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2021

Buy Now Pay Later Market

Buy Now Pay Later Market Size, Share, Competitive Landscape and Trend Analysis Report, by Channel, Application and End User : Global Opportunity Analysis and Industry Forecast, 2021-2030

BI : Financial Services

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Author's: Vaibhav Modi| Pramod Borasi | Onkar Sumant
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Buy Now Pay Later Market Outlook – 2030 

The global buy now pay later market size was valued at $90.69 billion in 2020, and is projected to reach $3.98 trillion by 2030, growing at a CAGR of 45.7% from 2021 to 2030. The buy now pay later is a type of short-term financing that allows individual to purchase daily useful products such as clothes, electronic devices, and home improvement products. It is point of sale (POS) installment loan process that permits consumers to make purchase of the products and manages the reimbursement.

Retailers are offering buy now pay later solution that enable their customers to purchase the daily essential goods by choosing an affordable financing plan and pay in installments instead of the entire cost at one time. Several business owners across the globe have been using buy now pay later  payment platform for financing large equipment, purchasing of raw materials, and paying employee salary, which drives the growth of the buy now pay later market globally. In addition, increase in adoption of buy now pay later payment technology among the youth as it offers several benefits such as buying the high cost smartphone & laptop, paying the tuition fees & stationary products, and paying canteen bill, which accelerate the buy now pay later market growth. 

Buy-Now-Pay-Later-Market--2021-2030

Increase in adoption of online payment method among the people across the developing nation accelerates the growth of the buy now pay later market. The key factors driving the growth of the global buy now pay later market trends include affordable and convenient payment service of buy now pay later platforms and growth in e-commerce industry across the globe. However, high late and returned payment fees hampers the growth of market. On the contrary, increase in demand for delayed payments for online purchases and upsurge in spending on luxury products among the adult population are expected to provide lucrative opportunities for the buy now pay later market. 

The retail goods segment contributed for the largest market share in 2020, owing to increase in the consumers spending on daily essential goods and services at retails stores through buy now pay later platform. However, the healthcare & wellness segment is expected to grow at the highest rate during the forecast period, owing to increase in treatment cost of several dangerous diseases such as chronic heart disease, cancer and cardiovascular diseases. In addition, due to rapid spreading of COVID-19 patient across the globe and rise in need for treatment of this diseases, people across the globe are adopting buy now pay later services which expected to provide lucrative opportunity for buy now pay later platform in the healthcare industry.

Region wise, Asia-Pacific is expected to witness significant growth rate during the forecast period, owing to increase in cost of several home appliances such as smart TVs, music systems, and washing machines. In addition to this, increase in need among youth of developing nations of Asia-Pacific towards buy now pay later platform to purchase high cost electronic devices such as smartphone, mobile tab and laptop is propelling the growth of the buy now pay later market in Asia-Pacific countries during upcoming years.

The report focuses on the growth prospects, restraints, and trends of global buy now pay later market analysis. The study provides Porter’s five forces analysis to understand the impact of various factors such as bargaining power of suppliers, competitive intensity of competitors, threat of new entrants, threat of substitutes, and bargaining power of the buyers in the global buy now pay later industry.

Buy Now Pay Later Market
By Channel
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Online segment will generate the highest revenue throughout the forecast period

Segment Overview

The buy now pay later market is segmented on the basis of channel, end user, application, and region. By channel, the buy now pay later market is divided into online and POS. By application, the market is classified into retail goods, media & entertainment, healthcare & wellness, home improvement and others. By end user, it is categorized into generation X, generation Z/millennial and baby boomers. Region wise, the buy now pay later market is analyzed across North America, Europe, Asia-Pacific, and LAMEA.

Buy Now Pay Later Market
By End User
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Generation Z/Millennials segment will dominate the market during 2021 - 2030

Competitive Analysis 

The key players operating in the global buy now pay later industry include Affirm Holdings Inc., Afterpay, Klarna Bank AB, Laybuy Group Holdings Limited, PayPal Holdings Inc., Payl8r (Social Money Ltd.), Perpay, Quadpay, Sezzle and Splitit. These key players have adopted various strategies, such as product portfolio expansion, mergers & acquisitions, agreements, geographical expansion, and collaborations, to increase their market penetration and strengthen their foothold in the industry.

Buy Now Pay Later Market
By Region
2030
Asia-pacific 
North America
Europe
LAMEA

Asia-Pacific region is projected to be the most lucrative segment

COVID-19 Impact Analysis

The emergence of COVID-19 is expected to have a considerable impact on the growth of the buy now pay later market size. The buy now pay later payment platform has significantly increased during the COVID-19 pandemic due to the rise in purchasing the consumers goods through online channel to prevent spread of corona virus. In addition, major payment solution provider such as Visa and Mastercard have announced partnership with each other to offer affordable installment  financing services, which accelerate the growth of the market during the pandemic outbreak. Moreover, increase in customer spending on the health treatment, rise in cost of the luxury electronic products, and increase in use of online payments services are some of the important factors that boost the growth of the buy now pay later market during the COVID-19 outbreak.

Top Impacting Factors

Increase in Adoption of Online Payment Method Among the People

Increase in adoption of online payment method among the people across the developing nation is accelerating the growth of the buy now pay later payment market. Mobile payment, debit card, and credit card are the leading digital payment technologies that offer people numerous benefits such as reducing transactions cost, streamlining fund transfer service, and increasing the payment security which enhances the growth of the buy now pay later market. Availability of high speed internet connectivity, surge in adoption of smartphone, and rise in awareness about digital payment service are some of the important factors that boost the adoption of online payment technology among the people. 

In addition, rise in use of smartphones and rise in faster connectivity have enabled retailers and customers to receive and make payments via digital platform, which propels the growth of the buy now pay later industry. Moreover, increase in digital payment transaction among the developing nations such as China, Japan, and India due to adoption of buy now pay later technology and online method payment across small & medium sized business enhance the growth of the market. For instance, according to report published by Razorpay in April 2021, Indian digital payment transaction rate in January-February-March is increase by 76% as compared to same time period in 2020. Thus, increase in adoption of online payment method among the people accelerates the growth of the market.

Affordable and Convenient Payment Service of Buy Now Pay Later Platforms

The buy now pay later payment method offers people numerous benefits such as affordable and convenient payment services and instant credit card fund transfer service at the point of sale platform and increases the security of personal information which drives the growth of the buy now pay later market. In addition, buy now pay later platform is supporting a QR-code option that allows individual to make a payment through scan code and to allow the transaction with UPI methods which also propels the growth of the market. Moreover, buy now pay later platform aids consumers in making secure payments without swiping debit card that boost the growth of market across the globe. 

Furthermore, reminding about repayment, improving the credit score of individual, and monitoring the transaction details digitally are some of the important benefits offered by the buy now pay later platform that accelerate the growth of the market across the globe. Retailer and merchants are widely accepting the buy now pay later payment technology platform owing to increase in the revenue of the organization by selling lower price product at an increased rate and offering an instalment repayment method. These advantages offered by the buy now platform to consumers and merchant propel the growth of the market globally.

Key Benefits For Stakeholders     

  • The study provides an in-depth analysis of global buy now pay later market forecast along with the current trends and future estimations to elucidate the imminent investment pockets.
  • Information about key drivers, restraints, and opportunities and their impact analysis on global buy now pay later market share is provided in the report.
  • Porter’s five forces analysis illustrates the potency of the buyers and suppliers operating in the industry.
  • The quantitative analysis of the buy now pay later market size from 2021 to 2030 is provided to determine the market potential.

Buy Now Pay Later Market Key Segments

By Channel

  • Online Channel
  • POS Channel

By Application

  • Retail Goods
  • Media & Entertainment
  • Healthcare & Wellness
  • Automotive
  • Home Improvement
  • Others

By End User

  • Generation X
  • Generation Z/Millennials
  • Baby Boomers

By Region

  • North America
    • U.S.
    • Canada
  • Europe 
    • UK
    • Germany 
    • France 
    • Italy
    • Rest of Europe
  • Asia-Pacific 
    • China
    • India
    • Japan
    • Australia
    • South Korea
    • Rest of Asia-Pacific
  • LAMEA
    • Latin America 
    • Middle East 
    • Africa

Key Market Players

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

Buy Now Pay Later Market Report Highlights

Aspects Details
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By CHANNEL
  • ONLINE
  • POS
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By APPLICATION
  • RETAIL GOODS
  • MEDIA AND ENTERTAINMENT
  • HEALTHCARE AND WELLNESS
  • AUTOMOTIVE
  • HOME IMPROVEMENT
  • OTHERS
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By END USER
  • GENERATION
  • GENERATION Z MILLENNIALS
  • BABY BOOMERS
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By Region
  • North America  (U.S., Canada, Mexico)
  • Europe  (France, Germany, Italy, Spain, UK, Russia, Rest of Europe)
  • Asia-Pacific  (China, Japan, India, South Korea, Australia, Thailand, Malaysia, Indonesia, Rest of Asia-Pacific)
  • LAMEA  (Brazil, South Africa, Saudi Arabia, UAE, Argentina, Rest of LAMEA)
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Key Market Players

KLARNA BANK AB, LAYBUY GROUP HOLDINGS LIMITED, AFTERPAY, AFFIRM HOLDINGS, INC, PAYPAL HOLDINGS, INC, PERPAY, QUADPAY, PAYL8R, SEZZLE, SPLITIT

Analyst Review

The adoption of buy now pay later has increased over time, due to increase in adoption of online payment method such as mobile payment, and debits cards among the people. In addition, various adults across the developed nations have adopted buy now pay later to purchases high cost electronic products which enhances the growth of the market. Furthermore, increase in demand for delayed payments for online purchases and increase in awareness about digital payments among the consumers are expected to lead to rapid growth during the forecast period.

Most of the retailers across the U.S. and Canada have been offering buy now pay later payment services to their customers which is expected to provide lucrative opportunities for the market growth. Moreover, emerging countries in Asia-Pacific and Latin America are projected to offer significant growth opportunities during the forecast period. The global players such as Klarna Bank AB, PayPal Holdings, Inc. and Perpay are focusing toward product development and increasing their geographical presence, owing to growth in competition among local vendors, in terms of features, quality, and price.

In addition, these players are adopting various business strategies such as product launch, product development and partnership to strengthen their foothold in the market. For instance, in June 2021, Finflux, one of the leading alternative payment solution provider in India have launch Buy Now Pay Later, platform for financial services providers. Buy now pay later software offers loan management services for neo banks, digital banks and mobile lending companies, which accelerate the growth of the market.

Furthermore, buy now pay later payment platform helps retailer to offer their customers flexible payment service and allow them to pay their total purchase amount into equal installments. Some of the leading buy now pay later companies have been announcing the partnership with leading e-commerce companies to offer installment payment service which is driving the growth of the market.

For instance, in July 2020, Affirm Holdings, Inc. one of the leading digital lending service providers across the globe partnered with Shopify Inc. to offer Shopify merchant’s buy now pay later financing solution. This partnership helps small-medium sized enterprises to improve their business revenue and receive the full purchase amount from the customers. These factors impact the growth of the buy now pay later market across the globe.

Author Name(s) : Vaibhav Modi| Pramod Borasi | Onkar Sumant
Frequently Asked Questions?

The Buy Now Pay Later Market is estimated to grow at a CAGR of 45.7% from 2021 to 2030.

The Buy Now Pay Later Market is projected to reach $3.98 trillion by 2030.

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Rise in penetration of online payment across the globe and growth in the e-commerce industry in emerging countries etc. boost the Buy Now Pay Later market growth.

The key players profiled in the report include Affirm Holdings Inc., Afterpay, Klarna Bank AB, Perpay, Quadpay, and many more.

On the basis of top growing big corporations, we select top 10 players.

The Buy Now Pay Later Market is segmented on the basis of channel, end user, application, and region.

The key growth strategies of Buy Now Pay Later market players include product portfolio expansion, mergers & acquisitions, agreements, geographical expansion, and collaborations.

Asia-Pacific region would grow at a highest CAGR of 47.3% during the forecast period.

Generation Z/Millennials segment will dominate the market by the end of 2030.

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Buy Now Pay Later Market

Global Opportunity Analysis and Industry Forecast, 2021-2030