US Buy Now Pay Later Services Market Size
| Study Period | 2020 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Historical Data Period | 2020 - 2022 |
| CAGR | 27.50 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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US Buy Now Pay Later Services Market Analysis
The United States Buy Now Pay Later Services Market has achieved a market size of 70 billion USD in terms of payment value for the current year and is poised to grow at a CAGR of 27.5% for the forecast period.
Share of the young generation using BNPL had observed a continuous increase in 2021-22 as compared to 2020 with around 61% of people in the age group (18-24) using BNPL services and it is highest among all other groups showing a positive trend for BNPL market in the United States.
BNPL creates an economic model by adding a new layer to credit schemes. BNPL companies listed in the stock market of different countries are observing an increase in stock price. Mostly, BNPL is a method of spreading out the payment for a short period and is done over purchases made from retailers. Synchrony, Affirm, and Afterpay are a few companies leading the market by providing private credit in several merchant stores. For better financial management, BNPL spreads out the cost of purchase and provides its service by looking over borrower ability to pay, and merchants play a major role in finding these customers.
With the COVID-19 outbreak, most businesses had to shut down to prevent the spread of the virus. With an increasing number of people losing their jobs, resulting in a decline in disposable incomes, BNPL services created an opportunity for people to continue buying the necessary products even after losing their purchasing power. People without access to credit cards or with a poor credit history were also able to buy through BNPL, thus boosting the revenue of online channels and merchants.
With the increasing use of the BNPL option, the availability of other options such as credit cards, and the increasing credit and funding costs, competition in the market is continuously increasing. For BNPL, delinquency rate is observing a continuous increase, which had almost doubled post the pandemic compared to a credit card, which had an almost flat delinquency rate. However, consumers in the United States are adopting the BNPL method to continue their purchases.
US Buy Now Pay Later Services Market Trends
This section covers the major market trends shaping the US Buy Now Pay Later Services Market according to our research experts:
Income of US Households Affecting the BNPL Market
During the COVID-19 outbreak, the US BNPL industry observed a continuous increase with a decrease in the income levels of the country's households. US household income has observed a continuous increase since 2014 from USD 55,613. However, due to the pandemic, the median household income declined from USD 69,560 in 2019 to USD 67,521 in 2021, thus negatively impacting the consumption level of the population and leading to a shift toward BNPL. People with low income and young adults are using BNPL services and are paying the amount through their credit cards. This trend increased due to the growing number of people below the poverty line during the pandemic, from 33.98% in 2019 to 37.25% currently, which is close to the level of 2018.
Increase in Fintech Loans and Credit Market Affecting the BNPL Market
BNPL business originates from consumers and merchants, which is the opposite of the credit card market, where the business originates from banks and credit card companies. BNPL companies as a revenue recovery charge 5-6% of their transaction fee from retailers and merchants. The fee associated with BNPL is mostly greater than the fee associated with credit cards, with traditional credit cards having a processing fee of around 3%. BNPL has a processing fee of 4%. However, BNPL provides customers with the most accessible way of purchasing a product. The BNPL app downloads of major fintech companies observed a continuous increase from 2019 to 2021. However, a decreasing trend was observed in 2022 for firms like Pay Pal, Klarna, Afterpay, Affirm, Zip/Quad Pay, and Sezzle.
US Buy Now Pay Later Services Industry Overview
Despite improvements in the availability of better products and services in the BNPL market, there exists competition between the BNPL and credit card markets, with both trying to increase their market shares and be a part of customer payment methods to generate their revenues. However, BNPL's characteristics, such as accessibility to all classes of the population, no interest payment, or no additional charge when installments are made on time, make it more attractive than credit cards. It has major players; Afterpay, affirm, klarna, American Express and Pay Pal
US Buy Now Pay Later Services Market Leaders
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Afterpay
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affirm
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klarna
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American Express
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Pay Pal
*Disclaimer: Major Players sorted in no particular order
US Buy Now Pay Later Services Market News
- In May 2022, Affirm and Fiserv announced a partnership to make Affirm available to Fiserv enterprise merchant clients by the end of the year. With this partnership, Affirm will become the first buy now pay later provider fully integrated into the Carat operating system from Fiserv.
- In May 2022, Afterpay and trusted care retailer Rite Aid announced their partnership, offering Rite Aid's online shoppers a new way to pay for everyday items in four installments at no additional cost when payment is made on time. This partnership will help customers access and spend responsibly on everyday goods with Afterpay's powerful budgeting tool.
US Buy Now Pay Later Services Market Report - Table of Contents
1. INTRODUCTION
- 1.1 Study Assumptions and Market Definition
- 1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. MARKET DYNAMICS AND INSIGHTS
- 3.1 Market Overview
- 3.2 Market Drivers
- 3.3 Market Restraints
- 3.4 Insights on Various Regulatory Trends Shaping US Buy Now Pay Later Services Market
- 3.5 Insights on Impact of Technology and Innovation in US Buy Now Pay Later Services Market
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3.6 Industry Attractiveness - Porter's Five Forces Analysis
- 3.6.1 Threat of New Entrants
- 3.6.2 Bargaining Power of Buyers
- 3.6.3 Bargaining Power of Suppliers
- 3.6.4 Threat of Substitutes
- 3.6.5 Intensity of Competitive Rivalry
- 3.7 Impact of COVID-19 on the Market
4. MARKET SEGMENTATION
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4.1 By Application
- 4.1.1 Online
- 4.1.2 POS
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4.2 By Product Category
- 4.2.1 Kitchen Appliance
- 4.2.2 Other Electronic Appliance (TV, Mobile, Laptop, Tablets, etc.)
- 4.2.3 Fashion and Personal Care
- 4.2.4 Healthcare
- 4.2.5 Other Product Categories
5. COMPETITIVE LANDSCAPE
- 5.1 Market Concetration Overview
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5.2 Company Profiles
- 5.2.1 Afterpay
- 5.2.2 Affirm Inc.
- 5.2.3 Klarna
- 5.2.4 Am Ex
- 5.2.5 Pay Pal
- 5.2.6 Ziz/Quad Pay
- 5.2.7 Sezzle
- 5.2.8 Open Pay
- 5.2.9 Latitude Pay
- 5.2.10 Splitit*
- *List Not Exhaustive
6. MARKET OPPORTUNTIES AND FUTURE TRENDS
7. DISCLAIMER AND ABOUT US
US Buy Now Pay Later Services Industry Segmentation
With people continuously wanting to purchase more products and the rising fluctuations in the economy, BNPL is becoming an ideal financial solution that allows people to make purchases without paying all at once. In the United States, which has the most fintech companies and start-ups, the competition is continuously increasing for these financial payment systems. The US Buy Now Pay Later Services Market is Segmented by Channel (Online and POS) and by Product Category (Kitchen Appliances, Other Consumer Electronics, Fashion and Personal Care, Healthcare, and Other Product Categories). The report offers market size and forecast values for the US Buy Now Pay Later Services Market in USD billion for the above segments.
| By Application | Online |
| POS | |
| By Product Category | Kitchen Appliance |
| Other Electronic Appliance (TV, Mobile, Laptop, Tablets, etc.) | |
| Fashion and Personal Care | |
| Healthcare | |
| Other Product Categories |
US Buy Now Pay Later Services Market Research FAQs
What is the current US Buy Now Pay Later Services Market size?
The US Buy Now Pay Later Services Market is projected to register a CAGR of 27.5% during the forecast period (2024-2029)
Who are the key players in US Buy Now Pay Later Services Market?
Afterpay, affirm, klarna, American Express and Pay Pal are the major companies operating in the US Buy Now Pay Later Services Market.
What years does this US Buy Now Pay Later Services Market cover?
The report covers the US Buy Now Pay Later Services Market historical market size for years: 2020, 2021, 2022 and 2023. The report also forecasts the US Buy Now Pay Later Services Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
US Buy Now Pay Later Services Industry Report
Statistics for the 2024 US Buy Now Pay later Services . market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. US Buy Now Pay later Services . analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
