The "Global 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 - Q2 2024 Update" report has been added to ResearchAndMarkets.com's offering.

The Global BNPL payments are expected to grow by 16.2% on an annual basis to reach US$486.2 billion in 2024.

The medium- to long-term growth story of the global BNPL industry remains strong. BNPL payment adoption is expected to grow steadily over the forecast period, recording a CAGR of 11.1% during 2024-2029. The BNPL gross merchandise value in the region will increase from US$418.2 billion in 2023 to reach US$824.6 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 global buy now pay later industry is poised to grow at an accelerated pace over the medium term. The adoption of the flexible payment solutions 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.

Global Trends

The BNPL market is expected to grow significantly, potentially reaching $450 billion by 2026, driven by increased consumer adoption, particularly among millennials, and integrating BNPL services into e-commerce platforms.

Key players like Visa are expanding their BNPL offerings globally by partnering with financial institutions to enhance access to installment payment solutions. This includes the launch of Visa Installments, which aims to facilitate BNPL transactions across markets like Australia and Canada.

These developments suggest strong growth in the BNPL sector, with both new entrants and established companies innovating to meet consumer demand in a rapidly evolving digital landscape.

Key Product Launches in the Buy Now, Pay Later (BNPL) Sector Over the Last Six Months

Recent BNPL product launches have underscored significant advancements and global expansion. Below are some notable updates:

North America

• Affirm: Affirm continues to dominate the U.S. market by emphasizing its fee-free model for consumers. It has expanded partnerships with major retailers like Amazon and Walmart, enhancing its services for high-value purchases.
• PayPal: PayPal has been integrating BNPL options into its platform, allowing users to make four interest-free payments. This service has been launched in multiple countries, catering to a diverse consumer base.

Latin America

• This fintech startup is gaining momentum in Latin America by offering interest-free BNPL services, allowing customers to pay in three installments. Valued at $700 million, the company is broadening its regional reach.
• Founded by former Uber executives, Nelo has raised $20 million to bolster its BNPL services in Mexico. It enables users to shop at over 100 retailers, including prominent brands like Amazon and Netflix, expanding consumer access to BNPL options.

Africa

• CredPal: This Nigerian fintech has introduced features, including payment, savings, and budgeting tools, alongside its BNPL services. It also offers a credit score-building feature through its virtual card, appealing to a wider regional audience.

Significant Partnerships in the BNPL Sector Over the Last Six Months

North America

• Affirm & Amazon: Affirm partnered with Amazon to offer BNPL options for purchases on the e-commerce platform, expanding its reach to Amazon's extensive U.S. customer base.
• PayPal & Walmart: PayPal integrated its BNPL service with Walmart, allowing customers to pay for purchases over time. This partnership further solidified PayPal's market position in the U.S.

Latin America

• Addi: The Latin American BNPL startup secured a $75 million debt facility from Victory Park Capital to fuel its regional growth and expansion.
• Nelo: Nelo raised $20 million to enhance its services and strengthen partnerships with retailers in Mexico.

Africa

• CredPal & Visa: CredPal partnered with Visa to launch a BNPL service allowing customers to purchase and pay in installments at participating African merchants.

Global Trends

• Visa has expanded its BNPL offerings worldwide by collaborating with financial institutions to enable installment payments. This includes the launch of Visa Installments in regions like Australia and Canada.

These partnerships reflect the growing competition and consolidation in the BNPL sector, as companies strive to broaden their customer base, improve services, and secure global market positions.

Key Mergers and Acquisitions in the BNPL Sector Over the Last Six Months

North America

• Square (Block) & Afterpay: Square (now Block) acquired Australian BNPL firm Afterpay for $29 billion in an all-stock deal, marking one of the largest BNPL acquisitions in 2021.
• PayPal & Paidy: PayPal acquired Japanese BNPL firm Paidy to expand its footprint in the Asia-Pacific region.

Europe

• Klarna: Swedish BNPL giant Klarna made six acquisitions in 2021, including mobile wallet Stocard, price comparison site PriceRunner, trip planner Inspirock, and SaaS platform APPRL, to enhance its customer offerings and market presence.
• Zip & Sezzle: Australian BNPL provider Zip entered merger talks with U.S.-based Sezzle in a $352 million deal to bolster its North American presence and accelerate growth.

Middle East

• Tabby: Gulf-based BNPL startup Tabby raised $50 million in a Series B funding round, valuing the company at $300 million. This investment will help Tabby strengthen its leadership position in the region.
• Tamara: Saudi BNPL firm Tamara raised $110 million in a Series A funding round led by Checkout.com, following an earlier $6 million seed round. Launched in 2020, Tamara has rapidly expanded within the region.

These mergers and acquisitions highlight the increasing competition and market consolidation within the BNPL sector as companies seek to expand, improve services, and solidify their positions globally.

Regulatory and Government Policy Developments in the BNPL Sector Over the Last Six Months

United Kingdom

• The UK government announced plans to regulate BNPL products in February 2021, but the final legislation has been repeatedly delayed, and there is no clear timeline for its introduction. The proposed regulations aim to enhance transparency, enforce creditworthiness checks, and bring BNPL providers under the jurisdiction of the Financial Ombudsman Service.

United States

• In May 2024, the Consumer Financial Protection Bureau (CFPB) issued an interpretive rule requiring BNPL lenders to comply with certain credit card rules under Regulation Z, including billing error resolution and limits on liability for unauthorized use. The CFPB has raised concerns about risks like overextension of credit and loan stacking but has not concluded that BNPL usage directly contributes to consumer financial distress.

New Zealand

• Beginning September 2, 2024, BNPL contracts in New Zealand will be classified as consumer credit contracts under the Credit Contracts and Consumer Finance Act 2003. BNPL providers must comply with certification, fees, lender responsibility, and disclosure requirements and obtain certification from the Commerce Commission before offering BNPL contracts.

These regulatory shifts indicate a global trend toward increased oversight and consumer protection in the BNPL sector, though the specifics and timelines vary by region.

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

Key Attributes:

Companies Featured

• 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

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