July 19, 2024
Buy Now Pay Later Platforms Market

The Rising Influence of Afterpay and Affirm in the Global Buy Now Pay Later Platforms Market

The global Buy Now Pay Later Platforms Market is estimated to be valued at US$ 10.42 Bn or Mn in 2022 and is expected to exhibit a CAGR of 21.5 % over the forecast period 2022 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market Overview:
Buy Now Pay Later (BNPL) platforms allow consumers to divide the total cost of a purchase into interest-free installments over a period of time rather than paying the full amount upfront. BNPL has gained wide popularity amongst millennial consumers as it offers flexibility and convenience in payment options.

Market key trends:
The growing e-commerce industry and changing consumer preference towards deferred payment options has fueled the growth of the BNPL market significantly. Brands such as Afterpay and Affirm have established a stronghold in the market by partnering with most major online retailers. Their “buy now, pay later” zero-interest financing options for purchases have boosted sales for merchants. Furthermore, the COVID-19 pandemic accelerated the shift towards online shopping and digital payments, benefiting BNPL platforms.

Market key trends:
The Buy Now Pay Later Platforms market has seen significant growth in the past few years due to the rising popularity and convenience offered by BNPL platforms. With the recent pandemic, more consumers are adopting contactless payments and deferred payment options for shopping. BNPL platforms allow customers to divide the total cost of a purchase into four interest-free installments over six weeks, promoting higher cart values for retailers. They are increasingly partnering with prominent retailers to facilitate BNPL services at checkout. Additionally, the growing millennial and Gen Z population prefers the flexibility and delayed payment functionality of BNPL.

SWOT Analysis
Strengths: BNPL platforms facilitate higher sales for retailers while providing customers flexibility in payments. They experience high adoption rates due to the ease of use.
Weaknesses: BNPL platforms face risks related to default payments and higher operating costs. The business model relies on retaining high levels of customer loyalty.
Opportunities: Emerging markets present significant growth opportunities. Partnerships with larger payment players can help expand merchant coverage.
Threats: Stricter regulations around deferred interest charges can impact profits. Established financial players are launching competing BNPL offerings.

Key Takeaways
The global Buy Now Pay Later Platforms Market Trend is expected to witness high growth, exhibiting CAGR of 21.5% over the forecast period, due to increasing smartphone and internet penetration. This provides accessible shopping experiences and promotes digital payments.

Regional analysis:
The US represents the largest and fastest growing regional market. Favorable demographic trends and financial inclusion have contributed to the growth of the BNPL platforms industry. China is also emerging as a major revenue generator, supported by a large population adopting online and mobile commerce.

Key players:
Key players operating in the Buy Now Pay Later Platforms market are Afterpay, Zippay, VISA, Sezzle, Affirm, Paypal, Splitit, Latitude Financial Services, Klarna, Humm, and Openpay. Afterpay and Klarna have a significant market share due to their early mover advantage and attractive propositions for consumers and merchants across various markets.

1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it