PUBLISHER: The Business Research Company | PRODUCT CODE: 1750980
PUBLISHER: The Business Research Company | PRODUCT CODE: 1750980
E-commerce buy now, pay later (BNPL) is a payment model that allows consumers to purchase goods or services online and delay payment through interest-free installments or scheduled payments. This option is typically provided by third-party financial providers during checkout, enabling shoppers to divide their payments into weekly or monthly installments without the need for a traditional credit card.
Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report's Recommendations and Conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.
The main product categories for BNPL in e-commerce include fashion accessories, electronic appliances, home goods, and other product types. Fashion accessories are items designed to complement and enhance an outfit, such as jewelry, handbags, belts, scarves, hats, watches, and eyewear. Payment methods for BNPL include credit cards, debit cards, digital wallets, and bank transfers, with various repayment models available, such as manual and automatic repayment schedules. Transactions are generally classified into small, medium, and large ticket sizes, serving a range of end-users, including Generation Z (ages 21-25), millennials (ages 26-40), Generation X (ages 41-55), and baby boomers (ages 56-75).
The e-commerce buy now pay later market research report is one of a series of new reports from The Business Research Company that provides e-commerce buy now pay later market statistics, including e-commerce buy now pay later industry global market size, regional shares, competitors with an e-commerce buy now pay later market share, detailed e-commerce buy now pay later market segments, market trends and opportunities, and any further data you may need to thrive in the e-commerce buy now pay later industry. The e-commerce buy now pay later market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.
The e-commerce buy now pay later market size has grown exponentially in recent years. It will grow from$7.16 billion in 2024 to $9.61 billion in 2025 at a compound annual growth rate (CAGR) of 34.3%. The growth during the historic period can be attributed to several factors, including a rise in the number of smartphone users, an increase in the number of e-commerce companies, a growth in the number of businesses, higher transaction volumes, and a growing demand for flexible payment options.
The e-commerce buy now pay later market size is expected to see exponential growth in the next few years. It will grow to$31.11 billion in 2029 at a compound annual growth rate (CAGR) of 34.1%. The growth during the forecast period can be credited to rising merchant adoption, growing popularity of online shopping, the widespread use of digital wallets, increasing demand for credit alternatives, and the expansion of cross-border e-commerce transactions. Key trends expected in the forecast period include the use of biometric authentication for improved security, the implementation of advanced fraud detection systems, integration with e-commerce platforms, integration with mobile payment solutions, and the use of artificial intelligence and machine learning to offer personalized payment plans.
The growing popularity of online shopping is expected to drive the expansion of the e-commerce buy now pay later (BNPL) market in the coming years. Online shopping involves purchasing products or services over the Internet through e-commerce websites or platforms. Its rising adoption is largely attributed to the convenience it offers, enabling consumers to shop at any time and from any location, thus saving time and effort. BNPL services are particularly appealing to online shoppers as they provide flexible, interest-free installment options, enhancing both affordability and convenience. This, in turn, increases digital transactions and improves conversion rates for online retailers. For example, in February 2025, the United States Census Bureau, a US-based government agency, reported that e-commerce sales in 2024 reached an estimated $1,192.6 billion, reflecting an 8.1% increase over 2023. Therefore, the growing trend of online shopping is a key driver behind the expansion of the e-commerce BNPL market.
Leading companies in the e-commerce BNPL space are increasingly offering innovative solutions such as Installments-as-a-Service to attract more consumers, provide greater payment flexibility, and enhance the shopping experience. This approach helps improve customer retention and accelerates sales. Installments-as-a-Service is a fintech solution that allows merchants and e-commerce platforms to provide installment payment options without the need to build or maintain the supporting infrastructure. For instance, in March 2023, Splitit, a U.S.-based payment solutions company, launched an Installments-as-a-Service integration with SAP Commerce Cloud, a cloud-based e-commerce platform focused on delivering scalable and personalized experiences. This integration allows merchants to seamlessly embed Splitit's BNPL functionality into their checkout systems. SAP Commerce Cloud joins Splitit's growing list of platform integrations, which already includes Shopify, Magento, Salesforce Commerce Cloud, Wix, WooCommerce, and BigCommerce. The Installments-as-a-Service offering is tailored to support BNPL services across B2B (Business-to-Business), B2C (Business-to-Consumer), and B2B2C (Business-to-Business-to-Consumer) markets.
In February 2022, Block Inc., a U.S.-based technology and financial services firm, acquired Afterpay for $24.53 billion. The purpose of this acquisition was to enhance Block's suite of financial products, broaden consumer access, increase revenue opportunities for sellers, and strengthen its Square and Cash App ecosystems. Afterpay Limited, based in Australia, is a fintech company known for offering BNPL services in the e-commerce sector.
Major players in the e-commerce buy now pay later market are Amazon.com Inc., Allianz Trade, Bread Financial Holdings Inc., Bajaj Finserv Ltd., Paypal Holdings Inc., Klarna Group Plc, Affirm Holdings Inc., Zip Co Limited, PureSoftware Ltd, Sezzle Inc, Vodeno, Addi, AU Group, Zilch Technology Limited, Zebit Inc, LazyPay Private Limited, Hokodo, Payright Limited, FuturePay Holdings Inc, Flex Money Technologies Pvt Ltd.
North America was the largest region in the e-commerce buy now pay later market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in e-commerce buy now pay later report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa.
The countries covered in the e-commerce buy now pay later market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.
The e-commerce buy now pay later market consists of revenues earned by entities by providing services such as installment payment solutions, credit risk assessment, merchant integration, automated payment processing, and fraud detection. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.
The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).
The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.
E-Commerce Buy Now Pay Later Global Market Report 2025 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.
This report focuses on e-commerce buy now pay later market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.
Where is the largest and fastest growing market for e-commerce buy now pay later ? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward? The e-commerce buy now pay later market global report from the Business Research Company answers all these questions and many more.
The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.
The forecasts are made after considering the major factors currently impacting the market. These include the Russia-Ukraine war, rising inflation, higher interest rates, and the legacy of the COVID-19 pandemic.