Global B2C Buy Now Pay Later Market Subscription 2024 - New Firms are Piloting the BNPL Payment Method to Tap into the Growing Demand for the Solution

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Mar 27, 2024, 10:15 ET

DUBLIN, March 27, 2024 /PRNewswire/ -- The "Global B2C Buy Now Pay Later Market Intelligence Databook Subscription - Q1 2024" report has been added to ResearchAndMarkets.com's offering.

Global BNPL payments are expected to grow by 16.4% on an annual basis to reach US$633.2 billion in 2024. BNPL payment adoption is expected to grow steadily over the forecast period, recording a CAGR of 11.4% during 2024-2029.

The global BNPL gross merchandise value is forecast to increase from US$543.8 billion in 2023 to reach US$1,088.3 billion by 2029.The global buy now pay later industry is poised to grow at an accelerated pace over the medium term. The adoption of the flexible payment solution is growing across regions. While the unbanked and underbanked consumers are driving the adoption in markets like Latin America and Africa, higher inflation and cost of living crisis has resulted in more Europeans using the payment solution.

In the Middle East, too, consumers are using the BNPL schemes for purchases, including essentials and luxury. Providers are also raising funding rounds to scale their business across the region. In Asia Pacific, as well, the market is poised for accelerated growth, with India and Southeast Asian countries projected to lead regional market.

Firms are entering into strategic partnerships to widen the distribution of their BNPL products

Amid the pent-up demand for credit services among consumers globally, providers are entering into strategic collaborations to reach more consumers, while targeting higher gross merchandise value.

Klarna, for instance, entered into strategic partnership with Walmart Canada, enabling shoppers to make deferred payments at the retailer. The collaboration comes at a time when the acceptance of BNPL is growing at a rapid rate among Canadians. Globally, Klarna has partnered with more than 500,000 retailers and the number is poised to grow further in 2024.
Zip Co., the Australian BNPL firm, entered into a collaboration with Primer in September 2023. The partnership is part of the firm's strategy to further increase its penetration in the United States market over the medium term. Under the collaboration, Primer will integrate the BNPL offering of Zip, thereby empowering merchants from sectors such as retail, travel, and fashion among others.

New firms are piloting the BNPL payment method to tap into the growing demand for the solution

The BNPL industry is poised to record steady growth over the next three to four years, amid higher adoption and usage of the payment tool. Consequently, to tap into the growing market, more players are entering the sector with their own BNPL payment service.

Google Pay, for instance, announced strategic partnerships with Zip and Affirm to offer its users with a BNPL payment option. The partnerships, announced in December 2023, will see the rollout of the payment solution across the United States in 2024. The integration with Zip will begin in January 2024 under the pilot project. Affirm, on the other hand, will be made available on Google Pay during Q1 2024. Google Pay, over the medium term, is planning to launch the installment payment tool to its global user base.

Google Pay's competitor, Apple, has already launched the payment method for consumers in the United States in 2023. The entry of Google Pay, in the US BNPL industry, is set to drive the competitive landscape in the fast-growing market over the medium term. The growing competition is, therefore, expected to aid innovation in the industry over the next three to four years.

Regulatory activities are projected to pick up pace in the global buy now pay later market in 2024

With the market growing at a rapid rate, regulatory activities are also projected to pick up pace in the global market over the medium term. Central Banks, especially in the Middle East, have announced new regulatory requirements for providers in the region.

The UAE Central Bank, in December 2023, announced new regulations to oversee BNPL services. According to the Central Bank, businesses providing BNPL services must operate as agents of licensed banks or financial institutions, with approval from the central bank. The Saudi Central Bank announced new regulations for the fast-growing BNPL industry in December 2023. The rules announced by the Central Bank include provisions regarding licensing requirements and other regulatory measures such as information security standards, internal policies, and measures to combat financial crimes.
The New York State Governor, in January 2024, also revealed that she plans to propose new regulations for the fast-growing BNPL market. The legislation would require BNPL providers to acquire a license for operating in the state. If it happens, New York will become the first state in the country to have such legislation. However, it is not the first state to regulate the BNPL industry. Afterpay and Klarna withdrew operations from New Mexico due to the regulations that came into effect in January 2023. The regulation, notably, limited the late fee model adopted by BNPL firms.

Many regulatory authorities, globally, are concerned about the growing debt trap due to higher adoption of BNPL schemes, even among unworthy credit borrowers. Consequently, regulatory activities are forecast to gain momentum from the short to medium-term perspective.

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. The report covers Argentina, Australia, Brazil, Canada, China, France, Germany, India, Indonesia, Italy, Kenya, Mexico, Nigeria, Philippines, Russia, South Africa, Thailand, United Arab Emirates, United Kingdom and United States.

Report Scope

Country reports in this bundled offering provide in-depth analysis of Buy Now Pay Later industry. Below is a summary of key market segments:

BNPL Market Size and Spending Pattern

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

Buy Now Pay Later Revenue Analysis

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

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

BNPL by Purpose

Convenience - Short Term Loans
Credit - Long Term Loans

BNPL by Business Model

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

BNPL by Merchant Ecosystem

Open Loop System
Closed Loop System

BNPL by Distribution Model Analysis

Standalone
Banks & Payment Service Providers
Marketplaces

Buy Now Pay Later Market Share Analysis by Key Players

BNPL Analysis by Channel

Online Channel
POS Channel

Buy Now Pay Later in Retail Shopping:

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

Buy Now Pay Later in Home Improvement:

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

Buy Now Pay Later in Travel:

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

Buy Now Pay Later in Media and Entertainment:

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

Buy Now Pay Later in Services:

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

Buy Now Pay Later in Automotive:

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

Buy Now Pay Later in Healthcare and Wellness:

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

Buy Now Pay Later in Others:

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

Companies Mentioned

Wipei
PagoMisCuentas
Uala
Afterpay
Zippay
Humm
OpenPay
Payright
Affirm
After Pay
Klarna
Sezzle
Paypal
Alipay
Tencent
JD Baitio
Meituan
Alma
Cofidis
RatePay
Afterpay
Simpl
PineLabs
Zest Money
Paytm
Lazypay
Akulaku
Kredivo
Atome
Splitit
GoJek Paylater
Klarna
ScalePay
Mash and Domec JV
SplittyPay
Aspira
Lipa Later
Miti
Flexpay Technologies
Julla
Nelo
Kueski
finvero
Aplazo
Atrato
PayQart
CD Care
Buynowpaylater.com
Jumia Flex
Carnon
TendoPay
Cashalo
BillEase
Plentina
Zip
Mokka
Halva
Tinkoff
Zoodpay
Mobicred
More Tyme
Payflex
Pay Just Now
PayUp
Shopee PayLater
Zilingo
PowerBuy
Pacepay
Tabby
Postpay
Tamara
Spotii
Clearpay
Paypal Credit
Laybuy
Paypal
Affirm
Futurepay
Addi
Cleo
DiniePay
Truepay

For more information about this report visit https://www.researchandmarkets.com/r/ytaaj1

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