Market Size of US Buy Now Pay Later Services Industry
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 |
Need a report that reflects how COVID-19 has impacted this market and its growth?
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 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 Size Summary
The United States Buy Now Pay Later (BNPL) services market has experienced significant growth, driven by its appeal to younger consumers and those with limited access to traditional credit options. BNPL offers a flexible payment model that allows consumers to spread the cost of purchases over a short period, making it an attractive alternative to credit cards. This model has gained traction, particularly among the 18-24 age group, and has been bolstered by the economic challenges posed by the COVID-19 pandemic. The pandemic led to a decline in disposable incomes, prompting consumers to turn to BNPL services to maintain their purchasing power. Companies like Synchrony, Affirm, and Afterpay have emerged as leaders in this space, providing private credit solutions across various retail platforms.
Despite the growing popularity of BNPL, the market faces increasing competition from traditional credit options and other payment methods. The delinquency rates for BNPL services have risen, contrasting with the more stable rates seen in credit cards. However, BNPL remains appealing due to its accessibility and lack of interest payments when installments are made on time. The market is characterized by partnerships and integrations, such as Affirm's collaboration with Fiserv and Afterpay's partnership with Rite Aid, which aim to enhance the consumer experience and expand market reach. These developments highlight the ongoing evolution and competitive dynamics within the BNPL sector, as it seeks to capture a larger share of consumer spending.
US Buy Now Pay Later Services Market Size - Table of Contents
-
1. MARKET DYNAMICS AND INSIGHTS
-
1.1 Market Overview
-
1.2 Market Drivers
-
1.3 Market Restraints
-
1.4 Insights on Various Regulatory Trends Shaping US Buy Now Pay Later Services Market
-
1.5 Insights on Impact of Technology and Innovation in US Buy Now Pay Later Services Market
-
1.6 Industry Attractiveness - Porter's Five Forces Analysis
-
1.6.1 Threat of New Entrants
-
1.6.2 Bargaining Power of Buyers
-
1.6.3 Bargaining Power of Suppliers
-
1.6.4 Threat of Substitutes
-
1.6.5 Intensity of Competitive Rivalry
-
-
1.7 Impact of COVID-19 on the Market
-
-
2. MARKET SEGMENTATION
-
2.1 By Application
-
2.1.1 Online
-
2.1.2 POS
-
-
2.2 By Product Category
-
2.2.1 Kitchen Appliance
-
2.2.2 Other Electronic Appliance (TV, Mobile, Laptop, Tablets, etc.)
-
2.2.3 Fashion and Personal Care
-
2.2.4 Healthcare
-
2.2.5 Other Product Categories
-
-
US Buy Now Pay Later Services Market Size 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.