Buy Now Pay Later Market to Increase Gradually at a CAGR of 20.7% During the Forecast Period; Adoption of Buy Now Pay Later Services in Various Sectors to Push Market Growth

The global buy now pay later market size is estimated to display strong growth by reaching USD 167.58 billion by 2032. Fortune Business Insights™ in its report titled “Buy Now Pay Later Market Size, Share & COVID-19 Impact Analysis, By Channel (Point of Sale (POS) and Online), By Enterprise Type (SMEs and Large Enterprises), By Category (BFSI, Consumer Electronics, Fashion & Garment, Healthcare, Retail, Media and Entertainment, and Others), and Regional Forecast, 2024-2032” observes that the market size in 2023 stood at USD 30.38 billion and is expected to reach USD 37.19 billion in 2024. The market is expected to witness a strong CAGR of 20.7% during 2024-2032. Adoption of buy now pay later services in various sectors, such as retail, banking, and healthcare insurance sectors, is setting the market pathway for the service. Leading market players have been developing advanced BNPL applications and services. The increasing adoption of artificial intelligence (AI) technology to improve the real-time consumer base will propel the global market trend.

Affirm Holdings Inc. Launched Two Significant Product Suites - Chrome Browsers Extension and Affirm Superapp

New product launch is one of the key strategies implemented by the market players. In January 2022, Affirm Holdings Inc. launched two significant product suites, Chrome browsers extension and Affirm SuperApp. SuperApp. They provide advanced BNPL options for payments, shopping, and financial services with one easy-to-use solution. Affirm Holdings Inc. is a buy now pay later service provider.  

Pandemic Shifted the Behavior of Consumers toward Online E-Commerce Platforms, Supporting Market Growth

The COVID-19 impacted the demand for the services as the demand staggered. The pandemic shifted the behavior of consumers toward online e-commerce platforms, which made several organizations switch to online platforms. Numerous leading players have completed investment during the pandemic by adopting various business strategies, product launches, and partnerships. In August 2021, Amazon.com, Inc. collaborated with Affirm, Inc. to allow customers to use the service via the Amazon application.

Rising Integration of New Technologies to Positively Influence the Adoption of the Service

Rising integration of new technologies is predicted to drive the buy now pay later market growth. There is implementation of AI and ML technology in the development of real-time models for decision making process and performance. In January 2022, Temenos launched an AI-based BNPL banking service in the Temenos Banking Cloud platform. The new platform has AI technology that offers both consumers and merchant’s opportunities through alternative credit products.

However, lack of awareness regarding the service and high availability of multiple payment options are expected to hinder market growth.

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https://www.fortunebusinessinsights.com/buy-now-pay-later-market-106408

Market Players have been Investing in AI, Cloud, and Machine Learning for Various Services

The market players have been investing in AI, cloud, and machine learning to progress the capabilities of their services. The major players have been adopting various strategies such as mergers, acquisitions, collaborations, and partnerships to expand their market presence. In January 2022, Block, Inc. Technology Company acquired Afterpay Limited to provide Block, Inc. with enhanced financial services and products. The acquisition has helped the company expand access for more consumers to drive revenue for all sellers and merchants.

Notable Industry Development

• October 2021 – Klarna, payments, retail bank, and shopping service provider, partnered with Billie buy now, pay later BNPL payment service provider. With this partnership, both companies aim to expand their BNPL services to online stores across the globe.

List of Key Companies Profiled in the Report:

• Affirm Holdings Inc. (U.S.)
• Paypal (U.S.)
• Klarna Bank AB (publ) (Sweden)
• Laybuy Group Holdings Limited (New Zealand)
• Perpay Inc., (Philadelphia)
• Quadpay (U.S.)
• Sezzle (U.S.)
• Payl8r (U.K.)
• Splitit (U.S.)
• Billie (Germany)

Further Report Findings

• North America dominated the buy now pay later market share, with a market size of USD 14.40 billion in 2022. This dominance is attributed to the repetition of consumers to use this service for purchasing products and presence and investments by key players such as Affirm Holdings, Inc., PayPal, Quadpay, Sezzle, and others.

• Asia Pacific is set to be the fastest-growing region due to online payments channels creating a massive demand for the service. Moreover, increasing adoption of e-commerce online applications has created market opportunity for the key players.
• Europe is also expected to show significant growth in the market due to substantial regulatory support regarding the adoption of vehicle telematics.
• Based on category, the market is divided into BFSI, consumer electronics, fashion & garment, healthcare, retail, media and entertainment, and others. The consumer electronics segment dominated in 2022 due to online sales of consumer electronics such as smart T.V., smartphones, gaming consoles, and others. BFSI is expected to have the highest CAGR owing to a surge in the adoption of services by the fintech and banking sectors.

Table of Segmentation