Buy Now Pay Later Market

Global Industry Analysis and Forecast 2023-2030

Pages : 120

Base Year : 2022

Released Year : February 2024

Format :Pdf Ppt Xls

Report ID:KR411

Author : Priyanka V.

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Base Year


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Forecast Year


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Historical Years


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Market Value (2022)

USD 24.12 Billion

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Forecasted Value (2030)

USD 115.27 Billion

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CAGR (2023 - 2030)


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Fastest Growing Region (2023 - 2030)


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Largest Region

North America

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By Channel

Online, POS.

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By Enterprise Size

Large Enterprises, Small & Medium Enterprises.

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By End User

Healthcare, Retail, Leisure & Entertainment, Automotive, Others.

Market Perspective

The global Buy Now Pay Later Market was valued at USD 24.12 Billion in 2022 and is projected to reach USD 115.27 Billion by 2030, growing at a CAGR of 21.76% from 2023 to 2030.

In recent years, the global market for buy now pay later has experienced substantial growth, driven by the rising trend of online shopping and the demand for flexible payment choices. This industry is marked by the presence of multiple providers who offer consumers a diverse range of solutions, including installment plans and interest-free financing. Consequently, the buy now pay later market has become fiercely competitive, attracting both established financial institutions and emerging fintech startups, all striving to capture a greater market share.

In addition, the COVID-19 pandemic has accelerated the adoption of buy now pay later services, as consumers seek financial flexibility and the ability to make purchases without an immediate financial burden. This has led to a surge in the number of merchants partnering with buy now pay later providers, further fueling the growth of the buy now pay later market.

Moreover, the widespread adoption and popularity of buy now pay later as a favored payment option can be attributed to the convenience and user-friendly nature of these services, along with the growing inclination towards online shopping. As the buy now pay later market progresses, there is an anticipation of increased competition due to the entry of new players who will introduce enhanced solutions to cater to the evolving preferences and requirements of consumers.

Analyst’s Review on Buy Now Pay Later Market

The global buy now pay later market has experienced significant growth in recent years, driven by changing consumer preferences and increased adoption of digital payment solutions. In addition, the buy now pay later market is expected to continue its upward trajectory in the coming years, fueled by the convenience and flexibility it offers to consumers. The rising popularity of e-commerce platforms and the increasing number of partnerships between retailers and buy now pay later providers are also contributing to its growth. Moreover, advancements in artificial intelligence enable personalized product recommendations and chatbot assistance, further improving the overall shopping experience. As more consumers become comfortable with online shopping and trust in the security of their transactions, the e-commerce market is positioned to further assert its dominance across various industries.

Market Definition

Buy now pay later refers to a financial service that allows consumers to make purchases and pay for them in installments over time. This payment option has gained significant popularity in recent years, especially among younger generations who prefer flexible payment options and want to avoid high interest rates associated with traditional credit cards.

In addition, the buy now pay later model typically involves partnering with retailers or e-commerce platforms, allowing consumers to split their purchases into smaller, more manageable payments. This model has revolutionized the way people shop, as it provides greater financial flexibility and accessibility. By breaking down the cost of purchases into installments, consumers can budget more effectively and make larger purchases without feeling financially strained.

Furthermore, the buy now pay later service typically includes interest-free options, making it an attractive alternative to credit cards that often come with high interest rates. Overall, the buy now pay later model has become a game-changer in the retail industry, catering to the evolving needs and preferences of consumers.

Market Dynamics

The buy now pay later market is experiencing substantial growth due to a growing consumer demand for flexible payment options. In the era of e-commerce and online shopping, consumers seek convenient and affordable ways to make purchases. Buy now pay later options allow consumers to spread out payments over time, making it more manageable for them to afford costly items and budget effectively. As a result, more retailers and online platforms have started offering buy now pay later services, thereby contributing to the expansion of this buy now pay later market.

Furthermore, many individuals are becoming more cautious when it comes to incurring substantial debts or relying on conventional credit cards. The buy now pay later options provide users with the opportunity to make purchases without incurring interest or additional charges, rendering it an attractive option. Additionally, the convenience and quick approval process offered by these services are contributing to their rapid expansion, as consumers can make immediate purchases and enjoy the flexibility of deferred payments. The combination of these factors is fueling the growth of the buy now pay later market.

However, increasing regulatory scrutiny and the evolving regulatory landscape pose significant challenges for BNPL providers, which are expected to hamper the growth of the market. With stricter regulations and increased oversight, these providers need to ensure compliance and meet the changing requirements, which may increase their operational costs and limit their ability to innovate. This, in turn, could hinder their growth and expansion in the buy now pay later market, as they need to adapt to the new regulatory environment while still delivering attractive and competitive offerings to consumers.

Segmentation Analysis

The global buy now pay later market is segmented based on channel, enterprise size, end-user, and geography.

Based on channel, the market is bifurcated into online and POS. The online segment dominated the market in 2022. The surge in online shopping can be attributed to the growth of e-commerce. Consumers nowadays are more comfortable making purchases online, and the convenience of buy now pay later options has further fueled this trend. Furthermore, the online segment offers a wider range of products and services compared to brick-and-mortar stores, attracting a larger customer base, which is driving the growth of the segment.

Based on enterprise size, the buy now pay later market is bifurcated into large enterprises, and small & medium enterprises. The large enterprises segment held the largest market share in 2022. These companies possess the financial resources and infrastructure necessary to invest in and scale their buy now pay later services. They can afford to develop user-friendly platforms and offer competitive interest rates and repayment terms. In addition, the established brand reputation and wide customer base of larger enterprises give them a significant advantage in attracting and retaining customers. All these factors are contributing to its dominance of large enterprises in the global buy now pay later market.

Geographical Analysis

Based on region, the global buy now pay later market is classified into North America, Europe, Asia Pacific, MEA, and Latin America.

North America is expected to dominate the market through the review period due to its robust and well-established e-commerce industry, with major players such as Amazon and Walmart leading the way. These companies have successfully integrated buy now pay later options into their platforms,  facilitating convenient purchases without requiring upfront payment. Furthermore, North America exhibits a high level of consumer trust and confidence in online transactions, thereby driving the adoption of buy now pay later services.

Asia-Pacifc is expected to be the fastest growing region, driven by its large and rapidly expanding middle-class population, accompanied by a rise in disposable income. This has led to a greater demand for convenient and flexible payment options, such as buy now pay later services. In addition, the rise of e-commerce in Asia-Pacific has been exponential, with more consumers embracing online shopping. This has created massive growth potential for buy now pay later platforms to thrive, as they offer a seamless and hassle-free checkout experience for online shoppers.

Competitive Landscape

The global buy now pay later market study will provide valuable insights with an emphasis on the fragmented nature of the industry. Prominent players are focusing on several key business strategies, such as partnerships, mergers & acquisitions, product innovations, and joint ventures to expand their product portfolio and increase their market shares across different regions. Expansion & investments are the major strategic initiatives adopted by companies in this sector. Industry players are investing heavily in R&D activities, building new manufacturing facilities, and supply chain optimization.

 The major players in the market are:

Key Developments

  • February 2023 (Product Launch): CRED launched an application called CRED flash to enter into the buy now pay later service, offering customized spend limits to its members, which can be repaid within 30 days.
  • May 2022 (Partnership): Affirm Inc. formed a partnership with Fiserv's enterprise merchant clients, which commenced later in the year. This collaboration established Affirm as the first buy now pay later provider to be seamlessly integrated into Fiserv's Carat℠ operating system.

The global Buy Now Pay Later Market is segmented as:

By Channel

  • Online
  • POS

By Enterprise Size

  • Large Enterprises
  • Small & Medium Enterprises

By End User

  • Healthcare
  • Retail
  • Leisure & Entertainment
  • Automotive
  • Others

By Region

  • North America
    • U.S.
    • Canada
    • Mexico
  • Europe
    • France
    • UK
    • Spain
    • Germany
    • Italy
    • Russia
    • Rest of Europe
  • Asia Pacific
    • China
    • Japan
    • India
    • South Korea
    • Rest of Asia Pacific
  • Middle East & Africa
    • GCC
    • North Africa
    • South Africa
    • Rest of Middle East & Africa
  • Latin America
    • Brazil
    • Argentina
    • Rest of Latin America
  • Check Icon Additional Company Profiles
  • Check Icon Additional Countries
  • Check Icon Cross Segment Analysis
  • Check Icon Regional Market Dynamics
  • Check Icon Country-Level Trend Analysis
  • Check Icon Competitive Landscape Customization
  • Check Icon Extended Forecast Years
  • Check Icon Historical Data Up to 5 Years
Frequently Asked Questions (FAQ's)
The global buy now pay later is projected to reach USD 115.27 billion by 2030, growing at a CAGR of 21.76% from 2023 to 2030.
The global buy now pay later market was valued at USD 24.12 billion in 2022
The major driving factor for the market growth are quick and seamless transactions, along with increase in E-commerce sector drives the growth of the market.
Top manufacturers of buy now pay later market are Affirm, Inc., Klarna Inc., Amazon, Sezzle, Perpay Inc., Zip Co Limited, PayPal Holdings, Inc., AfterPay Limited, Openpay, and LatitudePay, among others.
Europe is the fastest growing region in the forecasted period (2023-2030).
By channel, online segment will hold the maximum share in the buy now pay later market in forecast period.
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