Buy Now Pay Later (BNPL) Market Size – By Channel, By Payment Type, By Business Model, By Service Provider Enterprise Size, By Age Group, By End use Industry, Forecast, 2025 – 2034

Buy Now Pay Later Market Size

The global buy now pay later (BNPL) market size was valued at USD 235 billion in 2024 and is estimated to grow at 21.2% CAGR from 2025 to 2034. The expanding e-commerce sector in the B2B and B2C environments across the globe is a key factor for the growth of the market.
 

The increase in B2B and B2C e-commerce has led to growth in the BNPL market. According to the International Trade Administration (ITA), B2B e-commerce is projected to reach a value of USD 36 trillion by 2026 and B2C e-commerce market is expected to reach a value of USD 5.5 trillion by the year 2027. With the growing online shopping, customers are adopting BNPL services and, thus the market is witnessing significant expansion.
 

The rising consumer demand for flexible payments marks the rising growth of BNPL services. According to the study commissioned by VALUECOM highlights that the consumers, specifically the younger generation, give more preferences to the flexible payment options which allow them to manage their finances. The streamlined approval process of BNPL services provides greater accessibility as compared to traditional credit cards due to its minimal credit checks. The BNPL market is growing as it allows the consumers to make larger purchases and improve financial flexibility.
 

Companies should focus on enhancing user experience by offering hastle-free integration with e-commerce platforms and improving credit risk assessment models. Expanding BNPL solutions in B2B transactions can unlock untapped opportunities, especially with the surge in B2B e-commerce. Additionally, targeting younger consumers who prefer flexible payment options drives further adoption of BNPL services.
 

Buy Now Pay Later (BNPL) method allows the customers to make purchases with interest free installments instead of paying the amount instantly at the checkout. It involves merchants, customers and BNPL platform. The platform pays the full amount to the merchant and takes the customer’s credit risk. Customers make the payment of the first installment to the platform and the amount that is left is paid in weekly installments.
 

Buy Now Pay Later Market Trends

• With technological advancements there is introduction of more simplified payments with customized installments plans. The embedded BNPL in digital wallets offers seamless user-friendly experience and gaining popularity across the market. For instance, in March 2025, Splitit came in partnership with Highnote to integrate BNPL solutions into digital wallets. The collaboration aims to clear the payments of merchants and allow customers to split payments over time. This ensures security in digital transactions and provides flexibility in payments.
   
• The rising adoption of BNPL is gaining momentum in the buy now pay later market as consumers are seeking solutions for the financial constraints. According to PYMNTS Intelligence, the consumers with frequent cash flow problems are 3.5 times more likely to use BNPL. The budget conscious consumers are thus finding it easy to purchase items and pay later.
   

Buy Now Pay Later Market Analysis

Based on channel, the buy now pay later market is divided into online and Point of Sale (POS).
 

• The online market in BNPL was valued at USD 172.3 billion in 2024. The increasing e-commerce and wider acceptance of the digital payments through online mode across the regions reflects the growth of the BNPL market by online channel. For instance, pay in 4 from PayPal is an installment-free loan that splits the purchases into 4 payments. The repayments are made online and thus reflects the growth of the market.
   
• Point of Sale (POS) market in BNPL is anticipated to grow at a CAGR of 25.5% in the forecast period. The retailers are providing its customers the flexibility to split the payments at the POS terminal which leads to the growth of the market.
   

Based on payment type, the market is bifurcated into interest-free BNPL and interest-based BNPL.
 

• The interest-free BNPL market is expected to grow at a CAGR of 23% in the forecast period. The interest-free payments attract the consumers to optimize flexible payments for their purchases. The companies are collaborating to provide interest-free BNPL to its consumers. For instance, in November 2024, Klarna made partnership with Lenovo to expand the interest-free payment option. The agreement between the companies enabled flexible payment methods in 15 European countries.
   
• The interest-based BNPL segment is projected to grow and reach a value of USD 414.7 billion by 2034. The market finds potential growth where the ticket prices are high. The interest-based payment type appeals to the customer who are involved in larger planned purchases.
   

Based on business model, the buy now pay later market is bifurcated into B2C (Business-to-Consumer) BNPL and B2B (Business-to-Business) BNPL.
 

• B2C (Business-to-Consumer) segment is anticipated to grow at a CAGR of 22% in the forecast period. The rising consumer preferences for interest-free flexible installment payments has led to increasing BNPL services in the B2C sector. It is expanding beyond e-commerce in brick-and-mortar retail, which is leading to the growth of the business-to-consumers market in BNPL.
   
• B2B (Business-to-Business) BNPL segment is expected to grow and reach a value of USD 207.3 billion by the year 2034. As the deferred payment options in the B2B environment are increasing, it is creating opportunities for the BNPL market to expand. The rising partnerships among companies to provide flexible payment solutions to large businesses reflect the trend of B2B BNPL. In January 2023, Santander, Allianz Trade and e-commerce platform called Two launched BNPL solutions to cater to the large business in the B2B e-commerce field. It enables the corporation to provide commercial customers with deferred payment options at the checkout.
   

Based on service provider enterprise size, the buy now pay later market is segmented into Small & Medium Enterprises (SMEs) and large enterprises.
 

• The Small & Medium Enterprises (SMEs) market was valued at USD 86.2 billion in the year 2024. The SMEs are adopting BNPL services as businesses are seeking alternative financing solutions to enhance cash flow. The rise of digital payment solutions is a key factor that reflects the growth of SMEs in the BNPL market.
   
• The large enterprise market is expected to grow and reach a value of USD 839 billion by the year 2034. As the lager enterprises seek greater financial agility, there is growing integration of the BNPL in the market. Companies are forming strategies to retain the customers base by forming partnership with the BNPL service providers to ensure flexible payment.
   

Based on age group, the market is divided into 18–27, 28–43, 44–59 and 60+.
 

• The age group 18–27 in the BNPL market is expected to grow at a CAGR of 23.4% in the forecast period. The Gen Z and younger millennials focus on digital payments and seek alternative to credit cards payments. This has led to the shift among the age group of 18-27 to the BNPL services as it allows them for interest-free installments options, ease of access and the seamless integration with digital wallet.
   
• By 2034, the age group 28–43 in the market is anticipated to grow and reach a value of USD 742.6 billion. The age group is embracing the shift towards BNPL and leveraging the budgeting flexibility for high value purchases such as home appliances, furniture, and electronics.
   

Based on end use industry, the buy now pay later market is divided into retail & e-commerce, consumer electronics, healthcare, travel & tourism, leisure & entertainment, automotive, education and others.
 

• Retail & e-commerce market was valued at USD 150.8 billion in the year 2024. Retail & e-commerce market is growing due to rising consumer demand for flexible payment options and increased preferences for digital transactions. The merchants and retailers are collaborating with BNPL partners to provide customer with flexible payment options. This also helps retailers and e-commerce sectors to increase the average value of the order.
   
• Travel & Tourism market is projected to grow at a CAGR of 23.5% in the forecast period. The rise in demand for travel and tourism among the people is leading to the growth of the market. The travelers are leveraging the BNPL services to book the travel tickets which helps them manage their cash flow.
   

• In 2024, the U.S. buy now pay later (BNPL) market was valued at USD 65.2 billion. The BNPL market is growing in U.S. owing to the evolving consumer preferences and increasing partnership by the BNPL service providers and merchants. For instance, in May 2024, PPRO announced its partnership with BNPL provider Afterpay. The collaboration helped e-commerce merchants in U.S. to offer Afterpay as an alternative payment option.
   
• The Buy Now Pay Later market in UK is anticipated to grow and reach a value of USD 54.5 billion by 2034. The country is embracing the changing preferences of the consumers for payments. Affirm launched its BNPL services in the UK market in November 2024, reflecting the growth of the BNPL in UK.
   
• The Chinese Buy Now Pay Later (BNPL) market was valued at USD 21.3 billion in the year 2024. The market is experiencing significant growth due to growing integration of BNPL services into the country’s major platforms such as Alipay (Huabei) and WeChat Pay (Fen Fu). The increasing consumer preferences for flexible payment marks the appropriate condition for growth of the market.
   
• The BNPL market in India is expected to grow at a CAGR of 23.9% in the forecast period. With the growing digital payment adoption in India, there is growth of BNPL services. E-commerce and quick commerce are leveraging technology and bringing in flexible payment solutions. For instance, in September 2024, quick commerce, Zepto announced the launch of its BNPL which is currently promoted through its app. The service enables consumers to make purchases with the flexibility of interest-free payments.
   
• The Buy Now Pay Later (BNPL) market in Japan is anticipated to grow at a CAGR of 22.6% in the forecast period. The market of BNPL is growing in Japan owing to the active participation of the fintech companies. For instance, in January 2023, Japan fintech, Smartpay corporation launched it BNPL service which allows customers to pay for goods online in instalments directly from their bank accounts.
   
• The market for Buy Now Pay Later (BNPL) in South Korea is expected to grow at a CAGR of 22.2% in the forecast period. With the rise in merchant’s adoption and integration of BNPL, the country is witnessing potential growth in the market.
   

Buy Now Pay Later Market Share

The Buy Now Pay Later (BNPL) industry is driven by intense competition with players in the market developing quicker payment solutions through QR codes. The top 5 companies in the Buy Now Pay Later (BNPL) market are Klarna, Afterpay, PayPal, Affirm Inc., Zip Co Limited and they together constitute a market share of 52% in 2024. The companies are diversifying their BNPL services and focussing on lending and compliance strategies to ensure growth.
 

The primary objective of market players focuses on providing the consumers with flexible payment options and increasing their presence at major retail chains. The companies are making partnerships to extend the BNPL services. For instance, in December 2024, Klarna and eBay formed partnership to provide the BNPL services to eBay buyers in the European market.
 

Buy Now Pay Later Market Companies

The top 5 companies operating in the Buy Now Pay Later (BNPL) industry include:

• Affirm, Inc.
• Klarna
• Afterpay
• PayPal
• Zip Co Limited
   

Klarna has a customer centric approach and provide diversified financial services. The company strategically allocates investments to expand its payment solutions. For instance, in January 2025, Klarna strengthened its merchant acquisition strategy with payment infrastructure provider, Stripe. This was done to expand the services to merchants across 25 countries.
 

Affirm explores offering BNPL solutions for businesses within the resale marketplace. The company focusses on strategically forming partnerships for growth in the BNPL marketplace. For instance, in March 2025, Affirm launched the BNPL partnership with Resale Marketplace StockX. Affirm’s flexible pay-over-time option gives the customer opportunity to shop according to their needs and desires.
 

Buy Now Pay Later Industry News:

• In March 2025, Starlink Qatar made collaboration with PayLater for the introduction of BNPL in all the Starlink stores across Qatar. The partnership aimed to provide the customers with flexible payment options with easier installments so that customers can shop according to their desires and requirements.
   
• In December 2024, equipifi and Synergent came into partnership, helping Synergent’s credit unions to launch their own BNPL programs through digital banking apps. This provides support in splitting larger purchases into flexible installment loans.
   
• In September 2024, Sunbit and Stripe joined hands through strategic collaboration to bring Sunbit’s solutions to a broader range of in-person service businesses. The agreement between the companies equips merchants processing payments on Stripe with Sunbit’s BNPL solution.
   

The buy now pay later (BNPL) market research report includes an in-depth coverage of the industry with estimates and forecast in terms of revenue in USD Million from 2021 – 2034 for the following segments:

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Market, By Channel

• Online
• Point of Sale (POS)

Market, By Payment Type

• B2C (Business-to-Consumer) BNPL
• B2B (Business-to-Business) BNPL

Market, By Service Provider Enterprise Size

• Small & Medium Enterprises (SMEs)
• Large enterprises

Market, By Age Group

• 18–27
• 28–43
• 44–59
• 60+

Market, By End Use Industry

• Retail & e-commerce
• Consumer electronics
• Healthcare
• Travel & tourism
• Leisure & entertainment
• Automotive
• Education
• Others

The above information is provided for the following regions and countries:

• North America 
  • U.S.
  • Canada
• Europe 
  • Germany
  • UK
  • France
  • Spain
  • Italy
  • Netherlands
• Asia Pacific 
  • China
  • India
  • Japan
  • Australia
  • South Korea
• Latin America 
  • Brazil
  • Mexico
  • Argentina 
• Middle East and Africa
  • Saudi Arabia
  • South Africa
  • UAE