by The global Buy Now Pay Later Platforms Market is estimated to be valued at US$ 10.42 Bn or in 2022 and is expected to exhibit a CAGR of 21.5 % over the forecast period 2022 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
Buy Now Pay Later (BNPL) platforms provide consumers an alternative payment method to credit cards by allowing shoppers to split the cost of purchases into multiple interest-free installments. BNPL services are seeing rise in popularity as they offer flexibility and convenience to consumers. The platforms have enabled financial inclusion by providing access to credit to consumers who may not qualify for traditional loans or credit cards. The zero-cost financing and flexibility of BNPL platforms has helped boost sales for merchants.
Market key trends:
Growing e-commerce sales and financial technology adoption: The growth of e-commerce and financial technology has been a major driver for BNPL platforms. As online shopping continues to rise globally, BNPL services provide consumers secure and hassle-free payment option driving their adoption. The platforms are also integrating additional financial services like bill payment which is further fueling their growth.
Partnering with merchants: To expand their merchant base, BNPL providers have been partnering with both online and brick-and-mortar retailers. This has increased visibility and access to BNPL financing for shoppers driving sales for merchants. Large retailers have also developed their own BNPL offerings to better compete. This overall is contributing significantly to the expansion of BNPL industry.
Porter’s Analysis
Threat of new entrants: The BNPL platform market requires huge capital investments for infrastructure and securing partnerships with merchants. This poses high entry barriers for new players.
Bargaining power of buyers: Individual consumers have high bargaining power in the BNPL platform market due to the presence of numerous provider options. Buyers can choose providers offering best terms.
Bargaining power of suppliers: PayTech companies and payment processors which partner with BNPL platforms have moderate bargaining power. They can negotiate better terms with platforms, but cannot disrupt the market on their own.
Threat of new substitutes: Digital wallets and buy now pay later offerings from big Tech are potential substitutes. However, no substitute offers the same easy credit experience currently provided by BNPL platforms.
Competitive rivalry: The BNPL space sees intense competition among numerous established and new players. Companies compete on various dimensions like merchant partnerships, consumer experience, flexible payment options, affordability and credit terms.
Key Takeaways
The global Buy Now Pay Later Platforms Market Trend is expected to witness high growth, exhibiting a CAGR of 21.5% over the forecast period, due to increasing consumer demand for flexible payment options. The market size was valued at US$ 10.42 billion in 2021 and is projected to reach US$ 34.56 billion by 2030.
The US dominates the global BNPL market currently owing to rising adoption of flexible payment methods among massive credit card debts. Australia is another major regional market, benefiting from early entry and penetration of major players like Afterpay and Zippay. The Asia Pacific region is anticipated to showcase fastest growth in the BNPL space supported by growing young spending population and expanding middle class in countries like India and Indonesia.
Key players operating in the Buy Now Pay Later platforms market are Afterpay, Zippay, VISA, Sezzle, Affirm, Paypal, Splitit, Latitude Financial Services, Klarna, Humm, and Openpay. Major companies are focusing on new product launches and enriching consumer experiences to gain competitive edge. Strategic partnerships with retailers are helping key players amplify their market presence.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
