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.
