Buy Now Pay Later Market - Global Market Share, Trends, Analysis and Forecast, 2023-2032
The global buy now pay later market was estimated to be US$ 6.44 Billion in 2022 and is expected grow at a CAGR of 27.3% between 2023 to 2032.
"Buy now pay later" refers to a type of financing option that allows customers to purchase goods or services today and pay for them at a later date, typically in instalments. This type of financing can be offered by retailers, lenders, or credit card companies and is often marketed as a convenient way for customers to make purchases without having to pay for them all at once.
The terms and conditions, including interest rates and fees, of these financing options can vary, so it is important for customers to carefully consider the costs and obligations before using this type of financing.
Market Drivers
Rising number of flexible payment options is accelerating market growth
The global buy now pay later market is being driven by several factors, including the growth of e-commerce and online shopping, rising demand for flexible payment options and alternative lending, increase in consumer debt and spending, and expansion of market reach through partnerships and technology innovations.
Retailers are looking for ways to make the purchasing process more convenient and accessible for their customers, and buy now pay later financing provides a flexible payment option that helps customers manage their finances and make their purchases more manageable.
With the rise of consumer debt levels, many people are looking for alternative financing options that allow them to manage their finances more effectively, and buy now pay later financing provides a flexible payment option that enables customers to pay for their purchases in installments, without having to pay upfront.
Buy now pay later providers are partnering with merchants and financial institutions to expand their market reach and offer their services to a wider audience, and the development of innovative technologies, such as mobile applications, is making it easier for customers to access and use buy now pay later financing.
The growing popularity of subscription-based models, such as monthly deliveries of household essentials, is also driving demand for buy now pay later financing, as customers look for flexible payment options to make their purchases more manageable and avoid taking on more debt. These factors are contributing to the growth and popularity of buy now pay later financing, and are expected to continue driving demand in the coming years.
Channel segmentation of Global Buy Now Pay Later Market
E-commerce and online shopping are driving the growth of the online market
On the basis of channel, the market is segmented into online, and POS. Among these, the online segment is currently the largest segment in the buy now pay later market. This is due to the rapid growth of e-commerce and online shopping, which has created a huge demand for buy now pay later financing options.
Customers prefer the convenience of using buy now pay later financing options from the comfort of their own homes, and the growth of e-commerce has made it easier for buy now pay later providers to offer their services online.
The fastest growing segment in the buy now pay later market is the Point of Sale (POS) segment. This is because retailers are looking for ways to make the purchasing process more convenient and accessible for their customers, and buy now pay later financing provides a flexible payment option that helps customers manage their finances and make their purchases more manageable.
Additionally, the use of buy now pay later financing at the point of sale helps to increase customer loyalty, as it provides a convenient payment option for customers who may not have access to traditional credit options. This trend is expected to continue as retailers look for ways to improve the customer experience and increase sales.
Enterprise Size segmentation of Global Buy Now Pay Later Market
Large enterprises segment holds the largest market share
Based on enterprise size, the market is segmented into Large Enterprises, and Small & Medium Enterprises. Among these segments, the large enterprises segment is the largest, owing to the large market share held by established players and the higher investment capacity of these companies.
Large enterprises have a significant advantage in terms of resources, which allows them to invest heavily in research and development and expand their market reach through partnerships and technology innovations.
On the other hand, the small and medium enterprises segment is growing faster, due to the increasing number of new entrants in the market and the growing popularity of buy now pay later financing among SMEs.
SMEs are looking for alternative financing options to help manage their finances more effectively, and buy now pay later financing provides a flexible payment option that enables them to pay for their purchases in installments, without having to pay upfront.
Additionally, the growth of e-commerce and online shopping is also contributing to the growth of the SMEs segment, as more and more SMEs are looking for ways to make the purchasing process more convenient and accessible for their customers.
End-user Industry segmentation of Global Buy Now Pay Later Market
Growing demand for subscription-based models is driving the growth of the retail end-user industry
On the basis of end-user industry, the market is segmented into Consumer Electronics, Fashion & Garment, Healthcare, Leisure & Entertainment, Retail, and other industries. Among these, the retail end-user industry segment is the largest owing to the growth of e-commerce and online shopping.
The rise of e-commerce has created a huge demand for buy now pay later financing options, as retailers are looking for ways to make the purchasing process more convenient and accessible for their customers.
Buy now pay later financing provides a flexible payment option that helps customers manage their finances and make their purchases more manageable, and the growth of e-commerce is driving demand for this type of financing in the retail end-user industry.
Additionally, the growing demand for subscription-based models and the rise of consumer debt levels are also contributing to the growth of the retail end-user industry segment.
Regional trends of the Global Buy Now Pay Later Market
Growing adoption of buy now pay later financing in the Asia-Pacific region
Geographically, the global buy now pay later market is segmented into North America, Europe, Asia-Pacific, Middle East and Africa, and South America.
Among these regions, the North America is the largest market, owing to the presence of several leading buy now pay later providers and the high adoption of buy now pay later financing in the region.
Additionally, the growth of e-commerce and online shopping, the increase in consumer debt and spending, and the expansion of market reach through partnerships and technology innovations are also contributing to the growth of the buy now pay later market in North America.
While the Asia-Pacific region is the fastest growing in the global buy now pay later market, due to the increasing adoption of buy now pay later financing in countries such as China, India, and Australia.
The growth of e-commerce and online shopping, the increase in consumer debt and spending, and the expansion of market reach through partnerships and technology innovations are also contributing to the growth of the buy now pay later market in the Asia-Pacific region.
Additionally, the region has a large and rapidly growing population, which is driving demand for buy now pay later financing options, as more people look for flexible payment options to manage their finances and make their purchases more manageable.
Key players and market strategies:
One of the key growth strategies adopted by companies operating in the global buy now pay later market is expanding their market reach through partnerships and collaborations.
These partnerships and collaborations can take the form of partnerships with merchants, financial institutions, and other companies in related industries. By partnering with these companies, buy now pay later providers are able to expand their market reach and offer their financing options to a wider audience.
Additionally, these partnerships can also help companies leverage their partner's customer base, brand recognition, and technology to drive demand for their services.
Another key growth strategy adopted by companies in the buy now pay later market is the development of innovative technologies and platforms. By developing innovative technologies, such as mobile applications and online platforms, companies are able to make it easier for customers to access and use buy now pay later financing options.
Additionally, the development of new technologies is allowing companies to offer more advanced and comprehensive financing options, which can provide customers with a more flexible payment option and better overall financing experience. These technology innovations are contributing to the growth and popularity of buy now pay later financing, and are expected to continue driving demand in the coming years.
Some of the biggest companies operating in the global buy now pay later market are Affirm, Inc., Afterpay, Klarna Inc., LatitudePay, Openpay, PayPal Holdings, Inc., Perpay Inc., Quadpay, Inc., Sezzle, Splitit, and many more.
Global Buy Now Pay Later Market Segmentation:
By Channel
- Online
- POS
By Enterprise Size
- Large Enterprises
- Small & Medium Enterprises
By End-Users
- Consumer Electronics
- Fashion & Garment
- Healthcare
- Leisure & Entertainment
- Retail
- Others
By Region
- North America
- United States
- Canada
- Rest of North America
- Europe
- Germany
- United Kingdom
- Italy
- France
- Spain
- Rest of Europe
- Asia Pacific
- Japan
- India
- China
- Australia
- South Korea
- Rest of Asia Pacific
- Middle East & Africa
- UAE
- Saudi Arabia
- South Africa
- Rest of the Middle East & Africa
- South America
- Brazil
- Rest of South America
- Introduction
- Research Objectives
- Report Assumptions
- Research Methodology
- Abbreviations
- Preface
- Market Definition
- Report Scope and Market Segmentation
- Research Highlights
- Market Synopsis: Global Buy Now Pay Later Market
- Global Buy Now Pay Later Market Qualitative Analysis
- Trends
- Market trends
- Technology Trends
- PESTLE Analysis (For 3 prominent countries)
- Market Influencers
- Driving Forces
- Hindering Forces
- Opportunities
- COVID-19 impact
- Porter’s Five Forces Analysis
- Value Chain Analysis
- Trends
- Global Buy Now Pay Later Market Analysis and Forecast, by Channel
- Overview and definitions
- Key segment analysis
- Global Buy Now Pay Later Market Estimates (US$ Mn), Channel, 2019 – 2032
- Online
- POS
- Global Buy Now Pay Later Market Analysis and Forecast, by Enterprise Size
- Overview and definitions
- Key segment analysis
- Global Buy Now Pay Later Market Estimates (US$ Mn), by Enterprise Size, 2019 – 2032
- Large Enterprises
- Small & Medium Enterprises
- Global Buy Now Pay Later Market Analysis and Forecast, by End Use
- Overview and definitions
- Key segment analysis
- Global Buy Now Pay Later Market Estimates (US$ Mn), by End Use, 2019 – 2032
- Consumer Electronics
- Fashion & Garment
- Healthcare
- Leisure & Entertainment
- Retail
- Others
- Global Buy Now Pay Later Market Analysis and Forecast, by Region
- Overview and definitions
- Key segment analysis
- Global Buy Now Pay Later Market Estimates (US$ Mn), by Region, 2019 – 2032
- North America
- Europe
- Asia Pacific
- Middle East & Africa
- South America
- North America Buy Now Pay Later Market Analysis and Forecast
- Overview and definitions
- Key segment analysis
- North America Buy Now Pay Later Market Estimates (US$ Mn), Channel, 2019 – 2032
- Online
- POS
- North America Buy Now Pay Later Market Estimates (US$ Mn), by Enterprise Size, 2019 – 2032
- Large Enterprises
- Small & Medium Enterprises
- North America Buy Now Pay Later Market Estimates (US$ Mn), by End Use, 2019 – 2032
- Consumer Electronics
- Fashion & Garment
- Healthcare
- Leisure & Entertainment
- Retail
- Others
- North America Buy Now Pay Later Market Estimates (US$ Mn), by Country, 2019 – 2032
- United States
- Canada
- Rest of North America
- Europe Buy Now Pay Later Market Analysis and Forecast
- Overview and definitions
- Key segment analysis
- Europe Buy Now Pay Later Market Estimates (US$ Mn), Channel, 2019 – 2032
- Online
- POS
- Europe Buy Now Pay Later Market Estimates (US$ Mn), by Enterprise Size, 2019 – 2032
- Large Enterprises
- Small & Medium Enterprises
- Europe Buy Now Pay Later Market Estimates (US$ Mn), by End Use, 2019 – 2032
- Consumer Electronics
- Fashion & Garment
- Healthcare
- Leisure & Entertainment
- Retail
- Others
- Europe Buy Now Pay Later Market Estimates (US$ Mn), by Country, 2019 – 2032
- Germany
- United Kingdom
- Italy
- France
- Spain
- Rest of Europe
- Asia Pacific Buy Now Pay Later Market Analysis and Forecast
- Overview and definitions
- Key segment analysis
- Asia Pacific Buy Now Pay Later Market Estimates (US$ Mn), Channel, 2019 – 2032
- Online
- POS
- Asia Pacific Buy Now Pay Later Market Estimates (US$ Mn), by Enterprise Size, 2019 – 2032
- Large Enterprises
- Small & Medium Enterprises
- Asia Pacific Buy Now Pay Later Market Estimates (US$ Mn), by End Use, 2019 – 2032
- Consumer Electronics
- Fashion & Garment
- Healthcare
- Leisure & Entertainment
- Retail
- Others
- Asia Pacific Buy Now Pay Later Market Estimates (US$ Mn), by Country, 2019 – 2032
- China
- Japan
- South Korea
- India
- Australia
- Rest of Asia Pacific
- Middle East & Africa Buy Now Pay Later Market Analysis and Forecast
- Overview and definitions
- Key segment analysis
- Middle East & Africa Buy Now Pay Later Market Estimates (US$ Mn), Channel, 2019 – 2032
- Online
- POS
- Middle East & Africa Buy Now Pay Later Market Estimates (US$ Mn), by Enterprise Size, 2019 – 2032
- Large Enterprises
- Small & Medium Enterprises
- Middle East & Africa Buy Now Pay Later Market Estimates (US$ Mn), by End Use, 2019 – 2032
- Consumer Electronics
- Fashion & Garment
- Healthcare
- Leisure & Entertainment
- Retail
- Others
- Middle East & Africa Buy Now Pay Later Market Estimates (US$ Mn), by Country, 2019 – 2032
- UAE
- Saudi Arabia
- South Africa
- Rest of MEA
- South America Buy Now Pay Later Market Analysis and Forecast
- Overview and definitions
- Key segment analysis
- South America Buy Now Pay Later Market Estimates (US$ Mn), Channel, 2019 – 2032
- Online
- POS
- South America Buy Now Pay Later Market Estimates (US$ Mn), by Enterprise Size, 2019 – 2032
- Large Enterprises
- Small & Medium Enterprises
- South America Buy Now Pay Later Market Estimates (US$ Mn), by End Use, 2019 – 2032
- Consumer Electronics
- Fashion & Garment
- Healthcare
- Leisure & Entertainment
- Retail
- Others
- South America Buy Now Pay Later Market Estimates (US$ Mn), by Country, 2019 – 2032
- Brazil
- Argentina
- Rest of South America
- Competition Analysis – Global Buy Now Pay Later Market
- Market Composition
- Market Share Analysis (%), by Supplier (2022)
- Company Profiles
- Affirm, Inc.
- Business overview
- Geographic presence
- Product portfolio
- Financial facts
- Relevant news and strategic view
- Afterpay
- Klarna Inc.
- LatitudePay
- Openpay
- PayPal Holdings, Inc.
- Perpay Inc.
- Quadpay, Inc.
- Sezzle
- Splitit
- Affirm, Inc.
- Conclusion & Recommendations
Frequently asked questions about this report
How big is the buy now pay later market?
The buy now pay later market was estimated to be US$ 6.44 Billion in 2022.
What is the CAGR of the buy now pay later market?
The global buy now pay later market is estimated to expand at a CAGR of 27.3% from 2023 to 2032.
What are the factors driving the global buy now pay later market?
Key factors that are driving the global buy now pay later market growth include the growth of e-commerce and online shopping, rising demand for flexible payment options and alternative lending, increase in consumer debt and spending, and expansion of market reach through partnerships and technology innovations.
Which channel is the largest currently in the buy now pay later market?
The online segment is currently the largest segment in the buy now pay later market. This is due to the rapid growth of e-commerce and online shopping, which has created a huge demand for buy now pay later financing options.
Which end-user is the largest in the buy now pay later market?
The retail end-user industry segment is the largest owing to the growth of e-commerce and online shopping.
Which region is the fastest-growing in the buy now pay later market?
The Asia-Pacific region is the fastest growing in the global buy now pay later market, due to the increasing adoption of buy now pay later financing in countries such as China, India, and Australia.
Which enterprise size is the largest in the buy now pay later market?
The large enterprises segment is the largest, owing to the large market share held by established players and the higher investment capacity of these companies.
Who are the key players in the buy now pay later market?
Some key players operating in the buy now pay later market include Affirm, Inc., Afterpay, Klarna Inc., LatitudePay, Openpay, PayPal Holdings, Inc., Perpay Inc., Quadpay, Inc., Sezzle, Splitit, and many more.