U.S. Buy Now Pay Later Market To Reach $9.20 Billion By 2030

U.S. Buy Now Pay Later Market Growth & Trends

The U.S. buy now pay later market size is expected to reach USD 9.20 billion by 2030, growing at a CAGR of 24.3% from 2023 to 2030, according to a new report by Grand View Research, Inc. The increasing availability of data and analytics tools is one of the primary factors driving the market growth. Buy now pay later (BNPL) providers can leverage data to understand their customers better and tailor their offerings to meet their needs.

In addition, the use of analytics tools has helped BNPL providers to manage risk more effectively, reducing the likelihood of default and driving growth in the market. This has helped to increase the buy now pay later market size in the U.S. by providing a more personalized and streamlined experience for customers. For example, by understanding that younger consumers may prefer shorter repayment periods or lower fees, BNPL providers can adjust their products to meet those needs better.

In February 2023, global payment acceptance solutions provider Ingenico and Splitit, the white-label installment platform that uses existing consumer credit, formed a partnership. The partnership aimed at enabling no-interest, one-touch BNPL capability at the physical checkout experience. They plan to achieve this by leveraging Splitit's Installments-as-a-Service solution and Ingenico's cloud-based Payments-Platform-as-a-Service (PPaaS).

The economic uncertainties brought about by the COVID-19 pandemic have made many consumers more cautious about their spending, leading to an increased demand for payment solutions that allow for budgeting and financial planning. The pandemic has also led to changes in consumer behavior, with more people shopping online instead of in person. BNPL services have been particularly useful in this regard as they allow consumers to spread the cost of their purchases over time, making it easier to manage their finances, thereby driving the U.S. BNPL market.

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U.S. Buy Now Pay Later Market Report Highlights

• The POS segment is expected to grow at a significant CAGR over the forecast period. The contributing factor to the growth is to improve customer experience and foster customer loyalty, numerous businesses are concentrating on offering point-of-sale buy now pay later financing alternatives

• The large enterprises segment dominated the market in 2022. The adoption of BNPL payment solutions by large-scale enterprises is increasing rapidly as they provide customers with a convenient and cost-effective payment option for buying high-value items. With the added convenience of BNPL, customers are encouraged to purchase more products, leading to increased sales for the enterprises

• The healthcare segment is expected to grow at a significant CAGR over the forecast period. BNPL payment methods are gaining popularity as a low-friction alternative to credit cards in the industry. Customers are also inclined towards BNPL payments as they avoid the costly compounding interest and obscure fees that come with credit cards

U.S. Buy Now Pay Later Market Segmentation

Grand View Research has segmented the U.S. buy now pay later market based on channel, enterprise size, and end-use:

U.S. Buy Now Pay Later Channel Outlook (Revenue, USD Million, 2017 - 2030)

• Online

• POS

U.S. Buy Now Pay Later Enterprise Size Outlook (Revenue, USD Million, 2017 - 2030)

• Large Enterprises

• Small & Medium Enterprises

U.S. Buy Now Pay Later End-use Outlook (Revenue, USD Million, 2017 - 2030)

• Retail

  • Consumer Electronics

  • Fashion & Garment

  • Others

• Healthcare

• Leisure & Entertainment

• Automotive

• Others

List of Key Players in the U.S. Buy Now Pay Later Market

• Afterpay US Services, LLC

• PayPal Holdings, Inc.

• Affirm, Inc.

• Spliit

• Sezzle

• Perpay, Inc.

• Uplift, Inc.

• Amazon

• Quadpay, Inc.

• Klarna, Inc.