Buy Now Pay Later Statistics By User Demographics, Market Size, Payment Methods and BNPL App
Updated · Sep 25, 2024
WHAT WE HAVE ON THIS PAGE
- Introduction
- Editor’s Choice
- Explosive Growth:
- Market Size and Dollars
- General Buy Now Pay Later Statistics
- Who’s Using BNPL?
- Buy Now Pay Later User Statistics
- By User Demographics
- By Market Size
- Buy Now Pay Later Segmental Statistics
- Buy Now Pay Later Statistics in Asia Pacific
- Market Statistics By Region
- Consumer Share Statistics of Purchasing Accessories
- Retail E-commerce Statistics By Payment Methods
- Penetration Rate of Statistics By Country
- The Popularity of BNPL Providers
- By BNPL App
- Reasons For Using BNPL Services
- Beyond The U.S.: Global BNPL Trends
- Conclusion
Introduction
Buy Now Pay Later Statistics: Have you ever wanted something but hesitated because you couldn’t afford the full price upfront? Buy Now, Pay Later (BNPL) services are increasingly popular, offering a way to split your purchases into smaller payments. This article includes current trends and analyses of Buy Now Pay Later from 2023 and 2024, along with insights and detailed information that will guide you beneficially. But how big is this trend, and who’s using it? Let’s dive into some interesting BNPL statistics.
Editor’s Choice
- The BNPL market is projected to grow to USD 37.19 billion in 2024.
- The number of global BNPL users is expected to exceed 380 million, marking a 107% increase.
- The total BNPL market could reach around USD 500 billion by the end of 2024.
- A significant user base, 18 to 34 years old, dominates the BNPL market.
- Sweden is noted as having the largest BNPL market in 2024.
- Clothing items are the most purchased products through BNPL services.
- About 50% of U.S. consumers show interest in using BNPL options for their purchases.
- Credit card usage stands at 21%. If U.S. banks integrate BNPL with credit cards, the potential credit limits could range from USD 856 billion to USD 1.27 trillion by 2025.
- In the U.S., 22% of online shoppers use BNPL services, which is approximately 1 in 5 shoppers.
- The retail e-commerce market involving BNPL is forecasted to grow by 53% in 2024, becoming the second-largest market share after digital wallets and mobile payments.
Explosive Growth:
The BNPL market is booming! In 2022, an estimated 360 million people worldwide used these services. That’s a massive number, and it is expected to keep growing. By 2027, experts predict there will be a whopping 900 million BNPL users—a 157% increase! This explosive growth reflects how convenient and accessible BNPL has become.
Market Size and Dollars
The BNPL market is also growing in terms of cold and hard cash. In 2020, the market was valued at $87.2 billion. That’s a significant amount of money being spent through BNPL services. By 2030, the market is forecast to reach a staggering $3.27 trillion. This shows the immense potential of BNPL and its growing role in the financial landscape.
General Buy Now Pay Later Statistics
- The BNPL market will grow by around $37.19 billion in 2024 and reach around $167.58 billion by 2032.
- The growth rate of the global BNPL market will grow by 20.7% from 2024 to 2032.
- Buy Now Pay Later Statistics show that in 2024, BNPL’s total transactional value will be $334 billion and is supposed to reach above $687 billion by 2028. The market will grow by 105% from 2024 to 2028.
- In 2024, the maximum number of BNPL users belonged to the United States of America, representing more than 79 million US-based users, up by 56.1% from last year.
- Almost 60% of people have tried to use the services of Buy Now and Pay Later, but only 46% can apply successfully and are currently making payments via BNPL.
- In 2024, the U.S. BNPL is leading with a reach of more than $100 billion.
- Globally, 66% of people still believe that using BNPL services can be financially risky.
- By the end of 2027, the global total of BNPL users is estimated to grow by 157%, accounting for 900 million.
- Based on gender, men’s and women’s BNPL user share are 14% and 20%, respectively.
Who’s Using BNPL?
The latest data suggests that the U.S. has a large share of BNPL users. Around 35% of Americans have tried BNPL at least once, and that number is growing rapidly. This trend is likely due to the ease of use and the convenience of spreading out payments, especially for younger generations who might be just starting financially.
Interestingly, BNPL use isn’t limited to just one demographic. Studies show that:
- Millennials and Gen Z are leading the charge. These younger generations are more comfortable with digital financial tools and are embracing BNPL for its flexibility.
- Women are slightly more likely to use BNPL: Statistics show that 20% of women use BNPL compared to 14% of men.
- Renters are more frequent users: There’s a correlation between renters and BNPL usage, with 22% of BNPL users being renters compared to 15% of homeowners.
Buy Now Pay Later User Statistics
- Buy Now Pay Later shows that in the United States of America, the total number of BNPL users in 2023 was 88.2 million, a growth rate of 11.7% from the previous year.
- The BNPL user count is estimated to be 94.4 million in 2024, with a growth rate of 7.1%.
- In coming years, the total number of U.S. BNPL users will be 99.7 million (2025), with 5.6% user change, and 104.6 million users (2026), with 4.9% user change.
By User Demographics
(Reference: buttercms.com)
- In 2023, Gen Z was the maximum user of BNPL services, holding a share of 46.5%, followed by Millennials with 39.5%.
- Besides, Gen X and Bay Boomers BNPL users accounted for 26.3% and 12% share, respectively.
- By 2025, generation-wise user share of Buy Now Pay Later services will be Gen Z (47.4%), Millennials (40.6%), Gen X (30.9%), and Baby Boomers (14.8%).
By Age Group
(Source: demandsage.com)
- In the United States of America, 50% of online users aged 25 to 34 had used the Buy Now Pay Later payment option in 2023.
- Similarly, the other 50% of U.S. users of BNPL were between 35 and 44 years old.
- In addition, the other segments of American people using BPNL by age group are 18 to 24 (42%), 45 to 54 (33%), and 55 years and above (19%).
By Gender Usage
- Buy Now Pay Later Statistics, around 11% of female and 9% of male users used BPNL more than 5 times in 2024.
- Meanwhile, 18% (female users) and 17% (male users) captured 1 to 5 times BPNL usage.
- Whereas the number of male and female users who have not used it but will do so in 2024 is 26% and 28%, respectively.
- Never used BNPL services and did not want to use them make up a gender share: male (48%) and female (43%).
By Ethnicity
- Across the world, in the case of using Buy Now Pay Later, 63% of Black consumers are more likely to use BPNL than white consumers.
- A 24% user share of BNPL was captured by Black people in 2023.
- On the other hand, usage of BNPL by ethnicity share was made by Hispanics (24%) and whites (16%).
By Market Size
(Reference: oberlo.com)
- As of 2023, the largest market size of the global Buy Now Pay Later was estimated at $71.93 billion, with an annual growth rate of 12.3% from last year in the United States of America.
- Furthermore, in the coming years, the market size of BNPL services will be $80.77 billion in 2024.
- In coming years, the market size and growth rate of BNPL include 2025 ($97.25 billion and 20.4%), 2026 ($111.55 billion and 14.75), and 2027 ($124.82 billion and 11.9%).
Buy Now Pay Later Segmental Statistics
- As stated in Buy Now Pay Later Statistics, the largest revenue share obtained by the platform/solution segment was around 66.95% in 2023.
- In the global buy now pay later market, among purchase ticket size, the small ticket item segment made up the largest revenue share of 43.01% worldwide.
- Based on the business model, the business-driven segment captured the largest revenue share, 71.14%, in the global market of BNPL services.
- On the other hand, the revenue share accounted for by the online segment and electronics segment, with 82.45% and 36%, respectively, in 2023.
Buy Now Pay Later Statistics in Asia Pacific
(Reference: precedenceresearch.com)
- In 2023, the Asia Pacific region had the biggest revenue share, 36.17%, in the Buy Now Pay Later market, resulting in $5.72 billion.
- The market size of BNPL services will reach around $28.94 billion by 2033, with a CAGR of 17.59% from 2024 to 2033.
- Moreover, the market size of Asia Pacific’s BNPL services predicted in coming years is 2024 ($7 billion), 2025 ($8.56 billion), 2026 ($10.49 billion), 2027 ($12.86 billion), 2028 ($15.79 billion), 2029 ($18.34 billion), 2030 ($20.99 billion), 2031 ($23.64 billion), 2032 ($26.29 billion).
Market Statistics By Region
(Reference: precedenceresearch.com)
- Globally, the market share of the Asia Pacific region had the biggest revenue share, 36.17%, resulting in $5,724.14 million in 2023.
- On the other hand, the second and third largest market share and market valuation amounted to North American and European regions with 26.73% ($4,230.89 million) and 22.41% ($3,547.56 million), respectively.
- In addition, the Middle East and Africa (9.62% and $1,523,46 million) and Latin America (5.07% and $798.42 million) lead the market share and valuation of other regions.
By Country
- According to Buy Now Pay Later Statistics, in the United States of America, the market size of BNPL was $3384.46 million in 2023.
- Furthermore, in Canada, the market size was $846.43 million.
- As of 2023, China’s highest market valuation in the Asia Pacific region was $1,964.47 million.
- Other countries with BNPL’s market size in 2023 were Japan ($1229.70 million), South Korea ($741.33 million), and India ($890.94 million).
By Mode
(Reference: precedenceresearch.com)
- In the 2023 Buy Now Pay Later market, the online segment achieved a dominant share of 82.45%.
- Offline segment share made up 17.55% worldwide.
- The market valuation of an online and offline segment of BNPL was $13,046.21 million and 42,778.28 million.
- In 2023, nearly 6.4% was accounted for by the transactions with the Buy Now Pay Later on the first day of the Amazon Prime Day Sale.
By Vertical
(Reference: precedenceresearch.com)
- According to Buy Now Pay Later statistics, based on the vertical segment of BNPL services, the electronics segment obtained the highest share of 36% in 2023, with a market valuation of $5,697.73 million.
- The second-highest vertical segment was captured by Fashion, with 30.91% ($4,891.83 million).
- In 2023, the Home and Furniture Segment had a share of 24.24%, resulting in $3,837.03 million.
- The market share and valuation for other vertical segments of BNPL services were 8.85% ($1,397.88 million).
(Reference: demandsage.com)
- As mentioned in Buy Now Pay Later Statistics, 46% of consumers purchased clothing, shoes, and accessories through the BNPL service in the first quarter of 2024.
- 34% of consumers purchased home decor, furniture, or appliances, and 27% purchased technology devices.
- Other consumer share of purchased items with the help of BNPL are beauty and hair products (26%), groceries (21%), events like concerts, sports games, and more (18%), sporting and fitness equipment (16%), toys (13%), dining out (13%), travel (11%), and other (5%).
Retail E-commerce Statistics By Payment Methods
(Source: paymentscardsandmobile.com)
- Buy Now Pay Later Statistics depict that in 2023, the market value of e-commerce retail will continue to reach up to 53%, resulting in $5.758 trillion.
- In 2024, digital and mobile wallets had a share of 51.7% in the Global e-commerce payment method segment.
- Meanwhile, the Buy Now Pay Later sector is predicted to have a 4.2% share and will become more prominent in the coming years.
- Other e-commerce Payment Methods are followed by Credit Cards (20.8%), Debit Cards (12%), Bank Transfers (5.3%), Cash on Delivery (1.7%), Direct Debit (1.0%), Prepaid Cards (0.5%), Postpay (0.5%), Prepay (0.2%), and other (0.4%).
- Moreover, the e-commerce industry’s market size is expected to reach over $1.869 billion, with a 69.7% increase by 2024.
Penetration Rate of Statistics By Country
(Reference: statista.com)
- A report published by Statista stated that the global market share or penetration rate in BPNL for domestic e-commerce payments was 5% in 2023.
- The top three countries with the highest penetration rate of BNPL were Sweden (21%), Germany (21%), and Norway (15%).
- However, other countries with a market share of Buy Now Pay Later are Australia (15%), Belgium (13%), Finland (13%), Denmark (12%), the Netherlands (11%), New Zealand (11%), the United Kingdom (7%), Italy (6%), and Canada (5%).
The Popularity of BNPL Providers
Just like any industry, BNPL has its major players. Here’s a glimpse at how some of the top providers stack up in the U.S.:
- PayPal: The granddaddy of online payments offers its own BNPL option called “Pay in 4.” Statistics show that a whopping 68% of BNPL users in the U.S. have used PayPal’s service in the past year, making it the clear leader.
- Afterpay: This Australian-based company is a major force in the BNPL world. Afterpay comes second; 25.9% of US BNPL users have used their service in the past year.
- Affirm and Klarna: These two providers are neck-and-neck, with 21.9% and 21.5% of US BNPL users having used their services, respectively.
By BNPL App
(Source: demandsage.com)
- In 2024, nearly 57% of consumers used Paypal Credit, the most popular BNPL App, followed by Afterpay, which had a 29% share.
- The next popular consumer share of the BNPL App includes Affirm, Klarna, and Zip Pay accounts, which have a share of 28%, 23%, and 19%, respectively.
- Furthermore, other BNPL App shares in 2024 are QuadPay (15%), Uplift (13%), PerPay (11%), Sezzle (8%), Zebit (6%), and Splitit (6%).
Reasons For Using BNPL Services
(Source: demandsage.com)
- Buy Now Pay Later Statistics elaborated that BNPL services are more convenient for usage or ease of use, claimed by 46% of global people in 2024.
- Other top reasons consumers prefer BNPL services are flexibility in budgeting (44%), zero interest (41%), and flexibility in repayments (40%).
Beyond The U.S.: Global BNPL Trends
The U.S. might be a big BNPL market, but it’s not the only one. Here are some interesting global trends:
- Northwestern Europe leads the way: When it comes to BNPL use as a share of e-commerce transactions, Northwestern Europe takes the crown. This could be due to the region’s tech-savvy population and established online shopping habits.
- India’s rising stars: Though India’s overall BNPL market share is still smaller than that of the U.S. or Europe, it’s growing rapidly. Millions of Indians are now using BNPL services, Particularly for electronics and smartphones.
The Benefits and Risks of BNPL
While BNPL offers convenience and flexibility, it’s important to be aware of both the benefits and risks.
Benefits:
- Spread out payments: BNPL allows you to manage your budget better by breaking down larger purchases into smaller, more manageable chunks.
- No upfront costs: Unlike credit cards, BNPL often doesn’t charge interest upfront (as long as you make your payments on time).
- Can help build credit: Some BNPL providers report your payment history to credit bureaus, which can help you build a good credit score if you use the service responsibly.
Risks:
- Overspending temptation: The ease of using BNPL can lead to impulse purchases and potential debt problems if you are not careful with your budget.
- Late fees: Missing BNPL payments can result in hefty late fees, adding to your overall cost.
- Not universally accepted: Not all stores or online retailers accept BNPL payments, so it’s important to check before you rely on them at checkout.
The Future of BNPL
Looking ahead, the BNPL market will continue its meteoric rise. Here are some predictions for the future:
- Regulation: As BNPL becomes more mainstream, governments around the world are likely to introduce regulations to ensure consumer protection and prevent potential debt traps.
- Innovation: Expect to see even more innovation in the BNPL space, with new features and services emerging to cater to different consumer needs.
- Competition: The BNPL market is likely to see increased competition between existing providers and new entrants, which could benefit consumers with better deals and features.
Conclusion
Overall, BNPL is a rapidly growing financial tool with both advantages and disadvantages. By understanding the trends, stats, and potential pitfalls, you can make informed decisions about whether BNPL is right for you and leverage it responsibly to manage your finances effectively.
Sources
FAQ.
If a payment is missed to repay the amount, BPNL services charge users late fees.
Credit risk is seen in the cycle of high debt with increasing interest rates. Younger and less
educated people face the most higher credit risk.
A user must set a clear budget to compare BNPL with other payment options, avoid
using BNPL for impulse spending, monitor spending and payment deadlines, limit the
number of BNPL plans, and understand what one is getting into with BNPL.
Maitrayee, after completing her graduation in Electrical Engineering, transitioned into the world of writing following a series of technical roles. She specializes in technology and Artificial Intelligence, bringing her experience as an Academic Research Analyst and Freelance Writer, with a focus on education and healthcare under the Australian system. From an early age, writing and painting have been her passions, leading her to pursue a full-time career in writing. In addition to her professional endeavors, Maitrayee also manages a YouTube channel dedicated to cooking.
