Customers’ payment preference has shifted from credit to debit, which changed their shopping habits away from bulk credit card payments.
Zero-interest fees and flexible repayment plans are among the factors that customers consider when choosing a pay-later method. The buy now, pay later (BNPL) payment approach has emerged as an alternative credit payment—especially for younger consumers who often have a limited credit history and low credit scores. BNPL enables them to make purchases without paying the total amount upfront. This credit solution allows consumers to split payment into 3 or 4 installments over a period up to 2 months with no interest charged.

BNPL providers are emerging, primarily on the strength of their next-generation platforms and well-suited credit underwriting model that are designed to serve customers of various credit levels. Additionally, these platforms integrate seamlessly with a wide range of merchants across industry, size, and order value. This key factor will create more value for both consumers and merchants, drive repeat use of BNPL platforms, and consequently increase transaction value.

The global BNPL market experienced growth in 2021 and is on track to achieve a global transaction value of $656.34 billion in 2026, mainly driven by an increase in eCommerce transactions and the growing adoption of BNPL services among merchants and customers, especially in the North America and Europe. Additionally, an increase in funding for technology platforms and international market expansion in Asia-Pacific, particularly Australia, Japan, and India, will boost market growth.

This study covers the BNPL market in 4 key global regions: North and Latin America, Europe, Asia-Pacific, and Africa and Middle East. The study covers a market overview based on online and physical/in-store merchants, growth opportunities for players in the BNPL industry, and insights into key regional companies. Market forecast discussions and total transaction volume forecasts are based on the market’s growth drivers and restraints. The study period is 2020–2026 and forecast span 2022–2026 using a base year of 2021.

Author: Dewi Rengganis