DUBLIN--(BUSINESS WIRE)--The "United States Buy Now Pay Later Business and Investment Opportunities Databook - 75+ KPIs on BNPL Market Size, End-Use Sectors, Market Share, Product Analysis, Business Model, Demographics - Q2 2023 Update" report has been added to ResearchAndMarkets.com's offering.
The Buy Now Pay Later (BNPL) landscape in the United States is poised for significant growth, with a projected annual increase of 51.6% in payments to reach US$2,133.0 million in 2023.
This robust growth trend is expected to continue over the medium to long term, showcasing the industry's resilience and potential. Anticipating steady adoption, the BNPL sector is forecasted to achieve a compelling compound annual growth rate (CAGR) of 31.3% between 2023 and 2028. This growth trajectory is set to elevate the BNPL Gross Merchandise Value from US$1,406.7 million in 2022 to a remarkable US$8,311.0 million by 2028.
This growth is underpinned by the increasing ecommerce penetration that has propelled the industry's success over the past year. Amidst this promising growth, the BNPL sector is not without its challenges. While facing scrutiny from both investors and regulators, BNPL providers are striving to demonstrate profitability and navigate a competitive landscape, all while expanding their merchant and customer base.
As the industry adapts to evolving market dynamics, the forthcoming holiday season is expected to further bolster BNPL transactions, reflecting the industry's potential for value and volume growth in the short term.
Affirm and PayPal reports strong operational numbers amid the rising turbulence for the BNPL industry
The macroeconomic factors have had a severe impact on the financial performance of BNPL firms in the United States. The rising interest environment and declining consumer sentiment mean a slower growth period for businesses. However, Affirm and PayPal have continued to post strong operational numbers in the sector.
For Affirm, the gross merchandise value surged 62% year over year in Q3 2022. Furthermore, the number of active customers increased to 14.7 million, reporting a growth of 69% year over year, while active merchants surged 140% to reach 245,000. With the BNPL service offered by Affirm approaching 2% of the e-commerce spending in the United States, the numbers are not bad by any means in the current macroeconomic environment.
Improving product features, controlling operating expenses, focusing on unit economics, and managing credit performance are among the strategies that have allowed the firm to report strong numbers in Q3 2022. The strong performance in the quarter, coupled with the strong fundamentals of the firm, shows that the BNPL model can turn profitable in the long term.
PayPal, another leader in the BNPL segment, reported a strong set of numbers in Q3 2022. With nearly US$5 billion in volume, PayPal achieved a growth of 157% year over year, making the firm market leader during the quarter. The strong merchant network of 280,000 and ever-expanding active customer base of over 25 million has allowed the firm to report strong numbers in Q3 2022.
The growing merchant base and active customer numbers are among the key factors that have backed the strong performance of both Affirm and PayPal. Going forward, Affirm is also seeking to boost its presence in the offline market to further accelerate its growth. Consequently, other firms can also adopt similar strategies while building a path to profitability in the United States.
BNPL providers are forging strategic alliances to drive their BNPL transaction volume and value
To achieve their growth objectives and drive profitability, BNPL firms are seeking to expand their merchant base, and consequently are forging strategic alliances with businesses across industry verticals.
In November 2022, Sezzle, the United States-based BNPL provider, announced that the firm had entered into a strategic alliance with Bankful, a payment gateway. Through strategic collaboration, Sezzle will enable the BNPL payment method for Bankful's merchants around the world. Currently, the firm has a merchant network of 48700, which includes leading brands such as Target, GameStop, and Shop Adorn, among others.
In November 2022, Uplift and Emirates also forged an alliance to offer BNPL payment capabilities to their customers in the United States and Canada. The partnership comes at a time when travel activities have recorded a strong rebound after the slump caused by the global pandemic outbreak. With travelers seeking flexible payment options, more such strategic collaborations are expected in the United States market.
As competition intensifies and regulatory and investor scrutiny grows, the publisher expects BNPL firms to focus on increasing their merchant and customer base from the short to medium-term perspective. This will subsequently drive their transaction volume and value in the United States.
Black Friday and Cyber Monday sales have driven consumer BNPL spending in the United States
With prices rising and inflation soaring to new highs, more consumers have turned to BNPL solutions to afford their holiday shopping in the United States. These trends have become largely evident from the usage of BNPL services during Black Friday and Cyber Monday sales events.
As inflationary pressures persist, the publisher expects more consumers to continue adopting BNPL services in the United States during the year-end Christmas gift-giving season in the United States. While this is expected to drive volume and value for players, it will also boost the possibility of higher delinquencies.
Scope
United States Buy Now Pay Later Market Share Analysis by Key Players
- Paypal
- Klarna
- Affirm
- Afterpay
- Futurepay
- Quadpay
- Sezzle
- Macy's
- Kafene
- Google Pay
- Sunbit
United States BNPL Market Size and Spending Pattern, 2019-2028
- Gross Merchandise Value Trend Analysis
- Average Value Per Transaction Trend Analysis
- Transaction Volume Trend Analysis
United States Buy Now Pay Later Revenue Analysis, 2019-2028
- Buy Now Pay Later Revenues
- Buy Now Pay Later Share by Revenue Segments
- Buy Now Pay Later Revenue by Merchant Commission
- Buy Now Pay Later Revenue by Missed Payment Fee Revenue
- Buy Now Pay Later Revenue by Pay Now & Other Income
United States Buy Now Pay Later Operational KPIs & Statistics, 2019-2028
- Buy Now Pay Later Active Consumer Base
- Buy Now Pay Later Bad Debt
United States BNPL by Purpose, 2019-2028
- Convenience - Short Term Loans
- Credit - Long Term Loans
United States BNPL by Business Model, 2019-2028
- Two-Party (BNPL offered by retailers)
- Three-Party BNPL Offering
United States BNPL by Merchant Ecosystem, 2019-2028
- Open Loop System
- Closed Loop System
United States BNPL by Distribution Model Analysis, 2019-2028
- Standalone
- Banks & Payment Service Providers
- Marketplaces
United States BNPL Analysis by Channel, 2019-2028
- Online Channel
- POS Channel
United States Buy Now Pay Later in Retail Shopping: Market Size and Forecast, 2019-2028
- Gross Merchandise Value Trend Analysis
- Average Value Per Transaction Trend Analysis
- Transaction Volume Trend Analysis
United States Buy Now Pay Later in Home Improvement: Market Size and Forecast, 2019-2028
- Gross Merchandise Value Trend Analysis
- Average Value Per Transaction Trend Analysis
- Transaction Volume Trend Analysis
United States Buy Now Pay Later in Travel/Entertainment: Market Size and Forecast, 2019-2028
- Gross Merchandise Value Trend Analysis
- Average Value per Transaction Trend Analysis
- Transaction Volume Trend Analysis
United States Buy Now Pay Later in Services: Market Size and Forecast, 2019-2028
- Gross Merchandise Value Trend Analysis
- Average Value Per Transaction Trend Analysis
- Transaction Volume Trend Analysis
United States Buy Now Pay Later in Automotive: Market Size and Forecast, 2019-2028
- Gross Merchandise Value Trend Analysis
- Average Value Per Transaction Trend Analysis
- Transaction Volume Trend Analysis
United States Buy Now Pay Later in Healthcare and Wellness: Market Size and Forecast, 2019-2028
- Gross Merchandise Value Trend Analysis
- Average Value Per Transaction Trend Analysis
- Transaction Volume Trend Analysis
United States Buy Now Pay Later in Groceries: Market Size and Forecast
- Gross Merchandise Value Trend Analysis
- Average Value Per Transaction Trend Analysis
- Transaction Volume Trend Analysis
United States Buy Now Pay Later Analysis by Consumer Attitude and Behaviour
- Sales Uplift by Product Category
- Share by Age Group
- Share by Income
- Share by Gender
- Adoption Rationale
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