United States Buy Now Pay Later Business Report 2024-2029: New Firms are Piloting New BNPL Payment Methods, with Other Firms Forging Strategic Alliances to Further Widen their Distribution

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Feb 09, 2024, 17:15 ET

DUBLIN, Feb. 9, 2024 /PRNewswire/ -- The "United States 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 the country are expected to grow by 14.1% on an annual basis to reach US$132.69 billion in 2024.

The medium to long-term growth story of the BNPL industry in the country remains strong. BNPL payment adoption is expected to grow steadily over the forecast period, recording a CAGR of 9.2% during 2024-2029. The BNPL gross merchandise value in the country will increase from US$116.34 billion in 2023 to reach US$205.76 billion by 2029.

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.

The United States BNPL industry is growing at an accelerated rate, on the back of rising adoption and usage among consumers. This trend is expected to continue further in 2024, as shoppers are leveraging installment payment options to fund their purchases amid higher inflation. The rising popularity of the payment method means that more players are entering the market with their BNPL products.

Existing players, on the other hand, are forging strategic alliances to widen the distribution of their BNPL product offerings. These initiatives are expected to aid the competitive landscape and innovation of the fast-growing BNPL industry over the medium term. Overall, the publisher maintains a robust growth outlook for the BNPL market in the United States over the next three to four years.

An increasing number of shoppers are choosing buy now pay later schemes to fund their purchases

The adoption of BNPL schemes has been on the surge in the United States. According to a report from Adobe Analytics, a record number of holiday shoppers were expected to use the payment method for Cyber Monday shopping, to lessen the inflationary stress on their wallet. Online shoppers were expected to spend somewhere between US$12 billion and US$12.4 billion. Interestingly, around US$782 million of these purchases will be made using services like Klarna and Affirm. This represents an increase of almost 19% compared to last year, according to Adobe Analytics.

The adoption has been increasing even at a time when most BNPL firms are moving away from zero-interest payment models to interest-bearing installment loans. Affirm, one of the leading firms in the sector, announced that 74% of their gross merchandise volume in Q3 2023 consisted of interest-bearing loans. This shows the growing popularity of the BNPL payment method among the United States consumers. The publisher expects the trend to further continue in 2024, supporting the growth of the broader industry from the short to medium-term perspective.

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.

Firms are forging strategic alliances to further widen the distribution of their BNPL product offering in the United States

The demand for BNPL has been growing consistently over the last 12 months and the trend is projected to further continue in the United States market over the medium term. Consequently, to serve more shoppers and increase their gross merchandise volume, firms are entering into strategic partnerships to widen the distribution.

Zip Co., the Australian BNPL firm and one of the leading players in the United States, 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.

From the short to medium-term perspective, the publisher expects more such strategic partnerships in the United States market, as the competitive landscape continues to grow in the sector. This will support the growth of the broader buy now pay later market over the next three to four years. The BNPL payment industry in United States has recorded strong growth over the last four quarters, supported by increased e-commerce penetration.

Reasons to buy

Get a comprehensive understanding of market dynamics for Buy Now Pay Later: Identify market opportunities, major trends, and forecasting (2020-2029). Understand market trends through crucial KPIs like Gross Merchandise Value, Volume, and Average Value per Transaction, to stay ahead of the curve.
Insights by end-use sectors: Evaluate new opportunities across multiple end-use sectors, and obtain market dynamics by end-use sectors in order to swiftly catch up with the latest and upcoming developments in BNPL markets.
Market-specific strategies: Identify growth segments focused on specific opportunities, and analysing market-specific risks and important trends in the BNPL sector with our exclusive blend of quantitative forecasting and innovative insights.
Gain knowledge of consumer attitudes and actions: This report identifies and interprets important Buy Now Pay Later KPIs, such as spend by age, gender, and income level, using data from a proprietary survey.
Develop proactive and lucrative business strategies through market intelligence and forward-looking analysis of BNPL market spend and major opportunities in United States.

Scope

United States BNPL Market Size and Spending Pattern, 2020-2029

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

United States 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

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

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

United States BNPL by Purpose, 2020-2029

Convenience - Short Term Loans
Credit - Long Term Loans

United States BNPL by Business Model, 2020-2029

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

United States BNPL by Merchant Ecosystem, 2020-2029

Open Loop System
Closed Loop System

United States BNPL by Distribution Model Analysis, 2020-2029

Standalone
Banks & Payment Service Providers
Marketplaces

United States BNPL Analysis by Channel, 2020-2029

Online Channel
POS Channel

United States 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

United States 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

United States 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

United States 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

United States 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

United States 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

United States 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

United States 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

United States 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/vcbmsc

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