Buy Now Pay Later Platforms Are Estimated To Witness High Growth Owing To Opportunity In Increasing E-Commerce Merchant

Buy Now Pay Later (BNPL) platforms enable customers to purchase goods or services and pay in installments over time without incurring interest charges. BNPL platforms facilitate online checkout and approval of installment payments at physical and online stores. The increasing demand for buy now pay installments from online and in store shoppers along with rise of e-commerce industry is contributing to the growth of BNPL platforms.

The global Buy Now Pay Later Platforms Market is estimated to be valued at US$ 17.72 Bn in 2023 and is expected to exhibit a CAGR of 10% over the forecast period 2024-2031, as highlighted in a new report published by Coherent Market Insights.

Market Opportunity:

Increasing E-commerce Merchant Adoption: With the growing adoption of e-commerce across the globe along with rise in online shopping, there exists a huge opportunity for BNPL platforms to partner with more e-commerce merchants. Integrating BNPL options on merchant checkout pages can help improve average order value, increase cart conversion rates and boost repeat purchases. As BNPL payment options provide customers flexibility to pay over time without any upfront cost, many online merchants are adopting BNPL platforms to enhance the customer shopping experience and payment options. Both large and small e-commerce merchants stand to benefit by offering convenient monthly installment payment options through BNPL platforms.

Porter's Analysis

Threat of new entrants: Moderate. Large capital requirements and economies of scale deter new players. However, easibility of launching online platforms lowers barriers to some extent.

Bargaining power of buyers: High. Buyers have many alternatives and can easily switch between platforms.

Bargaining power of suppliers: Moderate. Major platforms have negotiating power over merchants due to large customer base.

Threat of new substitutes: Moderate. Emergence of alternative payment methods like digital wallets poses a threat.

Competitive rivalry: High. Intense competition among major established players to gain market share.

SWOT Analysis

Strengths: Convenient payment option driving adoption. Digital nature ensures seamless experience.

Weaknesses: High marketing spends needed to acquire customers. Credit risk if buyers default on payments.

Opportunities: Untapped growth potential in developing nations. Complimentary value-added services can boost revenue.

Threats: Stricter regulations may increase compliance costs. Economic slowdowns can impact repayment abilities.

Key Takeaways

The global Buy Now Pay Later Platforms Market Trends is expected to witness high growth. The global Buy Now Pay Later Platforms Market is estimated to be valued at US$ 17.72 Bn in 2023 and is expected to exhibit a CAGR of 10% over the forecast period 2024-2031.

Regional analysis indicates that Asia Pacific will retain its leading position throughout the forecast period owing to widespread smartphone adoption, emerging middle class, and government initiatives to promote digital transactions. North America will also exhibit lucrative opportunities fueled by rising obsession of Gen Z and millennials with BNPL options.

Key players operating in the Buy Now Pay Later Platforms market are Afterpay, Klarna, Zippay, Splitit, and Affirm. These major players are focused on acquisitions and partnerships to expand into new geographies and gain competitive edge. For instance, Klarna recently acquired buy now pay later provider Bill Pay to solidify its presence in the US market.