Buy Now Pay Later Services Market Growth | BNPL Industry Analysis, Size & Trends Report 2030

Buy Now Pay Later (BNPL) Services Market Size and Share

Market Overview

Study Period	2019 - 2030
Market Size (2025)	USD 0.64 Trillion
Market Size (2030)	USD 1.43 Trillion
Growth Rate (2025 - 2030)	17.45% CAGR
Fastest Growing Market	Asia Pacific
Largest Market	Asia Pacific
Market Concentration	Medium
Major Players *Disclaimer: Major Players sorted in no particular order Image © Mordor Intelligence. Reuse requires attribution under CC BY 4.0.

Buy Now Pay Later (BNPL) Services Market (2025 - 2030) — Image © Mordor Intelligence. Reuse requires attribution under CC BY 4.0.

Buy Now Pay Later (BNPL) Services Market Analysis by Mordor Intelligence

The buy now, pay later (BNPL) services market is valued at USD 0.64 trillion in 2025 and is projected to reach USD 1.43 trillion by 2030, reflecting a robust 17.45% CAGR (2025-2030). Surging embedded-credit APIs, smartphone super-apps, and real-time bureau data streams underpin this acceleration, while scale players widen merchant acceptance across discretionary and essential spend categories. Asia-Pacific anchors leadership on both volume and velocity, supported by large underbanked populations and a regulatory push for cashless ecosystems. Healthcare financing, point-of-sale (POS) integrations, and Sharia-compliant models broaden use cases, whereas European late-fee caps and higher global funding costs compress provider margins. Competitive intensity skews toward fintechs, yet deposit-rich banks leverage trust, compliance readiness, and cheap capital to expand their stake in the BNPL services market.

Key Report Takeaways

By channel, the online segment captured 65.2% of the BNPL services market share in 2024, while in-store POS solutions are forecasted to expand at a 27.6% CAGR through 2030.
By end-use industry, fashion & apparel led with 29.6% share of the BNPL services market in 2024; healthcare & wellness is projected to advance at a 29.7% CAGR through 2030.
By age group, Millennials accounted for 42.4% of the BNPL services market size in 2024, while Generation Z is set to expand at 28.2% CAGR through 2030.
By provider type, fintechs held 69.7% share of the BNPL services market size in 2024; banks are set to record the fastest 25.8% CAGR to 2030.
By geography, Asia-Pacific controlled 32.5% of the BNPL services market share in 2024 and is expected to grow at 26.9% CAGR through 2030.

Global Buy Now Pay Later (BNPL) Services Market Trends and Insights

Drivers Impact Analysis

Driver	(~) % Impact on CAGR Forecast	Geographic Relevance	Impact Timeline
Global open-banking mandates boosting bank-fintech BNPL interoperability	+2.6%	Europe; UK; Australia; Singapore; North America spill-over	Medium term (2-4 years)
Islamic-compliant BNPL rollouts accelerating checkout adoption across GCC retail	+2.1%	Saudi Arabia; UAE; Qatar; Southeast Asia	Short term (≤ 2 years)
Real-time credit-bureau and open-banking data feeds enabling healthcare BNPL	+2.4%	North America; Europe; Australia	Medium term (2-4 years)
Smartphone super-apps mainstreaming micro-ticket BNPL for ride-hailing and food delivery	+2.3%	Asia-Pacific; South America	Short term (≤ 2 years)
Employers bundling earned-wage access with BNPL in payroll platforms, increasing repeat purchases among hourly workers	+1.9%	North America, Europe, Australia	Medium term (2-4 years)
Seamless BNPL button integration in livestream-commerce boosting average transaction values	+1.7%	China, Southeast Asia, expanding to North America	Short term (≤ 2 years)

Source: Mordor Intelligence

Global open-banking mandates boosting bank-fintech BNPL interoperability

Saudi Arabia’s Open Banking Framework, fully operational in 2025, lets consumers share account data securely, creating 525 fintech opportunities by 2030^{[1]Saudi Central Bank, “Open Banking Framework,” sama.gov.sa}. Similar schemes in Australia and the UK let BNPL providers pull real-time balances, tighten underwriting, and embed checkout credit within regulated verticals. Project Nexus, spearheaded by the BIS, will interlink instant-payment systems in 2026, cutting cross-border settlement friction. Collectively, these mandates enhance reach, lower fraud, and accelerate cross-sector partnerships across the BNPL services market.

Islamic-compliant BNPL rollouts accelerating checkout adoption across GCC retail

Sharia-aligned plans structured as Murabaha or Qard Hasan propelled users from 76,000 in 2020 to over 10 million by 2025 in Saudi Arabia. Tamara and Tabby achieved unicorn status, with GCC consumers citing 67% preference for Islamic finance when available. Qatar’s sandbox green-lit several BNPL players in 2024, while SAMA issued detailed late-fee disclosure rules in March 2025. Transparent terms enhance trust, boost conversion, and expand the BNPL services market into faith-sensitive demographics.

Real-time credit-bureau and open-banking data feeds enabling healthcare BNPL

FICO’s 2025 scoring update captures BNPL payment histories, enriching thin-file borrower profiles. With 50% of U.S. patients facing USD 1,001–USD 5,000 bills, Mayo Clinic’s April 2025 pact with Affirm embeds installment options into patient portals. The CFPB barred medical-debt data from credit decisions in January 2025, making BNPL an attractive alternative for elective procedures^{[2]Consumer Financial Protection Bureau, “Medical Debt Rule,” consumerfinance.gov}. Better data granularity lifts approvals and cements healthcare as a breakout vertical in the BNPL services market.

Smartphone super-apps mainstreaming micro-ticket BNPL within ride-hailing and food delivery

Grab PayLater transactions surged 215% in 2024 as the super-app embedded split-pay for rides, meals, and groceries. WeChat Pay reports that 68% of users aged 18-35 have used its BNPL toggle, illustrating adoption in low-card-penetration economies. Micro-ticket financing lifts average order value and brings first-time credit to underbanked users, deepening the BNPL services market.

Restraints Impact Analysis

Restraint	(~) % Impact on CAGR Forecast	Geographic Relevance	Impact Timeline
EU Consumer Credit Directive late-fee caps squeezing BNPL margins	−1.3%	European Union; possible UK spill-over	Medium term (2-4 years)
Rising interest rates elevating securitization and funding costs	−1.4%	Global; pronounced in North America and Europe	Short term (≤ 2 years)
Escalating synthetic-identity fraud in fast-growing e-commerce markets inflating chargeback and collection costs for BNPL providers	−1.1%	Global, with higher impact in emerging markets	Medium term (2-4 years)
Currency volatility and high inflation in certain emerging markets widening funding-cost spreads and impairing BNPL profitability	−1.0%	South America, Southeast Asia, Africa	Short term (≤ 2 years)

Source: Mordor Intelligence

EU Consumer Credit Directive late-fee caps squeezing BNPL margins

CCD2, effective 2026, extends consumer-credit scope to loans up to EUR 100,000 and caps APRs at 10% in the Netherlands, 18% in France, and 20% in Germany. Providers must run deeper affordability checks, lifting compliance spend by roughly 18% in the early years. Scale players can absorb the hit, but smaller firms may exit, nudging consolidation across the BNPL services market.

Rising interest rates elevating securitization and funding costs

Affirm’s asset-backed-securities spreads widened 150 bps between 2022-2024. Deposit-funded banks win cost advantages and partner with fintechs, as seen in JPMorgan-Klarna’s February 2025 deal covering 900,000 U.S. merchants. Providers diversify into advertising and subscriptions to cushion margin squeeze, yet smaller players face greater survival pressure within the BNPL services market.

Segment Analysis

By Channel: Omnichannel installments redefine checkout

The online segment at 65.2% share in 2024 anchors the BNPL services market size, yet in-store POS solutions clock a 27.6% CAGR through 2030. Retailers integrating QR or NFC split-pay buttons report a 30% upswing in conversion. Seamless links between e-commerce carts and in-aisle experiences align with 39% of shoppers who blend digital research and physical purchase.

Unified data lets providers furnish instant re-credit across channels, lowering cart abandonment and driving repeat use. As card-network tokenization simplifies terminal integration, the BNPL services market will see rising physical-retail penetration, bridging digital and brick-and-mortar journeys.

Channel Segmentation — Image © Mordor Intelligence. Reuse requires attribution under CC BY 4.0.

By End-Use Industry: Healthcare & wellness outpaces discretionary spend

Fashion & apparel stays volume champion at 29.6% in 2024, yet healthcare & wellness expands fastest at 29.7% CAGR through 2030. Rising elective-procedure costs and high deductibles send patients toward transparent installment schedules. The BNPL services market size for healthcare procedures is slated to jump alongside payer integrations that embed offers into electronic health records.

As Affirm signs 130 medical merchants and FICO ingests repayment histories, approval rates climb and default risk narrows. This accelerates segment diversification, balancing discretionary fashion cycles with essential care demand inside the BNPL services market.

By Age Group: Digital natives drive structural demand

Millennials wield the largest wallet share at 42.4% in 2024, but Generation Z grows quickest at 28.2% CAGR by 2030, reflecting 71% mobile shopping preference. Gen Z averages USD 926 per installment plan, illustrating disciplined ticket sizes that keep delinquency risk modest.

Gamified repayment nudges and social-media rewards enhance loyalty. As Gen Z incomes rise, their lifetime contribution to the BNPL services market extends well beyond entry-level transactions, reinforcing multiyear growth momentum.

By Provider: Banks gain muscle amid fintech leadership

Fintechs retain 69.7% share in 2024, but banks grow at 25.8% CAGR by embedding installments onto debit and card rails. Deposit funding yields cheaper capital and easier regulatory navigation.

Hybrid alliances flourish: issuers license fintech tech-stacks while fintechs tap bank balance sheets. This mash-up enlarges capacity, expands consumer protections, and refines risk analytics, ultimately deepening the BNPL services market.

Provider segmentation — Image © Mordor Intelligence. Reuse requires attribution under CC BY 4.0.

Geography Analysis

Asia-Pacific contributed 32.5% of 2024 revenue and races ahead at 26.9% CAGR. Super-apps like Grab and Lazada embed BNPL toggles in daily life, and Australia’s 2024 decision to fold BNPL into credit-law oversight raises trust without dampening the use. Countries such as Vietnam and Indonesia show triple-digit annual volume spikes, confirming a long runway for the BNPL services market.

North America trails only in share, yet champions product innovation. The CFPB’s 2024 reclassification grants BNPL users card-equivalent dispute rights, favoring scale players with mature compliance. Use cases broaden into fuel and grocery, evidenced by a 40% surge in food-related BNPL transactions from 2023-2024, bolstering the region’s portion of the BNPL services market.

Europe navigates CCD2 headwinds, but e-commerce appetite and instant-credit culture sustain demand. Providers tweak merchant fees and funding maturities to protect spreads under national APR caps^{[3]European Banking Authority, “Opinion on Consumer Credit Directive,” eba.europa.eu}. Strategic processor tie-ups—Scalapay with Marqeta (2024)—enable agile adaptation, maintaining traction within the BNPL services market despite margin compression.

Geography Segmentation — Image © Mordor Intelligence. Reuse requires attribution under CC BY 4.0.

Competitive Landscape

Klarna, Affirm, and Afterpay front the fintech cohort, yet banks such as JPMorgan Chase, Citi, and HSBC marshal capital scale to challenge incumbents. Klarna’s planned Q2 2025 IPO at roughly USD 15 billion aims to bankroll AI-driven risk engines and global expansion. Affirm’s diversified revenue—USD 1.204 billion interest income and USD 675 million merchant fees in 2024—shows resilience under rising rates.

White-space growth emerges in B2B trade finance; MODIFI’s USD 15 million raise in November 2024 underscores demand for cross-border SME installments. Fraud-mitigation partnerships led by the BNPL Association trimmed synthetic-ID losses by 23% in early 2025. Overall, the competitive field exhibits moderate fragmentation, with technology, compliance mastery, and vertical focus determining share shifts inside the BNPL services market.

Buy Now Pay Later (BNPL) Services Industry Leaders

Klarna AB
Afterpay Ltd (Block Inc.)
Affirm Holdings Inc.
PayPal Holdings Inc.
Zip Co Ltd
*Disclaimer: Major Players sorted in no particular order

Affirm, Inc., Afterpay, PayPal Holdings, Inc., Klarna Inc., Sezzle, Splitit, Perpay Inc, Openpay, Quadpay, Inc., LatitudePay — Image © Mordor Intelligence. Reuse requires attribution under CC BY 4.0.

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Recent Industry Developments

March 2025: Affirm pivots to direct-to-consumer after Walmart exclusivity loss.
March 2025: Smartpay and Chubb launch Japan’s first embedded insurance within BNPL.
February 2025: JPMorgan Chase partners with Klarna to extend BNPL to 900,000 U.S. merchants.
November 2024: MODIFI secures USD 15 million to scale B2B BNPL in Asia.

Table of Contents for Buy Now Pay Later (BNPL) Services Industry Report

1. Introduction

1.1 Study Assumptions & Market Definition
1.2 Scope of the Study

2. Research Methodology

3. Executive Summary

4. Market Landscape

4.1 Market Overview
4.2 Market Drivers
- 4.2.1 Global open-banking mandates boosting bank-fintech BNPL interoperability.
- 4.2.2 Islamic-compliant BNPL rollouts accelerating checkout adoption across GCC retail
- 4.2.3 Real-time credit-bureau and open-banking data feeds enabling point-of-sale BNPL expansion into healthcare and other regulated verticals.
- 4.2.4 Smartphone-integrated super-apps mainstreaming micro-ticket BNPL within ride-hailing and food-delivery ecosystems.
- 4.2.5 Employers bundling earned-wage access with BNPL within payroll platforms, boosting repeat-purchase frequency among hourly workers.
- 4.2.6 Seamless embedding of BNPL buttons in livestream-commerce ecosystems driving higher average transaction values.
4.3 Market Restraints
- 4.3.1 EU Consumer Credit Directive late-fee caps squeezing BNPL margins.
- 4.3.2 Rising interest rates elevating securitisation and funding costs.
- 4.3.3 Escalating synthetic-identity fraud in fast-growing e-commerce markets inflating chargeback and collection costs for BNPL providers.
- 4.3.4 Currency volatility and high inflation in certain emerging markets widening funding-cost spreads and impairing BNPL profitability.
4.4 Value / Supply-Chain Analysis
4.5 Regulatory Outlook
4.6 Technological Outlook
4.7 Porter's Five Forces
- 4.7.1 Threat of New Entrants
- 4.7.2 Bargaining Power of Suppliers
- 4.7.3 Bargaining Power of Buyers
- 4.7.4 Threat of Substitutes
- 4.7.5 Competitive Rivalry

5. Market Size & Growth Forecasts (Value)

5.1 By Channel
- 5.1.1 Online
- 5.1.2 Point-of-Sale (In-store)
5.2 By End-Use Industry
- 5.2.1 Consumer Electronics
- 5.2.2 Fashion & Apparel
- 5.2.3 Healthcare & Wellness
- 5.2.4 Home Improvement
- 5.2.5 Travel & Leisure
- 5.2.6 Media & Entertainment
- 5.2.7 Other End-Use Industries
5.3 By Age Group
- 5.3.1 Generation Z (18-28 Years)
- 5.3.2 Millennials (29-44 Years)
- 5.3.3 Generation X (45-60 Years)
- 5.3.4 Baby Boomers (61-79 Years)
- 5.3.5 Silent Generation (80 Years and Above)
5.4 By Provider
- 5.4.1 Fintechs
- 5.4.2 Banks
- 5.4.3 Others
5.5 By Region
- 5.5.1 North America
- 5.5.1.1 United States
- 5.5.1.2 Canada
- 5.5.1.3 Mexico
- 5.5.2 South America
- 5.5.2.1 Brazil
- 5.5.2.2 Argentina
- 5.5.2.3 Chile
- 5.5.2.4 Peru
- 5.5.2.5 Rest of South America
- 5.5.3 Europe
- 5.5.3.1 United Kingdom
- 5.5.3.2 Germany
- 5.5.3.3 France
- 5.5.3.4 Spain
- 5.5.3.5 Italy
- 5.5.3.6 Benelux (Belgium, Netherlands, and Luxembourg)
- 5.5.3.7 Nordics (Sweden, Norway, Denmark, Finland, and Iceland)
- 5.5.3.8 Rest of Europe
- 5.5.4 Asia-Pacific
- 5.5.4.1 China
- 5.5.4.2 India
- 5.5.4.3 Japan
- 5.5.4.4 South Korea
- 5.5.4.5 Australia
- 5.5.4.6 South-East Asia (Singapore, Indonesia, Malaysia, Thailand, Vietnam, and Philippines)
- 5.5.4.7 Rest of Asia-Pacific
- 5.5.5 Middle East and Africa
- 5.5.5.1 United Arab Emirates
- 5.5.5.2 Saudi Arabia
- 5.5.5.3 South Africa
- 5.5.5.4 Nigeria
- 5.5.5.5 Rest of Middle East and Africa

6. Competitive Landscape

6.1 Market Concentration
6.2 Strategic Moves
6.3 Market Share Analysis
6.4 Company Profiles (includes Global level Overview, Market level overview, Core Segments, Financials as available, Strategic Information, Market Rank/Share for key companies, Products & Services, and Recent Developments)
- 6.4.1 Klarna AB
- 6.4.2 Afterpay Ltd (Block Inc.)
- 6.4.3 Affirm Holdings Inc.
- 6.4.4 PayPal Holdings Inc.
- 6.4.5 Zip Co Ltd
- 6.4.6 Sezzle Inc.
- 6.4.7 Splitit Payments Ltd
- 6.4.8 Revolut Ltd
- 6.4.9 LazyPay
- 6.4.10 Scalapay S.r.l.
- 6.4.11 Tabby FZ-LLC
- 6.4.12 Tamara
- 6.4.13 Openpay Group Ltd
- 6.4.14 Sunbit Inc.
- 6.4.15 Uplift Inc.
- 6.4.16 ChargeAfter Inc.
- 6.4.17 Alma SAS
- 6.4.18 Zilch Technology Ltd
- 6.4.19 ZestMoney
- 6.4.20 Simpl

7. Market Opportunities & Future Outlook

7.1 White-space & Unmet-Need Assessment

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Global Buy Now Pay Later (BNPL) Services Market Report Scope

The Buy now pay later market is segmented by Channel (Online and POS), By End User Type (Kitchen Appliances, Other Consumer Electronics, Fashion & Personal Care, Healthcare, Other Products), and By Geography (North America, Europe, Asia-Pacific, Latin America and Rest of the World). For each segment, the market sizing and forecasting have been done in value terms of USD million.

The report also offers a complete background analysis of the Global Buy now, Pays later market, including the analysis and forecast of market size, market segments, industry trends, major players, and growth drivers.

By Channel	Online
	Point-of-Sale (In-store)
By End-Use Industry	Consumer Electronics
	Fashion & Apparel
	Healthcare & Wellness
	Home Improvement
	Travel & Leisure
	Media & Entertainment
	Other End-Use Industries
By Age Group	Generation Z (18-28 Years)
	Millennials (29-44 Years)
	Generation X (45-60 Years)
	Baby Boomers (61-79 Years)
	Silent Generation (80 Years and Above)
By Provider	Fintechs
	Banks
	Others

By Region	North America	United States
		Canada
		Mexico

	South America	Brazil
		Argentina
		Chile
		Peru
		Rest of South America

	Europe	United Kingdom
		Germany
		France
		Spain
		Italy
		Benelux (Belgium, Netherlands, and Luxembourg)
		Nordics (Sweden, Norway, Denmark, Finland, and Iceland)
		Rest of Europe

	Asia-Pacific	China
		India
		Japan
		South Korea
		Australia
		South-East Asia (Singapore, Indonesia, Malaysia, Thailand, Vietnam, and Philippines)
		Rest of Asia-Pacific

	Middle East and Africa	United Arab Emirates
		Saudi Arabia
		South Africa
		Nigeria
		Rest of Middle East and Africa

By Channel

Online

Point-of-Sale (In-store)

By End-Use Industry

Consumer Electronics

Fashion & Apparel

Healthcare & Wellness

Home Improvement

Travel & Leisure

Media & Entertainment

Other End-Use Industries

By Age Group

Generation Z (18-28 Years)

Millennials (29-44 Years)

Generation X (45-60 Years)

Baby Boomers (61-79 Years)

Silent Generation (80 Years and Above)

By Provider

Fintechs

Banks

Others

By Region

North America	United States
	Canada
	Mexico
South America	Brazil
	Argentina
	Chile
	Peru
	Rest of South America
Europe	United Kingdom
	Germany
	France
	Spain
	Italy
	Benelux (Belgium, Netherlands, and Luxembourg)
	Nordics (Sweden, Norway, Denmark, Finland, and Iceland)
	Rest of Europe
Asia-Pacific	China
	India
	Japan
	South Korea
	Australia
	South-East Asia (Singapore, Indonesia, Malaysia, Thailand, Vietnam, and Philippines)
	Rest of Asia-Pacific
Middle East and Africa	United Arab Emirates
	Saudi Arabia
	South Africa
	Nigeria
	Rest of Middle East and Africa

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Key Questions Answered in the Report

What is the forecast growth rate of the BNPL services market?

The BNPL services market is expected to expand at a 17.45% CAGR between 2025 and 2030.

Which segment grows fastest within the BNPL services market?

Healthcare & wellness shows the highest CAGR at 29.7% through 2030, driven by rising out-of-pocket medical expenses.

How will EU regulation influence BNPL profitability?

CCD2 will cap APRs and mandate rigorous credit checks, increasing compliance costs by nearly one-fifth and squeezing provider margins in Europe.

Why are banks entering the BNPL services market aggressively?

Banks possess low-cost deposit funding and strong compliance systems, allowing competitive pricing and faster regulatory approval.

What role do super-apps play in BNPL expansion?

Super-apps embed micro-ticket installments into routine services like ride-hailing, boosting transaction frequency and user acquisition in emerging markets.

How is synthetic-identity fraud being addressed?

Industry-wide fraud-intelligence networks share risk signals, cutting synthetic-ID losses by about 23% among participating BNPL providers.