United States Buy Now Pay Later Market to Grow at a CAGR of 27.5% during Forecast Period
Published | 28 July 2022
United States Buy Now Pay Later Market is gaining significant traction owing to the affordable and convenient payment service of buy now pay later platforms, as well as the nationwide expansion of the e-commerce industry…
A recent study conducted by the strategic consulting and market research firm, BlueWeave Consulting, revealed that the United States Buy Now Pay Later Market is predicted to grow at a CAGR of 27.5%, by the end of 2028. The United States Buy Now Pay Later Market is booming because of the buy now pay later platforms' affordable and practical payment methods as well as the growth of the e-commerce market across the country. Also, younger customers favor using BNPL services since they may purchase expensive laptops and cellphones and make payments for stationery products, among other advantages. Moreover, businesses are forming strategic alliances with additional shops to enhance the overall volume and transaction value of BNPL transactions. Customers are now able to use the payment method at more physical and online retailers thanks to these strategic collaborations. Furthermore, United States Buy Now Pay Later Market is one of the most emerging markets that grow continuously owing to the fast integration of new technologies such as the Internet of Things (IoT), Artificial Intelligence (AI), cloud computing, and others. However, high late and returned payment fees, in turn, may act as a huge restraining factor for the market growth.
Growing Redesigning of Products by Leading BNPL Companies
As competition in the US BNPL market heats up, providers are innovating with their product offerings to provide more flexibility and gain traction with consumers. IPSY, BoxyCharm, Savage X Fenty, and Fabletics, among others, are expected to be among the first merchants to offer the service. Aside from subscription payments, the company is allowing its offering to be used for preordered items, with the consumer able to pay in four installments once the product is shipped. As of November 2021, Afterpay had partnered with 100,000 retailers and had nearly 10.5 million active users on its platform in North America.
Rising Partnerships between US BNPL Firms and Retailers to Boost In-Store Sales
Firms are forming strategic alliances with more retailers to increase the total volume and transaction value of BNPL purchases. These strategic alliances also enable consumers to use the payment method at more online and offline stores across the country. Afterpay will enter into a strategic partnership with Belk, the Southeastern regional department store, in December 2021. Belk will allow both online and in-store customers to pay for their purchases using the Afterpay BNPL payment method as part of the collaboration. Belk has also reported a 50% increase in average order values for customers who use the payment method since its partnership with Afterpay.
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Challenge: Consumer Illiteracy in Developing and Impoverished Regions
In poor and underdeveloped regions, the idea of "buy now, pay later" is not as popular. The buy now pay later platforms are being heavily promoted by the banking, financial services, and insurance (BFSI) organizations, but only in developed regions. To promote buy now pay later, the governments of developing and impoverished areas must launch advertising campaigns. Therefore, a major obstacle to the market's expansion is the lack of consumer awareness in developing and undeveloped regions.
Segmental Coverage
United States Buy Now Pay Later Market - By Channel
The Buy Now Pay Later Market in the United States is classified into three channels: online, point-of-sale, and others. Among these, the online segment has the largest share of the Buy Now Pay Later market in the United States. As a result of the COVID-19 epidemic, the use of online sales channels is rapidly expanding. As a result, the concept of "buy now, pay later" is popular in the online world. Monthly installments are available through buy now pay later options, allowing for practical purchases over time. Furthermore, the offline segment is expected to grow the fastest during the forecast period (2022-2028). Giving point of sale (POS) purchase now pay later financing options is a priority for many businesses across the country to improve customer experience and satisfaction.
Impact of COVID-19 on United States Buy Now Pay Later Market
The COVID-19 epidemic has resulted in better market conditions. Household incomes have decreased as a result of the global economic crisis, boosting the demand for liquidity. People are now at ease using a variety of online payment methods to make purchases online as a result of the pandemic. Furthermore, banks are frequently deterred from extending credit in tough economic times. In these circumstances, BNPL solutions help customers pay their invoices in installments. As a result, BNPL transactions have significantly increased during the COVID-19 pandemic.
Competitive Landscape
The leading market players in the United States Buy Now Pay Later Market are Sezzle, Klarna Bank AB, Afterpay, Laybuy Group Holdings Limited, PayPal, Perpay, Quadpay, Splitit, Payl8r, and other prominent players. The United States Buy Now Pay Later Market is highly fragmented with the presence of several manufacturing companies in the country. The market leaders retain their supremacy by spending on research and development, incorporating cutting-edge technology into their goods, and releasing upgraded items for customers. Various tactics, including strategic alliances, agreements, mergers, and partnerships, are used.
The in-depth analysis of the report provides information about growth potential, upcoming trends, and statistics of the United States Buy Now Pay Later Market. It also highlights the factors driving forecasts of total market size. The report promises to provide recent technology trends in the United States Buy Now Pay Later Market and industry insights to help decision-makers make sound strategic decisions. Furthermore, the report also analyzes the growth drivers, challenges, and competitive dynamics of the market.
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