Buy Now Pay Later Platform Market Demand, Overview, Size, Trend, and Key Players
The buy now pay later platform market revenue totaled ~US$ 5.2 Bn in 2020, according to Future Market Insights (FMI). The overall market is expected to reach ~US$ 46.9 Bn by 2031, growing at a CAGR of 22.4% for 2021 – 31.
The report also forecasts that the market will surpass a valuation of ~US$ 6.2 Bn by the end of 2021. As per FMI, presence of application programming interface (APIs) and rapid technological advancements have created ample opportunities for buy now pay later platforms. These technologies have become essential in improving economic competitiveness, thereby propelling the market growth.
Over the past few years, buy now pay later platforms have been witnessing a dramatic increase in popularity among e-Commerce retailers and their customers. This phenomenon was triggered by the COVID-19 consequences and it seems like the buy now pay later platforms industry will continue to develop even in the post-pandemic times. The reasons for this are simple – BNPL is a convenient and cheaper way to get instant loans for buying goods online.
Moreover, strong growth of the e-commerce sector helped startups and fintech giants to establish their footprint in the BNPL platform space across geographies. The growing popularity of credit among consumers has even forced traditional banking players to venture into the BNPL space.
For instance, in order to attract non-credit card users, conventional banking players in various countries have added buy now pay laterplatform offerings to their existing set of financial products.
“The rising number of BNPL providers is playing a key role in changing the buying behaviors and general outlook on traditional methods of credit. By providing a manageable way for consumers to borrow and repay with the interest (where applicable), built into the repayment plan with fixed-end date, BNPL providers are giving them more assurance that they can repay without falling into a revolving credit repayment” says FMI analyst.