segment accounted largest revenue share 61%. The buy now pay later solution is extensively used by large enterprises since it provides clients with a flexible and inexpensive payment option for high value items. Customers are able to the purchase more things as a result of the simplicity of shopping, which increases sales. 

The small and medium enterprises segment, on the other hand, is predicted to develop at the quickest rate in the future years. Small and medium enterprises all over the world are focusing on buy now pay later solutions to boost sales conversion rates. Furthermore, buy now pay later provides greater clarity by publicly disclosing all of its pricing and fees. Small and medium enterprises concentrate on expanding their customer base and enhancing their market position. 

End Use Insights

The fashion and garment segment dominated the buy now pay later market in 2022 and has garnered 30.74% market share. The fashion and garment industries are flourishing at a steady rate. The customers enjoy huge number of discounts on products. If the customers are provided with the option 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 Share, By End Use, 2022 (%)

The consumer electronics segment is expected to drive remarkable growth over the forecast period. The consumer electronics are high range of products in the market. People prefer to buy consumer electronics with credit cards. But if consumers are given the solution of buy now pay later, then the market will boom. The reason behind is that consumers want to save compounding interest of credit cards. This will also save expense and hidden costs of consumers.  

Region Insights

North America region lead the market with revenues share of 30% in 2020. The North America region is considered as one of the consumer-centric regions. In addition, there are huge number of people who use smartphone applications and internet. This is driving the growth of the global buy now pay later market in the region.

Buy Now Pay Later Market Share, By Region, 2020 (%)

Asia-Pacific, on the other hand, is expected to develop at the fastest rate during the forecast period. The concept of buy now pay later is quite new in the Asia-Pacific region. It has been observed that buy now pay later option is quite popular among millennial population. Furthermore, the rising internet penetration in the region is creating growth prospects for buy now pay later in the region. 

Key Developments

The major market players are highly investing in research and development to improve the technical features of buy now pay later systems. Several strategic initiatives have been attempted by industry players, including supplying varied product ranges, joint ventures, mergers, acquisitions, and collaborations. These tactics help firms and market players to gain a stronger presence in the global buy now pay later market.

The buy now pay later market has a moderate level of fragmentation. Both consumers and businesses benefit from the buy now pay later option. Leading providers like Afterpay, Affirm Inc., and Klarna Inc. have already established themselves in the e-commerce ecosystem by growing their footprints and acquiring new consumers.

Buy now pay later is becoming a more common way for customers to make in store and online purchases. The use of this point of scale and online installment loans as a payment mechanism by a large number of retailers is creating growth prospects for buy now pay later service providers. Over the forecast period, the expanding e-commerce industry is likely to boost the buy now pay later market expansion.

Some of the prominent players in the global buy now pay later market include:

  • Sezzle
  • Afterpay
  • Klarna Bank AB
  • Laybuy Group Holdings Limited
  • Quadpay
  • Splitit
  • Affirm Holdings Inc.
  • Payl8r (Social Money Ltd.)
  • PayPal Holdings Inc.
  • Perpay

Segments Covered in the Report

By Component

  • Platform/Solutions
  • Services

By Purchase Ticket Size

  • Small Ticket Item (Up to US$ 300)
  • Mid Ticket Items (US$ 300 - US$ 1000)
  • Higher Prime Segments (Above US$ 1000)

By Business Model

  • Customer Driven
  • Business Driven

By Mode

  • Online
  • Offline

By Vertical

  • Home & Furniture
  • Electronics
  • Fashion
  • Others

By Geography

  • North America
    • U.S.
    • Canada
  • Europe
    • U.K.
    • Germany
    • France
  • Asia-Pacific
    • China
    • India
    • Japan
    • South Korea
    • Malaysia
    • Philippines
  • Latin America
    • Brazil
    • Rest of Latin America
  • Middle East & Africa (MEA)
    • GCC
    • North Africa
    • South Africa
    • Rest of the Middle East & Africa

Frequently Asked Questions

What is the current size of buy now pay later market?
According to Precedence Research, the global buy now pay later market size was valued at US$ 125.09 billion in 2021 and is anticipated to surpass around US$ 3268.26 billion by 2030.
The global buy now pay later market is growing at a CAGR of 43.8% over the forecast period 2021 to 2030.
The introduction of online payment methods by people in developing countries is speeding up the growth of the buy now pay later market.
The major players operating in the buy now pay later market are Sezzle, Afterpay, Klarna Bank AB, Laybuy Group Holdings Limited, Quadpay, Splitit, Affirm Holdings Inc., Payl8r (Social Money Ltd.), PayPal Holdings Inc., and Perpay.
North America dominated the global buy now pay later market with a market share of more than 31% and will reach the market in near future.
  • Report Code:1559
  • Category:ICT
  • No. of Pages:150+
  • Format:PDF/PPT/Excel
  • Status:Published

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