Buy Now Pay Later Services Market 2031 | Growth and Forecast

Coverage: Buy Now Pay Later Services Market covers analysis By Channel (Online, POS); End-use (Retail, Automotive, and others); and Geography

  • Report Code : TIPRE00039137
  • Category : Banking, Financial Services, and Insurance
  • Status : Upcoming
  • No. of Pages : 150
Buy Now

The buy now pay later services market is anticipated to expand at a CAGR of 26.5 % from 2023 to 2031. Consumer preference for flexible payment options, e-commerce growth, and online shopping trends are driving the buy now pay later services market growth.

Buy Now Pay Later Services Market Analysis

The buy now pay later services market has witnessed rapid growth, driven by consumer demand for flexible payment options. Companies such as Afterpay, Klarna, and Affirm have gained prominence, offering users the ability to make immediate purchases and repay in installments. This trend is reshaping online and in-store shopping experiences, especially among younger demographics. However, concerns about potential debt accumulation and regulatory scrutiny are emerging challenges. The buy now pay later services market continues to evolve, with new players entering and established ones expanding globally, emphasizing the need for ongoing monitoring of this dynamic financial services sector.

Buy Now Pay Later Services Market Industry Overview

  • Buy Now, Pay Later (BNPL) services are financial solutions that enable consumers to make purchases and defer payments over a specified period. Typically offered by third-party providers or integrated into retailers' checkout processes, BNPL services allow customers to acquire goods or services instantly and pay for them in installments. This payment option often involves little to no interest if payments are made within the agreed-upon timeframe.
  • Customers appreciate BNPL for its flexibility and accessibility, as it doesn't require traditional credit checks and offers a straightforward application process.
  • However, there can be potential pitfalls, such as late fees or interest charges, if payments are not made on time. BNPL has gained popularity for its convenience and ability to cater to consumers who prefer an alternative to traditional credit cards. Users need to understand the terms and conditions associated with each BNPL service to make informed financial decisions.
  • As with any financial product, responsible and careful usage is crucial to avoid potential debt issues. BNPL allows shoppers to make purchases and defer payment, often breaking it into installment plans without incurring interest. Key players in this market include Afterpay, Klarna, Affirm, and others. This financial model appeals to consumers seeking alternatives to traditional credit cards and loans. Merchants benefit from increased conversion rates and customer loyalty.
  • The BNPL trend gained momentum as e-commerce and online shopping surged. Global adoption of BNPL services continues to expand, with partnerships formed between service providers and major retailers. Traditional financial institutions are also entering this space, recognizing the evolving consumer preferences. The market's future dynamics depend on regulatory developments, risk management practices, and sustained consumer trust in these innovative payment solutions.

 

Strategic Insights

Buy Now Pay Later Services Market Driver

Consumer Preference for Flexible Payment Options and E-commerce Growth and Online Shopping Trends to Drive the Buy Now Pay Later Services Market

  • The growing popularity of Buy Now, Pay Later (BNPL) services is primarily driven by changing consumer preferences. Many individuals, especially millennials and younger demographics, prefer flexible payment structures that deviate from traditional credit card models.
  • BNPL allows customers to spread the cost of purchases over several installments, making high-value items more accessible without the immediate financial burden. This flexibility resonates with those who prioritize budget management and want more control over their spending.
  • Also, the rapid expansion of e-commerce and the shift toward online shopping have significantly fueled the BNPL market. As more consumers engage in digital transactions, the need for seamless and convenient payment methods has intensified. BNPL services integrate effortlessly into online checkout processes, providing a quick and straightforward payment option.
  • The partnership between BNPL providers and e-commerce platforms enhances the total shopping experience, resulting in higher conversion rates for online retailers. The convenience of deferred payments aligns with the digital-first behavior of contemporary consumers, contributing to the sustained growth of BNPL services. Therefore, the now pay later services market share is increasing.

Buy Now Pay Later Services Market Report Segmentation Analysis

Based on the channel, the online segment dominated the market in 2023. Numerous businesses all over the world are striking partnerships and collaborations to focus on adopting various methods for payment, including BNPL, as part of their post-COVID revival plans. For instance, in August 2021, Uplift, Inc. partnered with Tripster, an all-in-one travel booking site. With this partnership, Tripster authorized its customers to plan the entire vacation in a single place and pay with surprise-free monthly installments through Uplift with ease. Hence such increasing partnerships and collaborations to adopt various methods, which is further anticipated to boost the buy now pay later services market growth.

Buy Now Pay Later Services Market Regional Analysis

The scope of the buy now pay later services market report is primarily divided into five regions - North America, Europe, Asia Pacific, Middle East & Africa, and South America. Asia Pacific (APAC) is experiencing rapid growth and is anticipated to hold a significant buy now pay later services market share. The region's significant economic development, growing population, and increasing focus on financial inclusion across diverse economies have contributed to this growth. APAC's emerging markets, characterized by a large unbanked population and a growing entrepreneurial culture, have presented substantial opportunities for the buy now pay later services market.

Buy Now Pay Later Services Market Report Scope

The " buy now pay later services Market Analysis" was carried out based on distribution channel, coverage, and geography. In terms of channel, the market is segmented online and POS. Based on end-use, the buy now pay later services market is segmented into retail, automotive, and others. Based on geography, the market is segmented into North America, Europe, Asia Pacific, the Middle East & Africa, and South America.

Buy Now Pay Later Services Market News and Recent Developments

Companies adopt inorganic and organic strategies such as mergers and acquisitions in the buy now pay later services market. A few recent key market developments are listed below:

  • In January 2022, Within the Temenos Banking Cloud platform, the banking software company Temenos introduced an Al-based BNPL banking service. The platform, which uses alternative credit products, gives opportunities to merchants and consumers alike. It is built on Al technology.

[Source: Temenos., Company Website]

  • In January 2022, Affirm Holdings Inc. introduced two noteworthy product suites: the Affirm SuperApp and the Chrome browser extension. SuperApp is a single, user-friendly solution that offers sophisticated BNPL alternatives for financial services, shopping, and payments.

[Source: Affirm Holdings Inc., Company Website]

Buy Now Pay Later Services Market Report Coverage & Deliverables

The market report “Buy Now Pay Later Services Market Size and Forecast (2021–2031)”, provides a detailed analysis of the market covering below areas-

  • Market size & forecast at global, regional, and country-level for all the key buy now pay later services market segments covered under the scope.
  • Market dynamics such as drivers, restraints, and key opportunities.
  • Key future trends.
  • Detailed PEST & SWOT analysis
  • Global and regional buy now pay later services market analysis covering key market trends, key players, regulations, and recent market developments.
  • Industry landscape and competition analysis covering market concentration, heat map analysis, key players, and recent developments.
  • Detailed company profiles.
REGIONAL FRAMEWORK

Buy Now Pay Later Services Market Report Analysis

Buy Now Pay Later Services Market

  • CAGR (2023 - 2031)
    26.5 %
  • Market Size 2023
    US$ XX million
  • Market Size 2031
    US$ XX Billion

Report Coverage

  • Market size and forecast at global, regional, and country levels for all the key market segments covered under the scope
  • Key future trends
  • Detailed PEST/Porter’s Five Forces and SWOT analysis
  • Industry landscape and competition analysis & recent developments
  • Detailed company profiles
  • Global and regional market analysis covering key market trends, major players, regulations, and recent market developments

Key Players

  • Affirm, Inc.
  • Klarna Inc.
  • Splitit Payments, Ltd.
  • Sezzle Perpay Inc.
  • Zip Co, Ltd
  • PayPal Holdings, Inc.
  • AfterPay Limited
  • Openpay
  • LatitudePay Financial Services
  • HSBC Group

Regional Overview

  • North America
  • Europe
  • Asia-Pacific
  • South and Central America
  • Middle East and Africa

Market Segmentation

By Channel
  • Online
  • POS
By End-use
  • Retail
  • Automotive
  • others
  • Sample PDF showcases the content structure and the nature of the information with qualitative and quantitative analysis.
MARKET PLAYERS

Buy Now Pay Later Services Market Report Scope

Report Attribute Details
Market size in 2023 US$ XX million
Market Size by 2031 US$ XX Billion
Global CAGR (2023 - 2031) 26.5 %
Historical Data 2021-2022
Forecast period 2023-2031
Segments Covered By Channel
  • Online
  • POS
By End-use
  • Retail
  • Automotive
  • others
Regions and Countries Covered North America
  • US
  • Canada
  • Mexico
Europe
  • UK
  • Germany
  • France
  • Russia
  • Italy
  • Rest of Europe
Asia-Pacific
  • China
  • India
  • Japan
  • Australia
  • Rest of Asia-Pacific
South and Central America
  • Brazil
  • Argentina
  • Rest of South and Central America
Middle East and Africa
  • South Africa
  • Saudi Arabia
  • UAE
  • Rest of Middle East and Africa
Market leaders and key company profiles
  • Affirm, Inc.
  • Klarna Inc.
  • Splitit Payments, Ltd.
  • Sezzle Perpay Inc.
  • Zip Co, Ltd
  • PayPal Holdings, Inc.
  • AfterPay Limited
  • Openpay
  • LatitudePay Financial Services
  • HSBC Group
    • Sample PDF showcases the content structure and the nature of the information with qualitative and quantitative analysis.
    Report Coverage
    Report Coverage

    Revenue forecast, Company Analysis, Industry landscape, Growth factors, and Trends

    Segment Covered
    Segment Covered

    This text is related
    to segments covered.

    Regional Scope
    Regional Scope

    North America, Europe, Asia Pacific, Middle East & Africa, South & Central America

    Country Scope
    Country Scope

    This text is related
    to country scope.

    Frequently Asked Questions


    Which are the key players holding the major market share of the buy now pay later services market?

    The key players holding majority shares in the global buy now pay later services market are Affirm, Inc., Klarna Inc., Splitit Payments, Ltd., Sezzle Perpay Inc., Zip co, Ltd, and PayPal Holdings, Inc.

    What are the driving factors impacting the global buy now pay later services market?

    Consumer preference for flexible payment options E-commerce growth, and online shopping trends are the major factors that propel the global buy now pay later services market.

    What is the estimated market size for the global buy now pay later services market?

    The global buy now pay later services market is expected to grow at a CAGR of 26.5 % during the forecast period 2023 - 2031.

    What are the future trends of the Global buy now pay later services market?

    Growing technological advancements in payment methods are anticipated to play a significant role in the global buy now pay later services market in the coming years.

    • Affirm, Inc.
    • Klarna Inc.
    • Splitit Payments, Ltd.
    • Sezzle Perpay Inc.
    •  Zip Co, Ltd
    • PayPal Holdings, Inc.
    • AfterPay Limited
    • Openpay
    • LatitudePay Financial Services
    • HSBC Group
    • Payl8r
    • Zip Co Limited

    The Insight Partners performs research in 4 major stages: Data Collection & Secondary Research, Primary Research, Data Analysis and Data Triangulation & Final Review.

    1. Data Collection and Secondary Research:

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    Several associations trade associates, technical forums, institutes, societies and organizations are accessed to gain technical as well as market related insights through their publications such as research papers, blogs and press releases related to the studies are referred to get cues about the market. Further, white papers, journals, magazines, and other news articles published in the last 3 years are scrutinized and analyzed to understand the current market trends.

    1. Primary Research:

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    1. Data Triangulation and Final Review:

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