Global Buy Now Pay Later Market Size is projected to hit US$ 3168.26 billion by 2030 and is expanding growth at a CAGR of 41.2% over the forecast period 2021 to 2030. Factors such as the rising number of e-commerce platforms and increasing adoption of services will increase the footprint of the market during the forecast period. Additionally, rising investments from dominant players will boost the growth of the market. 

Buy now, pay later (BNPL) solutions, which allow consumers to pay in interest-free installments, are continuing to grow in popularity as people seek alternative methods of financing—a trend exacerbated by the coronavirus pandemic. And with the swelling market comes heightened competition amongst financial services companies. 

The BNPL industry has modernized layaway and installment payments to offer consumers flexible payment options for their purchases. Compared to credit cards, intended to be used repeatedly, BNPL solutions are applied to individual transactions—appealing to consumers who want to make less of a financial commitment, even on lower ticket items. 

Companies Profiled in Buy Now Pay Later Market

Affirm Holdings Inc. (California, U.S.)

Paypal (California, U.S.)

Klarna Bank AB (publ) (Stockholm, Sweden)

Laybuy Group Holdings Limited (Auckland, New Zealand)

Perpay Inc., (Pennsylvania, Philadelphia)

Quadpay (New York, U.S.)

Sezzle (Minnesota, U.S.)

Payl8r (Manchester, U.K.)

Splitit (New York, U.S.)

Billie (Berlin, Germany) 

Regional Insights

North America to Reign Dominance due to Rising Investment in R&D Activities

North America is the largest segment for buy now pays later market in terms of region. Due to the multiple benefits, it provides, such as bill discounts and cashbacks, many customers in the North America region have started using online payment through digital wallets, buy now pay later platforms, and credit and debit cards. 

Asia-Pacific region is the fastest growing region in the buy now pays later market. Due to rising cost of numerous home appliances such as washing machines, smart televisions, and music systems, the Asia-Pacific region is predicted to rise at a high rate during the projection period.

Challenges

Lack of consumer awareness in developing and underdeveloped nations

The concept of buy now pay later is not so trendy in developing and underdeveloped nations. The banking, financial services, and insurance (BFSI) agencies are trying to promote the buy now pay later platforms on a large scale but in developed countries. The government of developing and underdeveloped nations needs to run advertising campaigns for the promotion of buy now pay later. Thus, the lack of consumer awareness in developing and underdeveloped nations is a major challenge for the market growth.

COVID-19 Impact

Increased Consumer Volume & Rising Online Platforms to Aid Market Flourish During Pandemic

The COVID-19 pandemic turned the global prospect into an enclosed space with a majority of the general population being forced to work from home to curb the spread of the virus. The market witnessed more than moderate growth during the pandemic era due to increased adoption of the buy now pay later services by a variety of sectors. Shifting consumers’ preference towards online shopping and rising investments from dominant players further pushed the growth of the market.