by Buy Now Pay Later (BNPL) Platforms provide interest-free installments or deferred payment options for consumers to purchase products and services. BNPL offer customers convenience through flexible payment plans and benefits merchants by driving sales and average order value. The demand for BNPL is rising as they help consumers overcome budgets constraints and affordability issues. The global Buy Now Pay Later Platforms Market is estimated to be valued at US$ 15.38 Bn in 2023 and is expected to exhibit a CAGR of 10% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
The rising adoption of BNPL platforms among millennial and Gen Z consumers is a key trend driving the market growth. Younger consumers prefer BNPL plans as they offer flexibility to break up payments over time without incur interest charges. Moreover, BNPL platforms help merchants boost sales by attracting new customer base and increasing cart size. The growth of e-commerce industry has further fueled the demand for BNPL services as they facilitate online purchases. Major BNPL providers are focusing on strategic partnerships with merchants and payments networks to expand their reach and market share.
SWOT Analysis
Strength: Buy now pay later platforms provide convenience to customers by allowing them to split purchase payments into installments. This increases customer affordability and drives sales for merchants.
Weaknesses: BNPL models rely on generating interest/late payment fees from customers, which can lead to debt traps and financial hardships for some users. Regulatory scrutiny over unfair practices is a risk.
Opportunities: Younger consumers are increasingly adopting BNPL services for budgeting purchases, representing a large growth opportunity. Integration with e-commerce vendors expands the addressable market.
Threats: Traditional lenders like credit cards provide similar payment flexibility with potential for higher credit limits. Aggressive promotion of deferred payment options could attract stricter regulations on lending practices.
Key Takeaways
The Global Buy Now Pay Later Platforms Market Share is expected to witness high growth over the forecast period of 2023 to 2030.
Regional analysis: Asia Pacific region is expected to grow the fastest over the forecast period. Countries like India, China, and Indonesia have a large young population that is adopting BNPL services for budgeting purchases. E-commerce is growing rapidly across verticals like fashion, electronics and travel in Asia, representing opportunities for merchant partnerships.
Key players: Key players operating in the Buy Now Pay Later Platforms market are Baxter International Inc., ICU Medical. Inc, B. Braun Melsungen Ag, Grifols, S.A., Fresenius Kabi USA, LLC, Vifor Pharma Management Ltd, JW Life Science, Amanta Healthcare, Axa Parenterals Ltd, and Salius Pharma Private Limited, Pfizer, Inc, Otsuka Pharmaceutical Co., Ltd, Ajinomoto Co., Inc., B. Braun Melsungen AG, Soxa Formulations & Research Pvt.Ltd, Sichuan Kelun Pharmaceutical Co Ltd. These players are focusing on expanding into high-growth international markets and scaling user acquisition through technology integrations.
Note:
Source: Coherent Market Insights, Public sources, Desk research
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