PUBLISHER: SkyQuest | PRODUCT CODE: 1260016
PUBLISHER: SkyQuest | PRODUCT CODE: 1260016
Global Buy Now Pay Later Market was valued at USD 5.01 billion in 2021, and the market size is estimated to reach USD 25.26 billion by 2028, at a CAGR of 26% over the forecast period (2022-2028).
Shops are increasingly offering "buy now, pay later" options, which allow customers to purchase needs by selecting a fair financing option and paying over time rather than everything at once. The usage of the buy now pay later payment platform by various business owners throughout the world to finance large equipment, buy raw materials, and pay staff salaries is what drives the market's global expansion. Furthermore, more young people are using the purchase now, pay later payment method since it offers several advantages over other payment methods, including the opportunity to pay for pricey things such as computers and cellphones, as well as school supplies and lunch expenses. These factors are driving the expansion of the buy now, pay later sector.
Many players are focusing on developing and deploying a BNPL instalment solution that allows clients to pay over time with no interest. These product introductions are meant to improve the overall purchasing experience for consumers. PayPal Holdings, Inc., for example, announced the availability of Pay in 4, a no-interest buy now, pay later instalment option, in August 2020. This system allows partners and merchants to get money in advance, while customers can spread out payments for goods ranging from $30 to $600 over a six-week period. With this launch, the company expanded the scope of its product offering.
Consumers who want to make a purchase can use BNPL services to get solutions with a predetermined payment plan, a quicker checkout process, no interest, and rapid approval times. Consumers use BNPL services all throughout the world to avoid paying credit card interest, make impulsive purchases, and borrow money without a credit check. In January 2022, a ZestMoney poll found that BNPL had become the preferred option for clients of all ages in 2021, with the youngest consumer being 18 and the oldest being 66. The survey also indicated that men in tier 1 and tier 2 cities spent a lot on lifestyle and fashion, but women in tier 1 and tier 2 cities invested in edtech upgrades for electronics and upskilling.
Top-down and bottom-up approaches were used to estimate and validate the size of global Buy Now Pay Later Market and to estimate the size of various other dependent submarkets. The research methodology used to estimate the market size includes the following details: The key players in the market were identified through secondary research, and their market shares in the respective regions were determined through primary and secondary research. This entire procedure includes the study of the annual and financial reports of the top market players and extensive interviews for key insights from industry leaders such as CEOs, VPs, directors, and marketing executives. All percentage shares split, and breakdowns were determined by using secondary sources and verified through Primary sources. All possible parameters that affect the markets covered in this research study have been accounted for, viewed in extensive detail, verified through primary research, and analysed to get the final quantitative and qualitative data.
Segments covered in this report:
Global Buy Now Pay Later market is segmented based on enterprise size, end-use channel, and region. Based on the enterprise size, the buy now pay later market is segmented into large and SME's. Based on the end use, it is segmented as consumer electronics, fashion & garments, retail, media and entertainment, and others. Based on channel, it is segmented as online and POS. Based on region it is categorized into North America, Europe, Asia-Pacific, and MEA.
Driver
People's use of online payment options is increasing.
According to the United Nations Conference on Trade and Development (UNCTAD), more than 80% of customers globally utilise digital payments to conduct online purchasing. Mobile payments, debit cards, and credit cards are the three most common digital payment options. These techniques have many advantages over traditional payment methods, including lower transaction costs, more efficient fund transfers, and improved payment security, all of which contribute to the expansion of the purchase now pay later industry. High-speed internet access, a surge in smartphone adoption, and growing public awareness of digital payment services are some of the primary factors pushing the development of online payment technology. Furthermore, the rise in smartphone usage and faster connectivity have enabled merchants and customers to accept and make payments through digital platforms, which has supported the growth of the purchase now pay later sector.
Service Payment That Is Both Cheap and Easy
Individuals benefit from the buy now pay later payment method in a variety of ways, including more affordable and convenient payment services, faster credit card fund transfers at the point-of-sale platform, and increased personal information security, all of which contribute to the growth of the buy now pay later market. Furthermore, the purchase now pay later platform provides a QR-code option, which allows consumers to pay with a scannable code and complete transactions via UPI, both of which contribute to the market's growth. Furthermore, the buy now pay later platform enables clients to make secure payments without utilising a debit card, promoting global market expansion. Additional benefits supplied by the buy now pay later platform that encourage global market expansion include notifying clients about payback, improving their credit scores, and tracking transaction data online.
Restraints
Lack of service awareness and the abundance of payment choices
Other payment methods, such as post-dated cheques, credit and debit card financing, and many others, are available. Customers and retailers in a variety of growing markets, including India, Brazil, Asia, and others, are unaware of the BNPL service. Before providing BNPL services to customers, credit scores must be examined. With BNPL, the service provides users with straightforward monthly installment payment arrangements. The availability of multiple payment options, as well as a lack of understanding among consumers, retailers, and merchants, hamper the overall expansion of the purchase now pay later industry.
Market Trends
Machine Learning and Artificial Intelligence (AI) technology enable service providers to construct models in real time and improve decision-making capabilities. A number of market participants are developing specialised AI-based models to accelerate their consumer market penetration. Temenos, for example, debuted an AI-based BNPL banking solution within the Temenos Banking Cloud platform in January 2022. The platform is built on artificial intelligence (A.I.) technology and provides chances for both customers and merchants through alternative credit options. The growing use of artificial intelligence (AI) technology to boost real-time consumer base will drive the worldwide buy now pay later market trend.