BNPL is a payment method allowing consumers to purchase goods or services and pay for them over time, usually through interest-free installments. When using BNPL, customers select this option at checkout, either online or in-store and typically pay a fraction of the total cost upfront. The remaining balance is then divided into equal payments, spread over a set period, such as weeks or months. BNPL providers facilitate the transaction, often charging merchants a fee, while offering consumers a flexible alternative to traditional credit.
The global buy now pay later market was valued at $34,045.28 million in 2019 which grew till 2024 at a compound annual growth rate (CAGR) of more than 46.00%.
Growth In Government Initiative
A growth in government initiatives contributed to the growth of the buy now pay later market in the historic period. Government policies have played a critical role in stimulating the growth of the BNPL sector by increasing consumer access to credit and boosting financial inclusion. Governments have improved transparency and consumer protection on BNPL platforms by implementing regulations and supportive measures. These initiatives have not only increased the use of BNPL services but have also considerably aided the market's overall growth. For example, in May 2024, the Consumer Financial Protection Bureau (CFPB), a US-based independent agency responsible for consumer protection in the financial sector, announced expanded federal rules to protect consumers using BNPL services, requiring BNPL lenders to offer protections similar to those for credit card users. These include the right to dispute charges, receive refunds for returned products and receive periodic billing statements. The new regulations, set to take effect in 60 days, aim to ensure consistency and fairness in the growing BNPL market. Therefore, the growth in government initiatives drove the growth of the buy now pay later market.
Use Of AI-Powered BNPL Services For Providing User-Friendly Experience
Major companies operating in the buy now pay later market are focusing on artificial intelligence (AI) to bring intelligence, efficiency and personalization to BNPL services. The use of AI technology not only facilitates seamless transactions but also contributes to risk management, fraud prevention and the creation of a tailored and user-friendly experience for consumers. For instance, in March 2024, Klarna, a Swedish fintech company that offers BNPL services, launched an AI tool that significantly boosts its customer service operations, handling the workload of 700 full-time agents. This AI technology is vital for enhancing consumer satisfaction and loyalty in a competitive market. The AI assistant efficiently manages a variety of customer inquiries related to Klarna's BNPL services, such as refunds, payment schedules and dispute resolutions. By automating these processes, Klarna delivers faster and more efficient service, essential for users who depend on BNPL options for their purchases.
The global buy now pay later market is highly fragmented, with a large number of small players in the market. The top ten competitors in the market made up to 4.41% of the total market in 2023.
Buy Now Pay Later Market Opportunities And Strategies To 2034 from The Business Research Company provides the strategists; marketers and senior management with the critical information they need to assess the global buy now pay later market as it emerges from the COVID-19 shut down.
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Where is the largest and fastest-growing market for 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 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 history and forecasts market growth by geography. It places the market within the context of the wider buy now pay later market; and compares it with other markets.
The report covers the following chapters
- Introduction And Market Characteristics- Brief introduction to the segmentations covered in the market, definitions and explanations about the segment by channel, by enterprise size and by end-use.
- Key Trends- Highlights the major trends shaping the global market. This section also highlights likely future developments in the market.
- Growth Analysis And Strategic Analysis Framework- Analysis on PESTEL, end use industries, market growth rate, global historic (2019-2024) and forecast (2024-2029, 2034F) market values and drivers and restraints that support and control the growth of the market in the historic and forecast periods, forecast growth contributors and total addressable market (TAM).
- Global Market Size And Growth- Global historic (2019-2024) and forecast (2024-2029, 2034F) market values and drivers and restraints that support and control the growth of the market in the historic and forecast periods.
- Regional And Country Analysis- Historic (2019-2024) and forecast (2024-2029, 2034F) market values and growth and market share comparison by region and country.
- Market Segmentation- Contains the market values (2019-2024) (2024-2029, 2034F) and analysis for each segment by channel, by enterprise size and by end-use in the market. Historic (2019-2024) and forecast (2024-2029) and (2029-2034) market values and growth and market share comparison by region market.
- Regional Market Size And Growth- Regional market size (2024), historic (2019-2024) and forecast (2024-2029, 2034F) market values and growth and market share comparison of countries within the region. This report includes information on all the regions Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa and major countries within each region.
- Competitive Landscape- Details on the competitive landscape of the market, estimated market shares and company profiles of the leading players.
- Other Major And Innovative Companies- Details on the company profiles of other major and innovative companies in the market.
- Competitive Benchmarking- Briefs on the financials comparison between major players in the market.
- Competitive Dashboard- Briefs on competitive dashboard of major players.
- Key Mergers And Acquisitions- Information on recent mergers and acquisitions in the market covered in the report. This section gives key financial details of mergers and acquisitions, which have shaped the market in recent years.
- Recent Developments- Information on recent developments in the market covered in the report.
- Market Opportunities And Strategies- Describes market opportunities and strategies based on findings of the research, with information on growth opportunities across countries, segments and strategies to be followed in those markets.
- Conclusions And Recommendations- This section includes recommendations for buy now pay later providers in terms of product/service offerings geographic expansion, marketing strategies and target groups.
- Appendix- This section includes details on the NAICS codes covered, abbreviations and currencies codes used in this report.
Markets Covered:
- 1) By Channel: Online; POS
- 2) By Enterprise Size: Large Enterprise; Small and Medium Enterprise
- 3) By End-User: Consumer Electronics; Fashion and Garments; Healthcare; Leisure And Entertainment; Retail; Other End-Uses
- Companies Mentioned: Block Inc; Affirm Holdings Inc; PayPal Holdings Inc; Klarna Bank AB; Mastercard Incorporated
- Countries: China; Australia; India; Indonesia; Japan; South Korea; USA; Canada; Brazil; France; Germany; UK; Italy; Spain; Russia
- Regions: Asia-Pacific; Western Europe; Eastern Europe; North America; South America; Middle East; Africa
- Time-series: Five years historic and ten years forecast.
- Data: Ratios of market size and growth to related markets; GDP proportions; expenditure per capita; buy now pay later indicators comparison.
- Data segmentations: country and regional historic and forecast data; market share of competitors; market segments.
- Sourcing and Referencing: Data and analysis throughout the report is sourced using end notes.