Buy Now Pay Later Market to Reach Valuation of USD 1,8333.3 Million by 2028 - Increasing Demand for Buy Now Pay Later Market for Growing Popularity as People Seek Alternative Methods of Financing to Drive the Market Growth

Vantage Market Research

Jun 06, 2022

From the period of 2022 to 2028, the Global Buy Now Pay Later Market is expected to reach USD 1,8333.3 Million in terms of revenue, growing at a Compound Annual Growth Rate (CAGR) of 24.9%.

Buy now, pay later is a sort of short-term financing that allows people to buy everyday necessities like clothes, electronics, and home renovation items. It is a point of sale (POS) installment loan mechanism that allows customers to buy things and controls the repayment. Retailers are now offering buy now, pay later options, allowing customers to acquire everyday necessities by selecting an affordable financing plan and paying in installments rather than in one lump sum. Several business owners throughout the world have been using the Buy Now Pay Later payment platform to finance significant equipment, purchase raw materials, and pay staff salaries, fueling the worldwide Buy Now Pay Later Market. Furthermore, because of the increased adoption of Buy Now Pay Later payment technology among the youth, which provides several benefits such as purchasing high-cost smartphones and laptops, paying tuition fees and stationery products, and paying the canteen bill, the Buy Now Pay Later Market is expected to grow. Financial service providers may now offer customers fresh digital offerings thanks to technological improvements and a significant increase in internet access around the world. The growing use of mobile-based apps for making payments is driving up demand for internet banking.

Key Highlights from the Report

  • On the basis of Application, the market is segmented into Retail Goods, Media & Entertainment, Healthcare & Wellness, Automotive, Home Improvement, and Others. The retail goods segment generated the largest market share in 2021, thanks to an increase in consumers spending on everyday basic products and services at retail outlets via the purchase now pay later platform. The healthcare & wellness sector, on the other hand, is expected to increase at the quickest rate throughout the projection period, owing to rising treatment expenditures for different serious ailments such as chronic heart disease, cancer, and cardiovascular disorders. Furthermore, as the number of COVID-19 patients worldwide grows, as does the demand for treatment, individuals all over the world are turning to purchase now pay later services, which is expected to be a lucrative opportunity for the healthcare industry's Buy Now Pay Later platform.

  • On the basis of Channel, the market is segmented into Online Channel and POS Channel. In 2021, the online channel segment led the market, accounting for more than 64.0 percent of global sales. As part of their post-pandemic revival plans, a number of firms throughout the world are forming partnerships to focus on the adoption of the fastest-growing online payment options, such as buy now pay later. Uplift, Inc., a BNPL solution provider, for example, established a relationship with Tripster, an all-in-one trip booking site, in August 2021.

  • Asia Pacific is the fastest regional segment in terms of growth. Due to increases in the cost of numerous home appliances such as smart TVs, music systems, and washing machines, Asia-Pacific is predicted to expand at a high rate during the projection period. Furthermore, the growing demand among youth in Asia-Pacific developing countries for Buy Now Pay Later platforms to acquire high-cost electronic gadgets like smartphones, mobile tablets, and laptops is driving the expansion of the Buy Now Pay Later Market in the region in the next years.

Market Dynamics:

Increase in Adoption of Online Payment Methods Among the People

The adoption of online payment methods by people all across the developing world is speeding up the growth of the purchase now pay later business. The primary digital payment technologies are mobile payment, debit card, and credit card, which provide individuals with several benefits such as lower transaction costs, faster fund transfers, and increased payment security, all of which contribute to the expansion of the purchase now pay later industry. The availability of high-speed internet access, a boom in smartphone adoption, and increased awareness of digital payment services are all essential elements that encourage people to use online payment technology.

Affordable and Convenient Payment Service of Buy Now Pay Later Platforms

The purchase now pay later payment method provides individuals with various advantages, including affordable and convenient payment services, fast credit card fund transfer service at the point-of-sale platform, and increased personal information security, all of which contribute to the market's growth. Furthermore, the purchase now pays later platform supports a QR-code option, which allows individuals to make payments using a scan code and to conduct transactions using UPI techniques, further propelling the market's growth. Furthermore, the Buy Now Pay Later platform enables customers to make secure payments without having to swipe their debit cards, boosting market growth globally.

Over the projection period, North America is expected to have tremendous growth. Many clients in the North American region have started using online payment through digital wallets, purchase now pay later platforms, and credit and debit cards because of the numerous benefits it gives, such as bill discounts and cashback.