by The Buy Now Pay Later (BNPL) platforms provide the customers with an alternate payment method to purchase goods and services. Some key features of BNPL platforms include flexibility to delay payments for a certain period without any additional charges, installment payments over predefined timelines with low or no interest charges, and options to shop from multiple merchant networks through a single BNPL account. BNPL platforms have gained immense popularity among millennial shoppers who prefer greater flexibility and control over their finances.
The global Buy Now Pay Later Platforms Market is estimated to be valued at US$ 17.72 Bn in 2024 and is expected to exhibit a CAGR of 10% over the forecast period 2024 to 2031, as highlighted in a new report published by Coherent Market Insights.
Market Dynamics
Rising demand for flexible payment options by millennial shoppers is a key driver for the growth of BNPL platforms market. As highlighted in the heading, millennial shoppers, who form a major portion of retail sales, prefer flexible payment options that allow them to better manage cash flows. This has increased the demand for BNPL services globally. Additionally, the easy eligibility check and quick approvals along with zero cost EMI offerings on BNPL platforms is further fueling their adoption rate. BNPL also provide merchants with opportunities to increase sales and average ticket size. Consumers can pay for high-value items over time with small and manageable installments through BNPL without any credit checks. This encourages more purchases and spends on the merchants’ platforms.
Segment Analysis
The global buy now pay later platforms market can be segmented based on channel as retail and e-commerce. The e-commerce segment is estimated to dominate the market owing to the increasing penetration of internet and smartphones across the globe. Technological developments have enabled seamless e-commerce experiences which allow consumers to complete transactions online in just a few clicks. This has significantly boosted the adoption of BNPL services for online purchases.
PEST Analysis
Political: No major political factors are impacting the growth of the BNPL market currently. Governments are generally encouraging financial inclusion and supporting the development of digital payment solutions.
Economic: Strong economic growth in developing nations is driving higher discretionary spending. The increasing adoption of digital payment methods is also supported by good economic conditions in major markets. However, an economic slowdown could impact BNPL transaction volumes.
Social: Younger consumers are more willing to adopt digital payment methods and manage finances online. Social media influence has made BNPL an attractive option for purchases. However, some may perceive BNPL platforms as promoting overspending.
Technological: Advancements in digital payment technologies and open banking are enabling the seamless operation of BNPL services. Partnerships with merchants allow embedded checkout options. Mobile apps provide great convenience to users.
Key Takeaways
The global Buy Now Pay Later Platforms Market Trends is expected to witness high growth over the forecast period between 2024 to 2031 supported by the expanding middle class population globally. The global Buy Now Pay Later Platforms Market is estimated to be valued at US$ 17.72 billion in 2024 and is expected to exhibit a CAGR of 10.4% over the forecast period 2025-2032.
Regional analysis: The Asia Pacific region is projected to exhibit strong growth in the BNPL market supported by expanding middle-class consumers and rising digital and financial inclusion. China has emerged as a lucrative market for BNPL platforms owing to high e-commerce activity and adoption of alternative payment methods. Other high potential countries include India, Indonesia and Malaysia.
Key players: Key players operating in the buy now pay later platforms market are Baxter Interglobal, Splitit, Afterpay, Zip Co, Quadpay, Affirm, Klarna, PayPal, and Laybuy. These companies have expanded client bases through strategic partnerships and promotional campaigns. Several players are also investing aggressively in scaling up operations internationally.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
