Impact Analysis of Covid-19

The complete version of the Report will include the impact of the COVID-19, and anticipated change on the future outlook of the industry, by taking into the account the political, economic, social, and technological parameters.

Buy now pay later platforms allow user to purchase products instantaneously and pay for it afterwards. This platform has become very popular in the recent 2-3 years, owing to the ‘No Interest’ benefit. Many buy now pay later platforms such as Afterpay do not charge interest for a defined period of time. Also, in BNPL platforms, the payment can be paid in installments.

The global buy now pay later platforms market is expected to witness significant growth during the forecast period (2020–2027). The growth of the buy now pay later platforms market is majorly attributed to wide number of benefits offered by the buy now pay later platforms to its users. The registration of the buy now pay platforms is very easy. Once the online account on BNPL platforms is created, the user gets instantaneous approval for bills for a defined amount.

The major factor restraining growth of the global buy now pay later platforms market is increasing complaints of the users regarding the high late fees and mounting debts. For instance, Afterpay charges US$ 10 for each missed payment and US$ 7 if the installment remains unpaid after a week. The users who misses all the installments are charged with a late fees of US$ 68. Moreover, the BNPL platforms such as Zip charges users who have an unpaid balance with US$ 6 on a monthly basis.

Buy Now Pay Later Platforms Market - Impact of Coronavirus (Covid-19) Pandemic

COVID-19 pandemic has adversely affected the economies of various countries across the globe. According to the International Monetary Fund Analysis, the global economy is expected to shrink down by 3% percent in the year 2020 compared to year 2019. Along with the decreasing GDP, the purchasing power of people across the globe is also expected to decrease. Moreover, according Coherent Market Insights’ analysis in 2020, the unemployment rate in countries such as the U.S. has increased from 3.8% in 2019 to 8.6% in April 2020. Also, over 20 million citizens in the U.S. have applied for unemployment benefit in the period of February 2020 to April 2020. Owing to all these factors, people across the globe may take the support of BNPL platforms to pay their bills. The online transactions using BNPL platforms is also expected to increase during the forecast period.

North America is expected to hold dominant position in the global buy now pay later platforms market during the forecast period

Statistics:

North America held dominant position in the global buy now pay later platforms market in 2019, accounting for 43.7% share in terms of value, followed by Asia Pacific and Europe.

Figure 1: Global Buy Now Pay Later Platforms Market Share (%), By Region, 2019

Buy Now Pay Later Platforms  | Coherent Market Insights

North America held dominant position in the global buy now pay later platforms market in 2019 and is projected to retain its dominance throughout the forecast period, owing to increased number of internet users.

According to Coherent Market Insights’ analysis, North America had 397 million internet users in 2019 and is expected to exhibit a CAGR of 8.3% during the forecast period. In the recent years, internet users have been mostly using online payment through debit/credit cards, digital wallets, and buy now pay later platforms due to the various benefits such as cashbacks and discounts on the bills.

Asia Pacific is expected to be the fastest growing region during the forecast period. This is owing to increasing mobile internet users in this region. According to Coherent Market Insights’ analysis, mobile internet penetration in Asia Pacific region increased from 45% in 2018 to 49% in 2019. The number of mobile internet users are also expected significantly increase during the forecast period, owing to the rapidly increasing internet users in emerging economies such as China and India. Majorly BNPL payments are done from mobile phones.

Major players operating in the global buy now pay later platforms market include Afterpay, Zippay, VISA, Sezzle, Affirm, Paypal, Splitit, Latitude Financial Services, Klarna, Humm, and Openpay.

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Buy Now Pay Later Platforms Market Report Coverage

Report Coverage Details
Base Year: 2019 Market Size in 2019: US$ 7,320.6 Mn
Historical Data for: 2016 to 2019 Forecast Period: 2020 to 2027
Forecast Period 2020 to 2027 CAGR: 21.2% 2027 Value Projection: US$ 1,130.8 Mn
Geographies covered:
  • North America: U.S. and Canada
  • Latin America: Brazil, Argentina, Mexico, and Rest of Latin America
  • Europe: Germany, U.K., Spain, France, Italy, Russia, and Rest of Europe
  • Asia Pacific: China, India, Japan, Australia, South Korea, ASEAN, and Rest of Asia Pacific
  • Middle East and Africa: GCC Countries, South Africa, and Rest of Middle East and Africa
Segments covered:
  • By End-use Industry: Fashion & Garment Industry, Consumer Electronics, Cosmetic Industry, Healthcare, and Others
  • By Enterprise Size: SMEs and Large Enterprises
Companies covered:

Afterpay, Zippay, VISA, Sezzle, Affirm, Paypal, Splitit, Latitude Financial Services, Klarna, Humm, and Openpay

Growth Drivers:
  • Wide number of benefits offered by BNPL Platforms
  • The increasing number of internet users
Restraints & Challenges:
  • High late fee charges

Partnerships done by BNPL platforms with fashion and apparel stores is expected to drive growth of the buy now pay later platforms market during the forecast period

Among end-use industry, the fashion & garment industry segment is expected to hold dominant position in the global buy now pay later platforms market during the forecast period. This is owing to the partnerships done by BNPL platforms with the fashion and apparels brands. For instance, Afterpay was launched in May 2014, since then it has partnered with various fashion brands such as Ray-Ban, ALLY shoes, NEU Nomads, STIO, KINFLYTE, and others. The retail and online stores of mentioned brands accept Afterpay as bill payment method.

Figure 2: Global Buy Now Pay Later Platforms Market Value (US$ Mn), 2017 - 2027

Buy Now Pay Later Platforms  | Coherent Market Insights

The global buy now pay later platforms market was valued at US$ 7,320.6 Mn in 2019 and is expected to reach US$ 33,638.3 Mn by 2027 at a CAGR of 21.2% between 2020 and 2027.

The buy now pay later platforms have become very popular in the recent 2-3 years. Various e-commerce companies and retail stores are partnering with BNPL platforms. Due to these partnerships, customers can now select buy now pay later platforms as their payment options. The main attracting feature of the buy now pay later platforms is that they do not charge interest to users for a defined period of time. The online account creation on BNPL platforms is very easy and users get instantaneous access to funds. 

Market Dynamics

The global buy now pay later platforms market is expected to grow significantly during the forecast period, owing to the entry of various banks in the buy now pay later platforms market. For instance, in June 2018, Commonwealth Bank, National Australia Bank, and Westpac Banking Corp together launched Beem App. The Beem App allows users to pay, receive, and split the bills. Beem will directly compete with the Overlay App. The Overlay App is a BNPL service provider, which is owned by the Australia and New Zealand Banking Group, Commonwealth Bank, National Australia Bank, and Westpac. Moreover Zip, a BNPL service provider, announced in July 2019 that it will be raising US$ 400 Million through sales of asset backed securities. This amount will help Zip to expand its business. Owing to the above mentioned factors, BNPL platforms market is expected to show a significant growth during the forecast period.

Key features of the study:

  • This report provides in-depth analysis of the global buy now pay later platforms market size (US$ Million) and compound annual growth rate (CAGR %) for the forecast period (2020– 2027), considering 2019 as the base year
  • It elucidates potential revenue opportunities across different segments and explains attractive investment proposition matrices for this market
  • This study also provides key insights about market drivers, restraints, opportunities, new product launches or approvals, regional outlook, and competitive strategies adopted by the leading  market players
  • It profiles leading players in the global buy now pay later platforms market based on the following parameters – company overview, financial performance, product portfolio, geographical presence, market capital, key developments, strategies, and future plans
  • Companies covered as part of this study include Afterpay, Zippay, VISA, Sezzle, Affirm, Paypal, Splitit, Latitude Financial Services, Klarna, Humm, and Openpay
  • Insights from this report would allow marketers and management authorities of companies to make informed decisions regarding future product launches, product upgrades, market expansion, and marketing tactics
  • The global buy now pay later platforms market report caters to various stakeholders in this industry including investors, suppliers, managed service providers, third-party service providers, distributors, new entrants, and value-added resellers
  • Stakeholders would have ease in decision-making through various strategy matrices used in analyzing the global buy now pay later platforms market

Detailed Segmentation

  • Global Buy Now Pay Later Platforms Market, By End-use Industry :
    • Fashion & Garment Industry
    • Consumer Electronics
    • Cosmetic Industry
    • Healthcare
    • Others
  • Global Buy Now Pay Later Platforms Market, By Enterprise Size:
    • SMEs
    • Large Enterprises
  • Global Buy Now Pay Later Platforms Market, By Region:
    • North America
      • By End-use Industry:
        • Fashion & Garment Industry
        • Consumer Electronics
        • Cosmetic Industry
        • Healthcare
        • Others
      • By Enterprise Size:
        • SMEs
        • Large Enterprises
      • By Country:
        • U.S.
        • Canada
    • Europe
      • By End-use Industry:
        • Fashion & Garment Industry
        • Consumer Electronics
        • Cosmetic Industry
        • Healthcare
        • Others
      • By Enterprise Size:
        • SMEs
        • Large Enterprises
      • By Country:
        • Germany
        • U.K.
        • France
        • Italy
        • Spain
        • Russia
        • Rest of Europe
    • Asia Pacific
      • By End-use Industry:
        • Fashion & Garment Industry
        • Consumer Electronics
        • Cosmetic Industry
        • Healthcare
        • Others
      • By Enterprise Size:
        • SMEs
        • Large Enterprises
      • By Country:
        • China
        • India
        • Japan
        • Australia
        • South Korea
        • ASEAN
        • Rest of Asia Pacific
    • Latin America
      • By End-use Industry:
        • Fashion & Garment Industry
        • Consumer Electronics
        • Cosmetic Industry
        • Healthcare
        • Others
      • By Enterprise Size:
        • SMEs
        • Large Enterprises
      • By Country:
        • Brazil
        • Mexico
        • Rest of Latin America
    • Middle East and Africa
      • By End-use Industry:
        • Fashion & Garment Industry
        • Consumer Electronics
        • Cosmetic Industry
        • Healthcare
        • Others
      • By Enterprise Size:
        • SMEs
        • Large Enterprises
      • By Country/Region:
        • GCC Countries
        • South Africa
        • Rest of Middle East and Africa
  • Company Profiles
    • Affirm
      • Company Overview
      • Product Portfolio
      • Financial Performance
      • Key Strategies
      • Recent Developments/ Updates
    • Afterpay
    • Humm
    • Klarna
    • Latitude Financial Services
    • Openpay
    • Overlay
    • Paypal
    • Sezzle
    • Splitit
    • Zippay

“*” marked represents similar segmentation in other categories in the respective section.

Table of Contents

  1. Research Objectives and Assumptions
    • Research Objectives
    • Assumptions
    • Abbreviations
  2. Market Purview
    • Report Description
      • Market Definition and Scope
    • Executive Summary
      • Market Snippet, By End-use Industry
      • Market Snippet, By Enterprise Size
      • Market Snippet, By Region
    • Coherent Opportunity Map (COM)
  3. Market Dynamics, Regulations, and Trends Analysis
    • Market Dynamics
      • Drivers
      • Restraints
      • Market Opportunities
      • Regulatory Scenario
      • Industry Trend
      • Merger and Acquisitions
      • New system Launch/Approvals
      • Value Chain Analysis
      • Porter’s Analysis
      • PEST Analysis
    • Impact of COVID-19
  4. Global Buy Now Pay Later Platforms Market, By End-use Industry, 2017-2027  (US$ Billion)
    • Introduction
      • Market Share Analysis, 2017 and 2027 (%)
      • Segment Trends
    • Fashion & Garment Industry
      • Introduction
      • Market Size and Forecast, 2019–2027, (US$ Billion)
    • Consumer Electronics
      • Introduction
      • Market Size and Forecast, 2019–2027, (US$ Billion)
    • Cosmetic Industry
      • Introduction
      • Market Size and Forecast, 2019–2027, (US$ Billion)
    • Healthcare
      • Introduction
      • Market Size and Forecast, 2019–2027, (US$ Billion)
    • Others
      • Introduction
      • Market Size and Forecast, 2019–2027, (US$ Billion)
  5. Global Buy Now Pay Later Platforms Market, By Enterprise Size, 2017-2027  (US$ Billion)
    • Introduction
      • Market Share Analysis, 2017 and 2027 (%)
      • Segment Trends
    • SMEs
      • Introduction
      • Market Size and Forecast, 2019–2027, (US$ Billion)
    • Large Enterprises
      • Introduction
      • Market Size and Forecast, 2019–2027, (US$ Billion)
  6. Global Buy Now Pay Later Platforms Market, By Region, 2017-2027  (US$ Billion)
    • Introduction
      • Market Share Analysis, By Region, 2017 and 2027 (%)
    • North America
      • Regional Trends
      • Market Size and Forecast, By End-use Industry, 2019–2027 (US$ Billion)
      • Market Size and Forecast, By Enterprise Size, 2019–2027 (US$ Billion)
      • Market Share Analysis, By Country, 2019 and 2027 (%)
        • U.S.
        • Canada
    • Europe
      • Regional Trends
      • Market Size and Forecast, By End-use Industry, 2019–2027 (US$ Billion)
      • Market Size and Forecast, By Enterprise Size, 2019–2027 (US$ Billion)
      • Market Share Analysis, By Country, 2019 and 2027 (%)
        • U.K.
        • Germany
        • Spain
        • Italy
        • France
        • Russia
        • Rest of Europe
    • Asia Pacific
      • Regional Trends
      • Market Size and Forecast, By End-use Industry, 2019–2027 (US$ Billion)
      • Market Size and Forecast, By Enterprise Size, 2019–2027 (US$ Billion)
      • Market Share Analysis, By Country, 2019 and 2027 (%)
        • China
        • India
        • Japan
        • ASEAN
        • Australia
        • South Korea
        • Rest of Asia Pacific
    • Latin America
      • Regional Trends
      • Market Size and Forecast, By End-use Industry, 2019–2027 (US$ Billion)
      • Market Size and Forecast, By Enterprise Size, 2019–2027 (US$ Billion)
      • Market Share Analysis, By Country, 2019 and 2027 (%)
        • Brazil
        • Argentina
        • Mexico
        • Rest of Latin America
    • Middle East and Africa
      • Regional Trends
      • Market Size and Forecast, By End-use Industry, 2019–2027 (US$ Billion)
      • Market Size and Forecast, By Enterprise Size, 2019–2027 (US$ Billion)
      • Market Share Analysis, By Country/Region, 2019 and 2027 (%)
        • South Africa
        • GCC Countries
        • Rest of the Middle East and Africa
  7. Competitive Landscape
    • Company Profiles
      • Affirm
        • Company Overview
        • Product Portfolio
        • Financial Performance
        • Key Strategies
        • Recent Developments/Updates
      • Afterpay
        • Company Overview
        • Product Portfolio
        • Financial Performance
        • Key Strategies
        • Recent Developments/Updates
      • Humm
        • Company Overview
        • Product Portfolio
        • Financial Performance
        • Key Strategies
        • Recent Developments/Updates
      • Klarna
        • Company Overview
        • Product Portfolio
        • Financial Performance
        • Key Strategies
        • Recent Developments/Updates
      • Latitude Financial Services
        • Company Overview
        • Product Portfolio
        • Financial Performance
        • Key Strategies
        • Recent Developments/Updates
      • Openpay
        • Company Overview
        • Product Portfolio
        • Financial Performance
        • Key Strategies
        • Recent Developments/Updates
      • Overlay
        • Company Overview
        • Product Portfolio
        • Financial Performance
        • Key Strategies
        • Recent Developments/Updates
      • Paypal
        • Company Overview
        • Product Portfolio
        • Financial Performance
        • Key Strategies
        • Recent Developments/Updates
      • Sezzle
        • Company Overview
        • Product Portfolio
        • Financial Performance
        • Key Strategies
        • Recent Developments/Updates
      • Splitit
        • Company Overview
        • Product Portfolio
        • Financial Performance
        • Key Strategies
        • Recent Developments/Updates
      • Zippay
        • Company Overview
        • Product Portfolio
        • Financial Performance
        • Key Strategies
        • Recent Developments/Updates
    • Analyst Views
  8. Section
    • References
    • Research Methodology
    • About us and Sales Contact

*Browse 60 market data tables and 40 figures on "Buy Now Pay Later Platforms Market - Global forecast to 2027”.

Frequently Asked Questions

The global buy now pay later platforms market is expected to reach US$ 12,969.0 Million by 2022.
Wide number of benefits offered by BNPL platforms is expected to drive growth of the buy now pay later platforms market during the forecast period.
The fashion and garment industry segment held the largest market share among end-use industry, contributing 52.2% in terms of value in 2019.
North America region held the largest share in the global buy now pay later platforms market in 2019, accounting for 43.7% share in terms of value.
Key players operating in the global buy now pay later platforms market include Afterpay, Zippay, VISA, Sezzle, Affirm, Paypal, Splitit, Latitude Financial Services, Klarna, Humm, and Openpay.
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