The North America buy now pay later market size was estimated at USD 5.38 billion in 2024 and is projected to be worth around USD 26.59 billion by 2034, growing at a CAGR of 17.32% from 2025 to 2034.
| Industry Worth | Details |
| Market Size in 2025 | USD 6.31 Billion |
| Market Size by 2034 | USD 26.59 Billion |
| Market Growth Rate from 2025 to 2034 | CAGR of 17.3% |
The North American buy now pay later market is fast evolving as another mode of payment where consumers can split a purchase into several installments, often without interest. The likes of Affirm, Afterpay, Klarna, and PayPal Pay Later have dominated the market. The Affirm installment plan is longer in duration, while Afterpay was the original "pay in 4" method. Klarna will finance you interest-free or on longer terms, whereas PayPal does a buy now pay later push on the strength of its large user base. Fintech innovations lie at the heart of buy now pay later growth as these companies provide seamless integration with online retailers and fast approvals. However, in all fairness, buy now pay later has some risks, such as encouraging overspending and accumulation of debt because they do not feature in credit reports. As this grows, the landscape can expect increased regulation and consumer education.
Buy Now, Pay Later services are facing a plethora of risks in the form of bad debt and credit risk, threatening the financial health of consumers as well as the sustainability of providers. Bonafide risks include defaults. Such defaults are undesirable because providers are said to have allowed almost instant credit with minimal checks on the creditworthiness of the concerned buyer, who may consequently never repay. The buyers can overstretch themselves, clamping on unmanageable debts in their downward spiral. Sometimes late payments result in increased penalties, adding to their financial pressures. Credit risk is created when an individual defaults on payments, adversely affecting their credit ratings, thus reducing their credit access and discouraging adoption by the more cautious investors. A large proportion of BNPL solutions are, in fact, not reporting to credit bureaus, thereby increasing systemic risk in the lending ecosystem. It also poses a third-party risk to such financial institutions.
There is an incredible chance for innovations in payment solutions to dramatically elevate consumer convenience and retail growth within the Buy Now, Pay Later arena. BNPL has introduced newer-flexible payment methods, installment plans, or delayed payments to serve as an alternative to conventional ways of granting credit. Such features enable the expansion of financial inclusion and act as markers for the present trend in budgeting preferences. Customer gratification and sheer loyalty at the buy now pay later companies' end are strengthened by satisfying the needs of an array of financial requirements. As digital commerce gains momentum, such innovations ensure that BNPLs serve as a growth force within the worldwide payment ecosystem. This opportunity can be framed contextually within a region or industry, such as e-commerce, retail, and emerging markets.
The platform/solution segment underwent notable growth in the market during 2024. Leading the market of buy now pay later is the platform/solution segment selling marketing tools and promotional strategies, and performing analytics to promote buy now pay later offerings. Using data analytics and ML, platform providers allow buy now pay later services to conduct personalized marketing, identify trends, and improve conversion rates. It needs to do risk management since sophisticated mechanisms are employed for fraud detection, credit risk modeling, and compliance.
The online segment experienced significant expansion in the market. In the buy now, pay later market, the online segment owns a lion's share along with the soaring fame of the mobile commerce industry. Essentially, BNPL offerings are digital platform-friendly, catering to the needs of those shopping via their mobile and tablet. Retailers provide BNPL options over several online channels to increase convenience for the end-users.
The small ticket item segment saw strong growth during the studied period. Small-ticket purchases dominate the buy now pay later opportunities, with everyday essentials or incidental purchases being treated as cost-sharing purchases. This payment option thus particularly appeals to consumers in search of temporary financial relief or those who wish to avoid upfront payment obligations.
The business-driven segment showed substantial gains in the market. The highest attraction in the ecosystem was a business-driven model whereby merchants integrate buy now pay later solutions in their payment systems to woo a wider customer base, improve checkout conversion, and grease the wheels for higher purchase sizes.
The electronics segment showed noteworthy growth in the market. Since consumer electronics come with their price tags, the buy now pay later sector under the electronics umbrella enjoys dominance, which would also retain huge growth for the fashion industry, considering the offered flexible payment options and promotional discounts. Such a structure of adoption would strongly testify that BNPL's interventions have significant potential to propel sales and generate customer engagement in multiple product categories.
| Stats ID: | 8333 |
| Format: | Databook |
| Published: | May 2025 |
| Delivery: | Immediate |
| Stats ID: | 8333 |
| Format: | Databook |
| Published: | May 2025 |
| Delivery: | Immediate |
Download
Actionable Solutions
