The global buy now pay later market size surpassed USD 19.23 billion in 2024 and is predicted to reach around USD 93.31 billion by 2034, registering a CAGR of 17.11% from 2025 to 2034.
Highlights of the Buy Now Pay Later Market
- Asia Pacific dominated the global market in 2024.
- North America is anticipated to grow at the fastest rate in the market during the forecast period.
- By component, the platform/solutions segment held a dominant presence in the market in 2024.
- By component, the services segment is expected to grow at the fastest rate in the market during the forecast period of 2025 to 2034.
- By purchase ticket size, the small ticket item (up to US$ 300) segment accounted for a considerable share of the market in 2024.
- By purchase ticket size, the mid ticket items (US$ 300 - US$ 1000) segment is projected to experience the highest growth rate in the market between 2025 and 2034.
- By business model, the business driven segment led the buy now pay later market.
- By business model, the customer driven segment is set to experience the fastest rate of market growth from 2025 to 2034.
- By mode, the online segment registered its dominance over the market in 2024.
- By mode, the offline segment is anticipated to grow with the highest CAGR in the market during the studied years.
- By vertical, the electronics segment maintained a leading position in the market in 2024.
- By vertical, the fashion segment is projected to expand rapidly in the market in the coming years.
Industry Valuation and Growth Rate Projection
| Industry Worth |
Details |
| Market Size in 2025 |
USD 22.52 Billion |
| Market Size by 2034 |
USD 93.31 Billion |
| Market Growth Rate from 2025 to 2034 |
CAGR of 17.11% |
The buy now pay later market, also referred to as BNPL, is a form of short-term financing service that allows customers access to small amounts of credit and repaying the loans in small monthly or weekly installments. The complete costs are fragmented into troublesome payments. These services seldom charge any interest, making them a better and cost-effective choice than credit cards and other payment options. These types of payment options help people take the load of the total payment out of people’s heads. It is super convenient for consumers to make payments easily. No doubt, it is the most sought-after payment option. Some of the benefits of BNPL can be listed as accessibility, monetary elasticity, almost no interest charged, and a rise in customer loyalty.
Buy Now Pay Later Market: Stats and Figures
- Following the PYMNTS Intelligence report, the buy now, pay later market in the U.S. is $175 billion.
- Around 40% of global GDP for payment flows comes from the APAC region.
- As per GlobalData, Buy Now, Pay Later (BNPL) in India shot up from 0.1% in 2019 to an estimated 5.8% in 2023.
- Digital wallets were calculated to be nearly 50% of global e-commerce transaction value in 2023, and the value is on the verge of increasing to 61% by 2027.
Industry Leader Announcements
Luc Andreani, Chief Operations Officer, Foodpanda:
Highlighting the customer needs of making payments easily, Andreani says, “By adopting tokens, we have streamlined the checkout process and have achieved a 3.3 per cent increase in our payment success rate. This has boosted our revenue by reducing the number of payment declines and authorising transactions more quickly. With Cybersource’s well-established reputation for payment stability and uptime (the period when a computer system works without any problems), we are confident about embarking on this network tokenisation journey, which can simplify, secure, and enhance the payment experience for our customers and merchants.”
How AI Has Benefitd the Market
The buy now pay later market, along with AI, can be immensely helpful. From predictive modelling to generating exact credit scores of individuals, AI covers all that is essential for enabling smooth sailing business transactions and payments.
- Accuracy in transactions: Machine learning tools take note of whether the transactions are being approved or not, ensuring authentic and accurate deals.
- Cost beyond borders: While making payments on a global scale, AI can spot the most cost-friendly transactions for consumers and businesses.
- IVR Interactive Voice Response payment systems: These systems limit the requirement of human interaction by providing assistance, 24/7, over the phone using AI.
- Coping with risks: AI algorithms scrutinize the patterns in transactions, social behavior, etc., so that accurate credit scores can be obtained and risks can be evaluated.
Geographical Insights
The global buy now, pay later market is experiencing significant growth, with APAC maintaining its position as the dominant region while Europe emerges as the fastest-growing market. The North America region is estimated to grow swiftly in the next few years.
North America
The North American region is anticipated to grow as companies from different countries are willing to invest in the buy now, pay later sector belonging to the same.
- Currently, in the United States, the B2B segment is bringing growth to the BNPL marketplace. Klarna extended its B2B BNPL contributions in the US via a partnership with J.P. Morgan Chase.
- Klarna acknowledged the US as its largest B2C market in 2023.
Europe
The European region seems to grow at a rapid pace as companies tie up and bring advances in the fintech sector.
- Klarna is collaborating with Dutch payments fintech Adyen to add a payment option near physical payment machines in retail stores, which Amsterdam’s fintech merchant partners utilize.
APAC
The buy now, pay later market is leading its way in the APAC region, owing to higher demand for mobile wallets.
- In comparison with Europe, the use of mobile wallets was considerably higher in Asia. While looking for the topmost mobile wallet adoption rates in various countries, 9 out of 10 areas were positioned in the APAC region.
Recent Developments:
- Klarna, a Swedish fintech, has joined hands with JPMorgan Payments to develop its buy-now-pay-later (BNPL) facilities to the bank's business network. Affirm initiated a collaboration with airline-owned network UATP for travelers so that they can make payments via buy now, pay later (BNPL).
Competitive Landscape
The buy now pay later market is highly competitive, with leading finance companies such as Affirm Holdings, Inc., Sezzle Inc., Zip Co Limited, Klarna, Afterpay, PayPal Credit, Quadpay, Splitit, and Amazon Pay Later holding the largest market share. Emerging fintech firms also play a crucial role by introducing innovative technologies by advancing a dynamic and evolving competitive landscape.
The market is dominated by several financial services companies renowned for their significant contributions to developing easy payment methods. Based on new data, the top three leading companies are:
- Company Name: Affirm Holdings, Inc.
- Year of Incorporation: 2012
- Headquarters: San Francisco, California
The annual revenue of Affirm Holdings, Inc. was $2,322,999 in 2024.
- Company Name: Sezzle Inc.
- Year of Incorporation: 2016
- Headquarters: Minneapolis, United States
The gross profit of Sezzle Inc. grew from $112,982.86 in 2023 to $219,362.93 in 2024.
- Company Name: Zip Co Limited
- Year of Incorporation: 2009
- Headquarters: Sydney, Australia
The gross profit of Zip Co Limited was accounted to be $574,645 in 2024.
