The global Buy Now Pay Later Platforms Market was valued at US$ 10.42 Billion in 2021 and is expected to surpass US$ 59.11 Billion by 2030, registering a CAGR of 21.5% during the forecast period (2022-2030), according to the Global Buy Now Pay Later Platforms Market Report, By End-use Industry (Fashion & Garment Industry, Consumer Electronics, Cosmetic Industry, Healthcare, and Others), By Enterprise Size (SMEs and Large Enterprises), and by Region (North America, Europe, Asia Pacific, Latin America, and Middle East and Africa), published by Coherent Market Insights.
The benefits offered by buy now pay later platforms is expected to propel growth of the market during the forecast period. BNPL service providers allow users to pay the bills in installments. Some BNPL service providers such as Afterpay do not charge interest to users for a duration of two weeks. Currently, credit card users are shifting towards BNPL platforms, as credit cards generally charges an interest of 15% to 20%, annually. The account registration on BNPL platforms is an easy method than the credit card applications.
Furthermore, the increasing number of BNPL users in countries such as Australia is expected to drive the market growth during the forecast period. According to Coherent Market Insights’ analysis, the percentage of online shoppers using BNPL platform in Australia increased from 8.3% in 2018 to 14.7% in 2019. Owing to these factors, the buy now pay later platforms market is expected to show a significant growth during the forecast period.
In November 2022, Afterpay, a buy now, pay later service provider, announced a partnership with Expedia Group, a traveler technology platform. This partnership will continuously allow Expedia Group customers in the US to book hotels and flights with Afterpay’s ‘Pay in 4’ app with the option to pay in four interest-free installments.
Buy Now Pay Later Platforms Market - Impact of Coronavirus (Covid-19) Pandemic:
Many governments across the globe such as India, Spain, and Italy had imposed nationwide lockdowns to prevent the spread of COVID-19 disease. For instance, India had imposed a lockdown which remained for a long time. In the lockdown-imposed countries, people were spending more time at home. Online transactions during the lockdown period were increased. Many e-commerce platforms across the globe had accepted the buy now pay later platforms as their payment options along with Credit/Debit cards and digital wallets. For instance, the e-commerce platform Shopify accepted Afterpay, a BNPL service provider, as a payment option. Owing to the increasing online transactions using BNPL platforms, the market has shown significant growth during the COVID-19 and forecast period.
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Key Trends and Analysis of the Global Buy Now Pay Later Platforms Market:
- North America held dominant position in the global buy now pay later platforms market in 2019 and is expected to retain its dominance throughout the forecast period. This is owing to growing e-commerce industry in North America region. According to Coherent Market Insights’ analysis, the e-commerce industry in North America accounted for US$ 637.8 Million in 2019 and is expected to exhibit a CAGR of 8.4% during the forecast period. E-commerce platforms offer various payment options such as debit/credit cards, digital wallet, and BNPL platforms.
- Asia Pacific is expected to show significant growth during the forecast period, owing to funding offered by various banks to BNPL platforms. For instance, according to a press release of Afterpay in May 2017, Afterpay received US$ 200 Million from the National Australian Bank as investment.
- Europe, Middle East, and Africa are also expected to exhibit significant growth during the forecast period, owing to entry of giant retailers in the BNPL industry. For instance, Marks and Spencer Group plc, a U.K.-based multinational retailer, started offering buy now pay later services to its customers from October 2019.
- Among end-use industry, the fashion & garment industry segment held dominant position in the market in 2019 and is expected to retain its dominance during the forecast period. This is owing to economic loans offered by the BNPL platforms.
- 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