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By the end of 2031, the Buy Now Pay Later (BNPL) Platform Market would have grown at a CAGR of 22.4%

According to Future Industry Insights, the buy now pay later (BNPL) platform market generated about US$ 5.2 Bn in 2020. (FMI). The whole market is anticipated to reach US$ 46.9 billion by 2031, growing at a CAGR of 22.4% between 2021 and 2031.

The survey also predicts that the market will achieve a US$ 6.2 Bn valuation by the end of 2021. FMI claims that the availability of use programming connection points (APIs) and quick technological advancements have created sufficient openings for buy now pay later (BNPL) platforms. These developments are now crucial to achieving financial stability, which is driving the market’s expansion.

The popularity of buy now pay later (BNPL) platforms among online business retailers and their customers has dramatically increased over the past few years. The COVID-19 results caused this anomaly, and it appears that the buy now pays later (BNPL) platforms market will continue to expand even in the post-pandemic era. The reasons for this are simple: BNPL is a practical and affordable way to obtain instant credits for making online purchases.

Additionally, the booming e-commerce industry made it easier for global fintech leaders and startups to establish themselves in the BNPL platform market. Consumers’ increasing preference for credit has even compelled established banking players to enter the BNPL market.

For instance, to attract non-credit card consumers, conventional banking firms in many countries have added buy now pay later (BNPL) platform offers to their existing set of financial products.

Key Takeaways: Buy Now Pay Later (BNPL) Platform Market

  • By solution, the buy now pays later (BNPL) software segment is anticipated to account for the leading share in the global demand for the buy now pay later (BNPL) platform during the forecast period. However, the buy now pays later (BNPL) APIs segment is estimated to grow at a robust CAGR of more than 24% through 2031.
  • By enterprise size, the integration of the BNPL platform in small & medium enterprises (SMEs) is anticipated to increase at a CAGR of nearly 23% between 2021 & 2031, while large enterprises are currently dominating the market share.
  • The adoption of the buy now pay later (BNPL) platform by the retail & eCommerce sector is expected to rise at a maximum pace. As per FMI, demand in this segment will increase by a CAGR of around 27% between 2021 and 2031.
  • South Asia & Pacific is expected to lead the market followed by Europe in 2021. North America is anticipated to emerge as the fastest growing region between 2021 & 2031.
  • The market in Japan is expected to progress at a CAGR of around 24% through 2031.
  • In the U.K., sales are expected to increase at a CAGR of close to 29% over the next ten years.

COVID-19 Impact Analysis on Buy Now Pay Later (BNPL) Platform Market

Since remote working and social isolation have helped BNPL service providers build a sizable customer base, the COVID-19 outbreak has resulted in increased usage of BNPL platforms. BNPL has increased in popularity as a result of the pandemic because it offers more flexible financing options and low-interest rates.

Customers who struggled financially during the pandemic can nevertheless afford to make purchases online. BNPL service providers, on the other hand, can make a sizable profit by charging merchants for using the BNPL payment option to draw in more customers while increasing the number of customers that pay little or no interest costs.

The market has previously experienced tremendous growth, but because of the unanticipated COVID-19 epidemic, the market will experience further expansion in 2020. Numerous factors, including the explosive expansion of internet purchasing, are responsible for the current buzz around BNPL.

Additionally, the expanded offering has been made possible by consumers’ rising acceptance of mobile banking products and their improved knowledge of BNPL as an alternative payment method. Finally, the COVID-19 epidemic has created a “perfect storm” that has increased online sales, boosted consumer confidence in online buying, and increased the necessity for certain consumers to manage their financial flow.

Thus, the demand for the buy now pay later (BNPL) platform is anticipated to expand around 1.4X from 2019 to 2021.

Rapid Adoption of Buy Now Pay Later (BNPL) Platforms in Cross-Industry Applications to Propel Sales

The purchase now pays later business model applies to many other industries, even though it has so far mostly centered on retail and e-commerce. Buy now pay later (BNPL) systems might thus spread to other industries, including groceries, in addition to physical stores, opening the door for more omnichannel applications.

Buy now pay later (BNPL) platforms, the newest wave within the wider fintech industry, are poised to further disrupt the traditional banking landscape. The popularity of buy now pays later platforms is projected to increase in the future, especially among younger generations, given the long-term financial effects of Covid-19.

The industry is likely to become more saturated as a result of the entry of seasoned competitors like PayPal and MasterCard, and large banks, fintech startups, and tech behemoths will be vying for customer attention and market share.

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