Buy Now, Pay Later (BNPL) Market Forecasts to 2032 - Global Analysis By Channel Type (Online BNPL and Point-of-Sale (POS) BNPL), Enterprise Size, Business Model, Payment Method, End User and By Geography

According to Stratistics MRC, the Global Buy Now, Pay Later (BNPL) Market is accounted for $12.25 billion in 2025 and is expected to reach $72.85 billion by 2032 growing at a CAGR of 29.0% during the forecast period. Buy Now, Pay Later (BNPL) is a deferred payment method enabling customers to buy items instantly and repay the amount later through equal, often interest-free installments. Commonly available at online and in-store checkouts, BNPL services offer financial flexibility and a smoother shopping experience. Retailers use these solutions to attract customers, boost sales, and improve overall satisfaction through convenient payment options.

According to the United Nations Conference on Trade and Development (UNCTAD) in 2020, more than 80% of global consumers have shopped online and used digital payment.

Market Dynamics:

Driver:

Consumer preference for flexible payments

Shoppers increasingly favor installment-based models that offer financial flexibility without traditional credit constraints. BNPL platforms are gaining traction due to their transparent terms, ease of use, and minimal upfront costs. Younger demographics, especially millennials and Gen Z, are driving adoption through mobile-first experiences and embedded checkout solutions. Merchants are integrating BNPL to boost conversion rates and average order values. As digital commerce expands, flexible financing is becoming a core expectation rather than a niche offering.

Restraint:

Rising funding costs and credit losses

As borrowing costs rise, maintaining profitability becomes more challenging, especially for firms reliant on short-term debt. Additionally, increased consumer delinquencies are straining risk models and eroding margins. The lack of standardized credit checks in some BNPL offerings has led to higher default rates, prompting investor caution. Regulatory scrutiny around responsible lending is further complicating underwriting practices. These financial headwinds are forcing providers to reassess pricing strategies and risk mitigation frameworks.

Opportunity:

Leveraging AI for risk assessment

Artificial intelligence is transforming how BNPL firms evaluate creditworthiness and manage fraud. Advanced algorithms can analyze behavioral data, transaction histories, and alternative credit indicators to generate real-time risk profiles. This enables more accurate lending decisions and dynamic limit adjustments tailored to individual users. AI-driven tools also enhance fraud detection by identifying anomalies across payment patterns and device usage. As data ecosystems mature, predictive analytics are helping providers reduce losses and improve customer segmentation. The integration of AI is becoming a strategic differentiator in scaling BNPL operations efficiently.

Threat:

Increased regulatory scrutiny

Governments and financial regulators are intensifying oversight of BNPL services amid concerns over consumer debt and transparency. New guidelines are emerging to enforce clearer disclosures, affordability checks, and standardized reporting. Regulatory bodies are pushing for BNPL products to align more closely with traditional credit frameworks. This shift may require significant operational changes, including licensing, compliance infrastructure, and data governance. Smaller players could struggle to meet evolving requirements, leading to market consolidation. As scrutiny grows, reputational risks and legal liabilities are becoming more prominent.

Covid-19 Impact:

The pandemic accelerated digital payment adoption, propelling BNPL into mainstream consumer finance. Lockdowns and economic uncertainty drove demand for deferred payment options, especially among cash-strapped households. E-commerce surged, and BNPL became a preferred method for managing short-term liquidity. Providers responded by expanding merchant partnerships and enhancing mobile integration. However, the crisis also exposed vulnerabilities in credit risk models, with rising defaults and operational strain. Post-pandemic strategies now emphasize resilience, automation, and diversified funding sources to navigate future disruptions.

The online BNPL segment is expected to be the largest during the forecast period

The online BNPL segment is expected to account for the largest market share during the forecast period, due to its seamless integration with digital retail platforms and widespread consumer adoption. E-commerce merchants are embedding BNPL options directly into checkout flows, enhancing convenience and boosting conversion rates. The scalability of online BNPL is supported by API-driven architectures and cloud-based infrastructure. Consumers prefer digital onboarding and instant approvals, which align with the frictionless nature of online shopping. As mobile commerce grows, online BNPL continues to dominate transaction volumes.

The healthcare segment is expected to have the highest CAGR during the forecast period

Over the forecast period, the healthcare segment is predicted to witness the highest growth rate, due to increasing demand for flexible financing of medical expenses. Patients are turning to BNPL to manage out-of-pocket costs for elective procedures, dental care, and diagnostics. Healthcare providers are integrating BNPL into billing systems to improve affordability and patient retention. The rise of telehealth and digital clinics is expanding BNPL's reach in non-traditional care settings. Regulatory support for financial inclusion in healthcare is also driving adoption.

Region with largest share:

During the forecast period, the Asia Pacific region is expected to hold the largest market share, due to rapid digitalization and expanding e-commerce ecosystems. Countries like China, India, and Southeast Asian nations are witnessing a surge in mobile-first BNPL adoption. Local fintechs are innovating with culturally tailored payment models and low-cost lending structures. Government initiatives promoting financial inclusion and digital payments are accelerating market penetration. Strategic alliances between global BNPL firms and regional platforms are enhancing distribution and consumer trust.

Region with highest CAGR:

Over the forecast period, the North America region is anticipated to exhibit the highest CAGR, owing to its advanced fintech infrastructure and evolving consumer finance landscape. The U.S. and Canada are leading in BNPL innovation, with strong venture capital backing and regulatory engagement. Providers are leveraging AI, open banking, and embedded finance to refine offerings and expand use cases. Retailers are adopting omnichannel BNPL solutions to unify in-store and online experiences. Regulatory clarity is improving, enabling responsible growth and product diversification.

Key players in the market

Some of the key players in Buy Now, Pay Later (BNPL) Market include Klarna, Kueski, Afterpay, Zilch, Affirm, Shop Pay, PayPal, Humm, Zip, Openpay, Sezzle, Laybuy, Splitit, Tamara, and Tabby.

Key Developments:

In October 2025, Klarna announced its support for Google's Agent Payments Protocol (AP2), an open standard designed to enable secure, agent-led payments across digital environments. The collaboration builds on Klarna's long-standing relationship with Google, which includes integrations with Google Pay, Chrome's autofill feature, Google Store, Google Play, and Google Cloud.

In August 2024, Klarna has acquired Laybuy's assets in New Zealand, the birthplace of the payments provider, and plans to relaunch the service in the coming weeks. Laybuy, which ceased operations in June, is set to make a reenergized return in New Zealand under Klarna. With Klarna's extensive expertise and global presence, New Zealand consumers and merchants will benefit from a revitalized platform with superior payment flexibility and user experience.

Channel Types Covered:

• Online BNPL
• Point-of-Sale (POS) BNPL

Enterprise Sizes Covered:

• Large Enterprises
• Small and Medium Enterprises (SMEs)

Business Models Covered:

• Business-to-Consumer (B2C)
• Business-to-Business (B2B)
• Consumer-to-Business (C2B)

Payment Methods Covered:

• Credit Card-based
• Debit Card-based
• Digital Wallet-based
• Bank Transfer

End Users Covered:

• Consumer Electronics
• Fashion & Apparel
• Healthcare
• Travel & Tourism
• Home Improvement
• Automotive
• Other End Users

Regions Covered:

• North America
  • US
  • Canada
  • Mexico
• Europe
  • Germany
  • UK
  • Italy
  • France
  • Spain
  • Rest of Europe
• Asia Pacific
  • Japan
  • China
  • India
  • Australia
  • New Zealand
  • South Korea
  • Rest of Asia Pacific
• South America
  • Argentina
  • Brazil
  • Chile
  • Rest of South America
• Middle East & Africa
  • Saudi Arabia
  • UAE
  • Qatar
  • South Africa
  • Rest of Middle East & Africa

What our report offers:

• Market share assessments for the regional and country-level segments
• Strategic recommendations for the new entrants
• Covers Market data for the years 2024, 2025, 2026, 2028, and 2032
• Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
• Strategic recommendations in key business segments based on the market estimations
• Competitive landscaping mapping the key common trends
• Company profiling with detailed strategies, financials, and recent developments
• Supply chain trends mapping the latest technological advancements

Free Customization Offerings:

All the customers of this report will be entitled to receive one of the following free customization options:

• Company Profiling
  • Comprehensive profiling of additional market players (up to 3)
  • SWOT Analysis of key players (up to 3)
• Regional Segmentation
  • Market estimations, Forecasts and CAGR of any prominent country as per the client's interest (Note: Depends on feasibility check)
• Competitive Benchmarking
  • Benchmarking of key players based on product portfolio, geographical presence, and strategic alliances