Report Overview

United States Buy Now Pay Later (BNPL) Market – Industry Trends & Forecast Report, 2031

United States Buy Now Pay Later (BNPL) Market size was estimated at USD 65 billion in 2024. During the forecast period between 2025 and 2031, United States Buy Now Pay Later (BNPL) Market size is projected to grow at a CAGR of 15.81% reaching a value of USD 181.6 billion by 2031. The Buy Now Pay Later (BNPL) Market is driven by several key factors, including the increasing penetration of e-commerce, demand for financial flexibility, a tech-savvy consumer base, and strategic retail partnerships. The appeal of interest-free financing and enhanced user experiences has led to greater consumer adoption. Additionally, heightened awareness through marketing efforts and integration with digital wallets have further propelled market growth. Shifts in consumer spending patterns, especially among younger demographics, have also contributed to the expansion of BNPL services.

Buy Now Pay Later (BNPL) – Overview

Buy Now, Pay Later (BNPL) is a flexible financing option that allows consumers to purchase goods or services immediately and pay for them in installments over time, often without interest. Popular among online shoppers, BNPL services are offered by companies like Klarna, Afterpay, and Affirm. This payment method enhances affordability, boosts merchant sales, and appeals to budget-conscious consumers. However, it also raises concerns about overspending and debt accumulation. BNPL is rapidly growing, particularly in e-commerce and retail sectors worldwide.

United States Buy Now Pay Later (BNPL) Market

Growth Drivers

Expansion of E-commerce Platforms

The rapid expansion of e-commerce platforms is a key driver of United States Buy Now Pay Later (BNPL) Market, as online retailers increasingly integrate flexible payment options to enhance consumer purchasing power. Major platforms like Amazon and Shopify have partnered with BNPL providers to attract budget-conscious shoppers, boosting conversion rates and average order values. Fashion and electronics retailers also leverage BNPL to cater to younger consumers seeking affordability without upfront financial strain, driving further market growth.

Challenges

Competition from Traditional Credit Options

United States Buy Now Pay Later (BNPL) Market faces strong competition from traditional credit options such as credit cards and personal loans. Established financial institutions offer credit cards with reward programs, cashback, and flexible repayment terms, making them attractive alternatives. For instance, Visa and Mastercard-backed credit cards often provide 0% interest introductory periods, similar to BNPL. Additionally, personal loans from banks like JPMorgan Chase and Wells Fargo offer structured repayment plans with fixed interest rates, ensuring financial predictability. Consumers with good credit scores may prefer these traditional options due to their widespread acceptance and credibility, limiting BNPL’s market penetration.

Impact of Escalating Geopolitical Tensions on United States Buy Now Pay Later (BNPL) Market

Escalating geopolitical tensions could adversely affect the growth of United States Buy Now Pay Later (BNPL) Market through economic uncertainties, supply chain disruptions, and higher inflation. Market volatility leads to stricter lending regulations and higher interest rates, increasing BNPL providers' operational costs. Consumer confidence declines, reducing discretionary spending and BNPL adoption. Currency fluctuations affect cross-border BNPL transactions, impacting global expansion plans. Regulatory scrutiny may intensify as governments tighten financial policies. Additionally, geopolitical instability can disrupt fintech funding and investor confidence, slowing BNPL sector growth. Overall, tensions create a challenging environment for BNPL firms, forcing them to adjust risk models and adapt to evolving market conditions.

United States Buy Now Pay Later (BNPL) Market

Segmental Coverage

United States Buy Now Pay Later (BNPL) Market – By Product Type

By product type, United States Buy Now Pay Later (BNPL) Market is divided into Point of Sale (POS) Financing and Installment Loans segments. The Point of Sale (POS) financing segment is a larger product type in United States Buy Now Pay Later (BNPL) (BNPL) Market. This segment focuses on offering BNPL services directly at the checkout in both physical stores and online platforms, providing customers with flexible payment plans and enhancing their shopping experience. The integration of BNPL options at the POS has led to increased sales volumes and higher average transaction values for retailers.

United States Buy Now Pay Later (BNPL) Market – By Distribution Channel

By Distribution Channel, United States Buy Now Pay Later (BNPL) Market is divided into Online and In-Store segments. The online segment has experienced significant growth in United States Buy Now Pay Later (BNPL) Market. This surge is driven by increased consumer demand for flexible payment options during online shopping. While in-store BNPL services are also expanding, the online segment currently leads the market due to the rapid growth of e-commerce and the seamless integration of BNPL options at online checkouts.

United States Buy Now Pay Later (BNPL) Market – By Provider

On the basis of provider, United States Buy Now Pay Later (BNPL) Market is divided into Banks, Fintech Companies, and Retailers segments. Fintech companies represent the largest in United States Buy Now Pay Later (BNPL) (BNPL) Market. Leading providers such as Affirm, Afterpay (owned by Block, Inc.), and Klarna, have established strong partnerships with major retailers, integrating BNPL options at checkout and expanding their services across various sectors, including travel, electronics, and fashion. This widespread adoption has propelled fintech companies to the forefront of the BNPL industry, particularly among younger consumers seeking flexible financing options.

United States Buy Now Pay Later (BNPL) Market – By Industry Vertical

United States Buy Now Pay Later (BNPL) Market by industry vertical is divided into Retail, Healthcare, Travel & Leisure, and Automotive segments. The retail segment holds the largest share of United States Buy Now Pay Later (BNPL) Market by industry vertical. This dominance is attributed to consumers increasingly using BNPL services for purchasing everyday goods and services at retail outlets. The convenience and flexibility offered by BNPL options have made them particularly popular in the retail sector, leading to its significant market position.

Competitive Landscape

Major companies operating in United States Buy Now Pay Later (BNPL) Market include Affirm, Afterpay, Klarna, PayPal, Sezzle, Splitit, Zip, Perpay, Quadpay, Uplift, and Sunbit. To further enhance their market share, these companies employ various strategies, including mergers and acquisitions, partnerships, joint ventures, license agreements, and new product launches.

Scope of the Report

By Product Type 

• Point of Sale (POS) Financing

• Installment Loans

By Distribution Channel

• Online

• In-Store

By Provider

• Banks

• Fintech Companies

• Retailers

By Industry Vertical

• Retail

• Healthcare

• Travel & Leisure

• Automotive

1. Research Framework
   1. Research Objective
   2. Product Overview
   3. Market Segmentation
2. Executive Summary
3. United States Buy Now Pay Later (BNPL) Market Insights
   1. Industry Value Chain Analysis
   2. DROC Analysis
      1. Drivers
         1. Expansion of E-commerce Platforms
         2. Increasing Consumer Demand for Flexible Payment Options
         3. Technological Advancements in Fintech
      2. Restraints
         1. Regulatory and Compliance Issues
         2. High Consumer Debt Risk
         3. Competition from Traditional Credit Options
      3. Opportunities
         1. Integration with Digital Wallets and Mobile Payments
         2. Strategic Partnerships with Major Retailers
      4. Challenges
         1. Managing Credit Risk and Default Rates
         2. Ensuring Data Privacy and Security
   3. Technological Advancements/Recent Developments
   4. Regulatory Framework
   5. Porter’s Five Forces Analysis
      1. Bargaining Power of Suppliers
      2. Bargaining Power of Buyers
      3. Threat of New Entrants
      4. Threat of Substitutes
      5. Intensity of Rivalry
4. United States Buy Now Pay Later (BNPL) Market: Marketing Strategies
5. United States Buy Now Pay Later (BNPL) Market: Pricing Analysis
6. United States Buy Now Pay Later (BNPL) Market Overview
   1. Market Size & Forecast, 2019–2031
      1. By Value (USD Billion)
   2. Market Share & Forecast
      1. By Product Type 
         1. Point of Sale (POS) Financing
         2. Installment Loans
      2. By Distribution Channel
         1. Online
         2. In-Store
      3. By Provider
         1. Banks
         2. Fintech Companies
         3. Retailers
      4. By Industry Vertical
         1. Retail
         2. Healthcare
         3. Travel & Leisure
         4. Automotive
7. Competitive Landscape
   1. List of Key Players and Their Offerings
   2. United States Buy Now Pay Later (BNPL) Market Share Analysis, 2024
      1. 1. Competitive Benchmarking, By Operating Parameters

7. 3. Key Strategic Developments (Mergers, Acquisitions, Partnerships)
8. Impact of Escalating Geopolitical Tensions on United States Buy Now Pay Later (BNPL) Market
9. Company Profiles (Company Overview, Financial Matrix, Competitive Landscape, Key Personnel, Key Competitors, Contact Address, Strategic Outlook, SWOT Analysis)
   1. Affirm
   2. Afterpay
   3. Klarna
   4. PayPal
   5. Sezzle
   6. Splitit
   7. Zip
   8. Perpay
   9. Quadpay
   10. Uplift
   11. Sunbit
10. Key Strategic Recommendations
11. Research Methodology
    1. Qualitative Research
       1. Primary & Secondary Research
    2. Quantitative Research
    3.  Market Breakdown & Data Triangulation
       1.  Secondary Research
       2.  Primary Research
    4.  Breakdown of Primary Research Respondents, By Region
    5.  Assumptions & Limitations

*Financial information of non-listed companies can be provided as per availability.

**The segmentation and the companies are subject to modifications based on in-depth secondary research for the final deliverable.

List of Figures

Figure 1       United States Buy Now Pay Later (BNPL) Segmentation                       

Figure 2       United States Buy Now Pay Later (BNPL) Market Value Chain Analysis           

Figure 3       Company Market Share Analysis, 2024                  

Figure 4       United States Buy Now Pay Later (BNPL) Market Size, By Value (USD Billion), 2019–2031                    

Figure 5       United States Buy Now Pay Later (BNPL) Market Share, By Product Type, By Value, 2019–2031                    

Figure 6       United States Buy Now Pay Later (BNPL) Market Share, By Provider, By Value, 2019–2031                                                 

Figure 7       United States Buy Now Pay Later (BNPL) Market Share, By Industry Vertical, By Value, 2019–2031

Figure 8       United States Buy Now Pay Later (BNPL) Market Share, By Distribution Channel, By Value, 2019–2031

Figure 9       United States Buy Now Pay Later (BNPL) Market Share, By Product Type, By Value, 2019–2031

List of Tables

Table 1         United States Buy Now Pay Later (BNPL) Market Size, By Value (USD Billion), 2019–2031

Table 2         United States Buy Now Pay Later (BNPL) Market Share, By Product Type, By Value, 2019–2031                    

Table 3         United States Buy Now Pay Later (BNPL) Market Share, By Provider, By Value, 2019–2031                                                 

Table 4         United States Buy Now Pay Later (BNPL) Market Share, By Industry Vertical, By Value, 2019–2031

Table 5         United States Buy Now Pay Later (BNPL) Market Share, By Distribution Channel, By Value, 2019–2031

Table 6         United States Buy Now Pay Later (BNPL) Market Share, By Product Type, By Value, 2019–2031

Table 7         Affirm Company Overview

Table 8         Affirm Financial Overview

Table 9         Afterpay Company Overview

Table 10       Afterpay Financial Overview

Table 11       Klarna Company Overview

Table 12       Klarna Financial Overview

Table 13       PayPal Company Overview

Table 14       PayPal Financial Overview

Table 15       Sezzle Company Overview

Table 16       Sezzle Financial Overview

Table 17       Splitit Company Overview

Table 18       Splitit Financial Overview

Table 19       Zip Company Overview

Table 20       Zip Financial Overview

Table 21       Perpay Company Overview

Table 22       Perpay Financial Overview

Table 23       Quadpay Company Overview

Table 24       Quadpay Financial Overview

Table 25       Uplift Company Overview

Table 26       Uplift Financial Overview

Table 27       Sunbit Company Overview

Table 28       Sunbit Financial Overview