Europe Buy Now Pay Later Business and Investment Opportunities Databook 2024: A $354.3 Billion Market by 2029 Amid Growing Consumer Adoption

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Feb 14, 2024, 12:00 ET

DUBLIN, Feb. 14, 2024 /PRNewswire/ -- The "Europe Buy Now Pay Later Business and Investment Opportunities Databook - 75+ KPIs on BNPL Market Size, End-Use Sectors, Market Share, Product Analysis, Business Model, Demographics - Q1 2024 Update" report has been added to ResearchAndMarkets.com's offering.

BNPL payments in Europe are expected to grow by 15.2% on an annual basis to reach US$219.2 billion in 2024. BNPL payment adoption is expected to grow steadily over the forecast period, recording a CAGR of 10.1% during 2024-2029. The BNPL gross merchandise value in the region will increase from US$190.2 billion in 2023 to reach US$354.3 billion by 2029.

The buy now pay later sector is poised for accelerated growth in the European market over the medium term. The rising adoption among consumers, across age groups, will drive the growth of the industry in Europe. Not just young generation shoppers, but even older cohort is turning to the payment solution to fund their everyday purchases, as inflation continues to bite their household income.

The margin pinch, caused by higher interest rates and an inflationary environment, resulted in a few global providers shutting down their operations in Europe. However, this resulted in growth opportunities for other firms, who are expected to expand aggressively across the European market, to accelerate growth rate. Overall, a positive growth outlook remains for the BNPL industry in Europe over the next three to four years.

Firms are expanding in the European market to boost usage and drive growth in the region

With the market projected to grow over the next three to four years in Europe, businesses are expanding in the region to tap into untapped markets. The expansion strategy is also driving the trend of strategic collaborations in the sector.

Marqeta, in October 2023, entered into a strategic partnership with Scalapay to drive the buy now pay later usage in Europe. As part of the collaboration, the two firms will issue virtual cards for online and in-store transactions to Scalapay's BNPL users. The scalable platform offered by Marqeta will support Scalapay to drive better shopping experiences for its users.

Klarna, on the other hand, is also planning to expand its presence across the European region. The firm is seeking in-store partnerships to benefit from the growing usage of BNPL products among consumers across age groups. The move to expand aggressively in the European region comes at a time when a few firms have taken measures to cut down costs.

Zip, for instance, abandoned 10 of the 14 markets it operated in, including the United Kingdom in 2023. Clearpay, in 2023, also ceased operations in many European nations, including Italy, France, and Spain. This is offering growth opportunities for firms like Klarna, who are well-positioned to accelerate growth rate in Europe on the back of rising demand.

An increasing number of Brits are turning to buy now pay later schemes in the United Kingdom

The inflationary environment has put a strain on consumer spending power, with a vast majority of the Brits struggling to even pay their bills. As a result, millions of shoppers have turned to payment solutions like buy now pay later schemes to fund their purchases and daily lifestyle. According to a report from Citizens Advice, 11% of consumers have used the payment method for grocery shopping. This percentage increases to 35% among frequent BNPL users. In another report, published by the Financial Conduct Authority, nearly 14 million Brits were using the BNPL schemes to make purchases in six months, leading to January 2023.

The higher uptake of the BNPL schemes is aiding the gross merchandise value and volume growth for providers. However, this is also resulting in higher delinquencies, with many users not able to make timely repayments.

BNPL startups are raising funding rounds to offer innovative payment solutions in Italy

Amid the rising demand for installment payment solutions across the region, several startups have entered into the sector to tap into the growth market. These startups are also raising funding to reach more customers in the region.

More startups are forecast to raise funding rounds, driving the competitive landscape in the sector. Furthermore, firms are forecast to enter into strategic partnerships, as they seek to widen the distribution of their BNPL product in the in-store segment.

The BNPL payment industry in Europe has recorded strong growth over the last four quarters, supported by increased e-commerce penetration.

This report provides a detailed data-centric analysis of the Buy Now Pay Later (BNPL) industry, covering market opportunities and risks across a range of retail categories. With over 75 KPIs at the country level, this report provides a comprehensive understanding of BNPL market dynamics, market size and forecast, and market share statistics.

It breaks down market opportunities by type of business model, sales channels (offline and online), and distribution models. In addition, it provides a snapshot of consumer behaviour and retail spending dynamics. KPIs in both value and volume terms help in getting an in-depth understanding of end market dynamics.

Report Scope

This report provides in-depth, data-centric analysis of Buy Now Pay Later industry in through 55 tables and 71 charts. Below is a summary of key market segments:

BNPL Market Size and Spending Pattern, 2020-2029

Gross Merchandise Value Trend Analysis
Average Value Per Transaction Trend Analysis
Transaction Volume Trend Analysis

Buy Now Pay Later Revenue Analysis, 2020-2029

Buy Now Pay Later Revenues
Buy Now Pay Later Share by Revenue Segments
Buy Now Pay Later Revenue by Merchant Commission
Buy Now Pay Later Revenue by Missed Payment Fee Revenue
Buy Now Pay Later Revenue by Pay Now & Other Income

Buy Now Pay Later Operational KPIs & Statistics, 2020-2029

Buy Now Pay Later Active Consumer Base
Buy Now Pay Later Bad Debt

BNPL by Purpose, 2020-2029

Convenience - Short Term Loans
Credit - Long Term Loans

BNPL by Business Model, 2020-2029

Two-Party (BNPL offered by retailers)
Three-Party BNPL Offering

BNPL by Merchant Ecosystem, 2020-2029

Open Loop System
Closed Loop System

BNPL by Distribution Model Analysis, 2020-2029

Standalone
Banks & Payment Service Providers
Marketplaces

Buy Now Pay Later Market Share Analysis by Key Players

BNPL Analysis by Channel, 2020-2029

Online Channel
POS Channel

Buy Now Pay Later in Retail Shopping: Market Size and Forecast, 2020-2029

Gross Merchandise Value Trend Analysis
Average Value Per Transaction Trend Analysis
Transaction Volume Trend Analysis

Buy Now Pay Later in Home Improvement: Market Size and Forecast, 2020-2029

Gross Merchandise Value Trend Analysis
Average Value Per Transaction Trend Analysis
Transaction Volume Trend Analysis

Buy Now Pay Later in Travel: Market Size and Forecast, 2020-2029

Gross Merchandise Value Trend Analysis
Average Value per Transaction Trend Analysis
Transaction Volume Trend Analysis

Buy Now Pay Later in Media and Entertainment: Market Size and Forecast, 2020-2029

Gross Merchandise Value Trend Analysis
Average Value per Transaction Trend Analysis
Transaction Volume Trend Analysis

Buy Now Pay Later in Services: Market Size and Forecast, 2020-2029

Gross Merchandise Value Trend Analysis
Average Value Per Transaction Trend Analysis
Transaction Volume Trend Analysis

Buy Now Pay Later in Automotive: Market Size and Forecast, 2020-2029

Gross Merchandise Value Trend Analysis
Average Value Per Transaction Trend Analysis
Transaction Volume Trend Analysis

Buy Now Pay Later in Healthcare and Wellness: Market Size and Forecast, 2020-2029

Gross Merchandise Value Trend Analysis
Average Value Per Transaction Trend Analysis
Transaction Volume Trend Analysis

Buy Now Pay Later in Others: Market Size and Forecast

Gross Merchandise Value Trend Analysis
Average Value Per Transaction Trend Analysis
Transaction Volume Trend Analysis

Buy Now Pay Later Analysis by Consumer Attitude and Behaviour

Sales Uplift by Product Category
Share by Age Group
Share by Income
Share by Gender
Adoption Rationale
Average Monthly Expense segments

For more information about this report visit https://www.researchandmarkets.com/r/q18qy8

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