US Buy Now Pay later Services Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)

US Buy Now Pay Later Services Market Analysis

The United States Buy Now Pay Later Services Market has achieved a market size of 70 billion USD in terms of payment value for the current year and is poised to grow at a CAGR of 27.5% for the forecast period.

Share of the young generation using BNPL had observed a continuous increase in 2021-22 as compared to 2020 with around 61% of people in the age group (18-24) using BNPL services and it is highest among all other groups showing a positive trend for BNPL market in the United States.

BNPL creates an economic model by adding a new layer to credit schemes. BNPL companies listed in the stock market of different countries are observing an increase in stock price. Mostly, BNPL is a method of spreading out the payment for a short period and is done over purchases made from retailers. Synchrony, Affirm, and Afterpay are a few companies leading the market by providing private credit in several merchant stores. For better financial management, BNPL spreads out the cost of purchase and provides its service by looking over borrower ability to pay, and merchants play a major role in finding these customers.

With the COVID-19 outbreak, most businesses had to shut down to prevent the spread of the virus. With an increasing number of people losing their jobs, resulting in a decline in disposable incomes, BNPL services created an opportunity for people to continue buying the necessary products even after losing their purchasing power. People without access to credit cards or with a poor credit history were also able to buy through BNPL, thus boosting the revenue of online channels and merchants.

With the increasing use of the BNPL option, the availability of other options such as credit cards, and the increasing credit and funding costs, competition in the market is continuously increasing. For BNPL, delinquency rate is observing a continuous increase, which had almost doubled post the pandemic compared to a credit card, which had an almost flat delinquency rate. However, consumers in the United States are adopting the BNPL method to continue their purchases.

US Buy Now Pay Later Services Market Trends

This section covers the major market trends shaping the US Buy Now Pay Later Services Market according to our research experts:

Income of US Households Affecting the BNPL Market

US Buy Now Pay Later Services Industry Segmentation

With people continuously wanting to purchase more products and the rising fluctuations in the economy, BNPL is becoming an ideal financial solution that allows people to make purchases without paying all at once. In the United States, which has the most fintech companies and start-ups, the competition is continuously increasing for these financial payment systems. The US Buy Now Pay Later Services Market is Segmented by Channel (Online and POS) and by Product Category (Kitchen Appliances, Other Consumer Electronics, Fashion and Personal Care, Healthcare, and Other Product Categories). The report offers market size and forecast values for the US Buy Now Pay Later Services Market in USD billion for the above segments.