The US buy now pay later market
DUBLIN, May 31, 2024 (GLOBE NEWSWIRE) — The “US Pay Later Business and Investment Opportunity Databook – 75+ KPIs on BNPL Market Size, End-Use Sectors, Market Share, Product Analysis, Business Models, Demographics – Updated Q1 2024” report has been released. ResearchAndMarkets.com Recruitment.
BNPL payments are expected to grow 14.8% annually, reaching $109 billion in 2024. The mid- to long-term growth outlook for the U.S. BNPL (buy now, pay later) industry remains robust, with an expected CAGR of 9.5% from 2024 to 2029, driven by increased consumer adoption amid high inflation. However, the CFPB has issued rules to ensure BNPL providers offer similar consumer protections as credit card providers (including the right to dispute charges and receive refunds), which could hinder future expansion as the BNPL market is projected to grow in value from $94.94 billion in 2023 to $171.59 billion by 2029.
The adoption of BNPL schemes is booming in the US. According to an Adobe Analytics report, a record number of holiday shoppers are expected to use the payment method to ease inflationary pressure on their wallets with Cyber Monday shopping. Online shoppers are expected to spend between $12 billion and $12.4 billion. Interestingly, around $782 million of these purchases will be made using services like Klarna and Affirm. This represents an increase of around 19% compared to last year, according to Adobe Analytics.
Adoption is growing even at a time when most BNPL companies are moving away from interest-free payment models to interest-bearing installment loans. Affirm, one of the leading companies in the space, announced that 74% of its total transaction volume in the third quarter of 2023 consisted of interest-bearing loans, indicating the growing popularity of BNPL payment methods among US consumers. Publishers expect this trend to continue further into 2024, supporting the overall growth of the industry from a short- to medium-term perspective.
New companies are piloting BNPL payment methods to meet growing demand for their solutions.
The BNPL industry is expected to register steady growth over the next three to four years, owing to the increasing adoption and usage of payment tools. As a result, more companies are entering the space with their own BNPL payment services to tap into the growing market.
For example, Google Pay has announced strategic partnerships with Zip and Affirm to offer users BNPL payment options. The partnerships, announced in December 2023, are expected to roll out the payment solution across the US in 2024. The integration with Zip will begin in January 2024 as part of a pilot project, while Affirm will be available on Google Pay in Q1 2024. In the medium term, Google Pay plans to launch an installment payment tool for users worldwide.
Google Pay's competitor, Apple, has already introduced its payment method for US consumers in 2023. Google Pay's entry into the US BNPL industry is likely to drive the competitive landscape in the fast-growing market in the medium term. Thus, increased competition is expected to drive industry innovation in the next 3-4 years.
The companies are forming strategic partnerships to further expand their BNPL product offerings in the US.
Demand for BNPL has been growing consistently over the past 12 months, and this trend is predicted to continue further in the US market in the medium term. As a result, to serve more consumers and increase total distribution, companies are forming strategic partnerships to expand distribution.
Zip Co., an Australian BNPL company and one of the leading ones in the United States, entered into a partnership with Primer in September 2023. The partnership is part of the company's strategy to further increase its penetration into the US market in the medium term. Through the partnership, Primer will integrate Zip's BNPL services to empower merchants in sectors such as retail, travel and fashion.
Key attributes:
|
Report Attributes |
detail |
|
number of pages |
88 |
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Forecast Period |
2024 – 2029 |
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Estimated market value in 2024 (USD) |
$109 billion |
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Market value forecast to 2029 (USD) |
$171.6 billion |
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Compound Annual Growth Rate |
9.5% |
|
Target area |
America |
range
US BNPL Market Size and Spending Patterns, 2020-2029
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Total Product Value Trend Analysis
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Trend analysis of average value per transaction
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Trading volume trend analysis
U.S. Buy Now, Pay Later Revenue Analysis, 2020-2029
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Buy now, pay later returns
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Postpaid market share (by revenue segment)
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Buy now pay later revenue (excluding merchant fees)
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Deferred earnings (excluding unpaid fees)
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Buy Now Pay Later Revenue (separately Buy Now and Other Revenue)
U.S. Buy Now, Pay Later Operational KPIs and Statistics, 2020-2029
US BNPL by Purpose, 2020-2029
US BNPL by business model, 2020-2029
US BNPL by Merchant Ecosystem, 2020-2029
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Open Loop System
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Closed Loop System
US BNPL Distribution Model Analysis, 2020-2029
US Buy Now Pay Later Market Share Analysis (by Major Companies)
US BNPL Channel Analysis, 2020-2029
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Online Channels
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POS Channel
U.S. Retail Buy Now, Pay Later Market Size and Forecast, 2020-2029
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Total Product Value Trend Analysis
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Trend analysis of average value per transaction
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Trading volume trend analysis
U.S. Buy Now, Pay Later Home Improvement Market Size and Forecast, 2020-2029
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Total Product Value Trend Analysis
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Trend analysis of average value per transaction
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Trading volume trend analysis
U.S. Buy Now, Pay Later Travel Market Size and Forecast, 2020-2029
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Total Product Value Trend Analysis
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Trend analysis of average value per transaction
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Trading volume trend analysis
U.S. Buy Now, Pay Later Media and Entertainment Market: Market Size and Forecast, 2020-2029
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Total Product Value Trend Analysis
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Trend analysis of average value per transaction
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Trading volume trend analysis
U.S. Buy Now, Pay Later Services: Market Size and Forecast, 2020-2029
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Total Product Value Trend Analysis
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Trend analysis of average value per transaction
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Trading volume trend analysis
U.S. Buy Now, Pay Later Automotive Market Size and Forecast, 2020-2029
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Total Product Value Trend Analysis
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Trend analysis of average value per transaction
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Trading volume trend analysis
U.S. Healthcare and Wellness Buy Now, Pay Later Market Size and Forecast, 2020-2029
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Total Product Value Trend Analysis
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Trend analysis of average value per transaction
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Trading volume trend analysis
U.S. “Buy Now, Pay Later” and Other Market Sizes and Forecasts
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Total Product Value Trend Analysis
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Trend analysis of average value per transaction
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Trading volume trend analysis
Buy Now, Pay Later Analysis of U.S. Consumer Attitudes and Behaviors
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