Smaller Purchases on the Rise: Groceries and Apparel Emerge as Popular Categories for BNPL in the U.S.

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Sep 18, 2023, 17:45 ET

The "North America Buy Now Pay Later Industry and Trends 2023" report has been added to ResearchAndMarkets.com's offering.

DUBLIN, Sept. 18, 2023 /PRNewswire/ -- Buy Now, Pay Later (BNPL) services in the United States experienced a decline in usage in 2022, according to recent research findings. While the value of BNPL payments is projected to nearly double between 2022 and 2026, the growth rate of BNPL payments is expected to significantly decrease during that period.

The number of BNPL users is also projected to increase, but the growth rate of new users is expected to decline. A survey cited in the report revealed a slight decrease in the share of respondents who currently use BNPL services from 2021 to 2022.

As a result, BNPL ranked last among payment methods used at least 5 times per month in North America, with a low single-digit percentage. This suggests that the initial surge in BNPL adoption in the U.S. has slowed down.

Despite the slowdown, Klarna maintains its dominance in the U.S. BNPL market, emerging as the most popular BNPL platform, chosen by over 3 out of 10 BNPL users.

Afterpay followed as the second most used BNPL platform, with Affirm ranking third. Major appliances, electronics, and home furnishings were the top three product categories financed through BNPL services by U.S. adults. Additionally, BNPL orders for groceries and apparel experienced growth, reflecting a shift towards financing smaller purchases.

Key Questions Covered:

U.S. BNPL Market Size: What was the size of the U.S. BNPL market in 2022, and how is it projected to grow through 2026?
Growth of BNPL Users: How is the number of BNPL users in the U.S. expected to develop until 2026?
Attitude Towards BNPL: What is the attitude of online shoppers affected by inflation towards using BNPL services?
Popular BNPL Product Categories: Which product categories were the most popular for purchases made using BNPL in the U.S. in 2022?
Leading BNPL Providers: Who are the most prominent BNPL providers in the U.S.?

Covered Countries:

USA
Canada

Key Companies Mentioned:

Klarna
Afterpay
Affirm
Apple Pay Later
PayPal
Sezzle

Although the growth rate of BNPL usage has slowed in the U.S., the market is still expected to expand, with Klarna maintaining its leadership position in the sector. The popularity of financing smaller purchases, such as groceries and apparel, through BNPL services suggests evolving consumer preferences in the U.S.

Key Topics Covered:

1. Management Summary

2. Global Overview

BNPL Industry and Trends Overview, June 2023
Overview of BNPL Concerns and Regulations, June 2023
BNPL Market Size, in USD billion, 2022e & 2027f
Number of BNPL Users, in millions, 2022e & 2027f
Share of BNPL Accounting for Total B2C E-Commerce Transaction Value, in %, 2022
Payment Methods Used At Least 5 Times Per Month, in % of Respondents, September 2022
Market Shares of BNPL Services, in % of Top B2C E-Commerce Websites Supporting BNPL as a Payment Method, March 2023
Overview of Apple Pay Later, June 2023
Overview of Klarna's Activities in BNPL Landscape, June 2023
Number of Klarna's Users, in millions, & Year-on-Year Change, in %, 2019-2022
Number of Afterpay's Active Users, in millions, & Year-on-Year Change, in %, December 2019, December 2020, December 2021, March 2022
Number of Afterpay's Active Sellers, in thousands, & Year-on-Year Change, in %, December 2019, December 2020, December 2021, March 2022
Number of Affirms's Active Users, in millions, & Year-on-Year Change, in %, June 2019-2022

3. North America

3.1. Regional

Payment Methods Used At Least 5 Times Per Month, in % of Respondents, September 2022

3.2. USA

Overview of BNPL Market and Trends, June 2023
BNPL Payment Value, in USD billion, & Year-on-Year Change, in %, 2021-2026f
BNPL Users, in millions, & Penetration, in % of Internet Users, 2021-2026f
Payment Methods Used for Online Purchases, in % of Current Apple Customers, March 2023
BNPL User Penetration, by Generation, in % of Digital Buyers, 2022e & 2026f
Share of Respondents Currently Using BNPL, in %, 2021 & 2022e
Share of Respondents Interested in Future BNPL Use, in %, 2021 & 2022e
Annual Growth of Online BNPL Purchase Share & BNPL Revenue, in % of Year-on-Year Growth, 2022 vs January-February 2023
Share of Holiday Shoppers Who Say Having Buy Now Pay Later Options Will Be Essential to Them, in %, September 2022
Share of Holiday Shoppers Who Say Having Buy Now Pay Later Options is Nice to Have But Not Essential, in %, September 2022
Attitude Towards Switching Payment Method if the Cost-of-Living Increases Significantly and New Payment Method of Choice if Switched, in %, September 2022
Breakdown of BNPL Users' BNPL Usage Patterns, in %, August 2022
BNPL Payment Terms, by Type of Credit Card Use, in % of BNPL Users, August 2022
Share of BNPL Users Who Expect to Increase Their Use of BNPL, by Type of BNPL Users, in %, August 2022
Share of Respondents Who Trust Organizations to Provide a Secure Environment for Payments and Purchasing, in % of Respondents, September 2022
Most Valuable BNPL Reward Features, in % of BNPL Users, July 2022
Preferences of BNPL Users if BNPL Was Not Offered, in %, August 2022
Share of Adults Willing to Use BNPL Credit to Make a Purchase, by Product Category, in % of Adults, February 2022
Annual Increase of BNPL Orders, by Product Category, in %, January-February 2023
Top Reasons Non-Accepting Merchants Are Not Interested in Offering BNPL, in % of Online Merchants, 2022e
Top 3 BNPL Platforms Used, in % of BNPL Users, June 2022

3.3. Canada

Top Reasons Non-Accepting Merchants Are Not Interested in Offering BNPL, in % of Online Merchants, 2022e
Share of Respondents Who Have Not Heard of BNPL Services Before, in %, July 2022
Share of Respondents Who Have Not Used BNPL Due to Lack of Need for It, in %, July 2022

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

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