Buy Now Pay Later Market To Reach USD 39.99 Billion By 2030; Rising Demand for Installment-Based Payments & Alternative Financing Options To Bolster Growth, Says The Brainy Insights

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Brainy Insights Pvt. Ltd.
Brainy Insights Pvt. Ltd.

North America region currently dominates the buy now pay later market due to the extensive presence of major market players and developed digital economy with high-speed internet connectivity.

Newark, June 28, 2022 (GLOBE NEWSWIRE) -- As per the report published by The Brainy Insights, the global buy now pay later market is expected to grow from USD 5.94 billion in 2021 to USD 39.99 billion by 2030, at a CAGR of 23.6% during the forecast period 2022-2030.

The demand for buy now pay later has grown fast in recent years, and it is expected to grow much more throughout the forecast period. This expansion can be attributed to the rising demand for no EMI-based instalment payments and retailers' increasing adoption of BPNL to improve the customer base. Buy now pay later is a mechanism that allows an individual to purchase without paying the total amount; instead, the amount is paid in paid small instalments over a period of time. These repayments do not carry any interest charges barring some situations, allowing consumers to purchase high-end and luxury items without burning a hole in their pocket. However, the need for specialized tools for the integration of BPNL with the local checkout process of the retailer or merchant is an expensive endeavor, which could hamper the growth of the market as most retailers and merchants operate on a small scale. Furthermore, the growing young population ineligible for credit cards given their zero credit score history will drive this market, as BPNL allows them to purchase items over their budget without any extra burden. BPNL is a convenient and secure way of transacting, making it an ideal option for deferred payments and the ideal substitute for credit cards, which is expected to boost market growth throughout the forecast period considerably.

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Competitive Strategy

To enhance their market position in the global buy now pay later market, the key players are now focusing on adopting the strategies such as product innovations, mergers & acquisitions, recent developments, joint ventures, collaborations, and partnerships.

• Aplazo, a buy now pay later service provider based in Mexico, announced its partnership with Mastercard. The partnership aims at introducing a virtual card in the Latin American market. The virtual card will ensure secure transactions and seamless BNPL installment payments.

Market Growth & Trends

Growth of the buy now pay later market is driven by the rising consumption demand of the credit-averse population. The younger population is a significant contributor to this market as they cannot avail the benefits of credit cards given their nascent credit history. The high hidden fees in credit cards also make it a less attractive option than BNPL. Around 48% of customers affirmed that using BNPL has allowed them to spend 10%-20% more than their credit cards. The growth of the online delivery platforms during the pandemic has also provided a necessary push to expand the BNPL market. The e-commerce boom has helped bring in more customers for the BNPL market. According to a survey conducted by Mercato, around 52% of the 3000 adults who were interviewed admitted to using the BNPL solutions in the past 12 months. The adults were from the age group of 18-24, reflecting the massive contribution the younger population plays in developing the BNPL market. The growing demand has drawn major players to the market, the increased presence of major market players is a positive development for the BNPL market. Increased adoption of smart devices and higher penetration of internet connectivity has stipulated the growth of the market. According to a survey conducted by Cardify, 44% of the 6000 adults found BNPL a beneficial model to plan their purchases.

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Key Findings

• In 2021, the online segment dominated the market with the largest market share of 52% and market revenue of 3.08 billion.

The channel type segment is divided into point-of-sale (POS) & online. In 2021, the online segment dominated the market with the largest market share of 52% and market revenue of 3.08 billion.

• The small & medium enterprises segment is expected to grow at the fastest CAGR of 25.7% over the forecast period.

The enterprise type segment is divided into large enterprise and small & medium enterprise. Over the forecast period, the small & medium enterprise segment is expected to grow at the fastest CAGR of 25.7%.

• In 2021, the retail segment accounted for the largest share of the market, with 32% and market revenue of 1.90 billion.

The application segment is divided into retail, consumer electronics, healthcare, leisure & entertainment, fashion & garment, and others. In 2021, the retail segment accounted for the largest share of the market, with 32% and market revenue of 1.90 billion. The younger population of the millennials and gen-Z are often not eligible for credit cards. BNPL offers an ideal alternative to fulfil the growing consumption of this credit-averse population.

Regional Segment Analysis of the Buy Now Pay Later Market

• North America (U.S., Canada, Mexico)
• Europe (Germany, France, U.K., Italy, Spain, Rest of Europe)
• Asia-Pacific (China, Japan, India, Rest of APAC)
• South America (Brazil and Rest of South America)
• The Middle East and Africa (UAE, South Africa, Rest of MEA)

Among all regions, the North American region emerged as the largest market for the global buy now pay later market, with a market share of around 34% and 2.01 billion of the market revenue in 2021. Due to several significant players in this region, North America is the greatest contributor in terms of market revenue. The region's increasing well-connected network of internet users with high-speed internet connectivity is expected to drive the adoption of BPNL services for everyday purchases. Moreover, BPNL service providers are offering discounts and cashback to develop a competitive edge at par with their credit card providers.

Key players operating in the global buy now pay later market are:

• Affirm
• Afterpay
• Klarna
• LatitutePay
• Openpay
• PayPal
• Prepay Inc.
• QuadPay Inc.
• Sizzle
• Splitit

This study forecasts revenue at global, regional, and country levels from 2019 to 2030. The Brainy Insights has segmented the global buy now pay later market based on the below-mentioned segments:

Global Buy Now Pay Later Market By Channel Type:

• Point-Of-Sale (POS)
• Online

Global Buy Now Pay Later Market By Enterprise Type:

• Large Enterprises
• Small & Medium Enterprises

Global Buy Now Pay Later Market By Application:

• Retail
• Consumer Electronics
• Healthcare
• Leisure & Entertainment
• Fashion & Garment
• Others

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About the report:

The global buy now pay later market is analyzed based on value (USD Billion). All the segments have been analyzed on a worldwide, regional, and country basis. The study includes the analysis of more than 30 countries for each part. The report offers an in-depth analysis of driving factors, opportunities, restraints, and challenges for gaining critical insight into the market. The study includes porter's five forces model, attractiveness analysis, raw material analysis, supply, demand analysis, competitor position grid analysis, distribution, and marketing channels analysis.

About The Brainy Insights:

The Brainy Insights is a market research company, aimed at providing actionable insights through data analytics to companies to improve their business acumen. We have a robust forecasting and estimation model to meet the clients' objectives of high-quality output within a short span of time. We provide both customized (clients' specific) and syndicate reports. Our repository of syndicate reports is diverse across all the categories and sub-categories across domains. Our customized solutions are tailored to meet the clients' requirement whether they are looking to expand or planning to launch a new product in the global market.

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