Buy Now Pay Later (or BNPL) has become a popular mode of payment for eCommerce customers in recent years. The popularity of BNPL significantly grew during the pandemic, and it will only increase further in the coming years. According to the numbers presented by SafeBettingSites.com, the total transactional value of BNPL payments will grow by 78% in 2022.
Transactions worth $214 billion via BNPL in 2022
Buy Now Pay Later is still a relatively new payment method for most customers. Its reach among online customers is still developing in most countries; hence, the market presents massive room for growth.
According to the numbers available on Statista.com, the value of BNPL transactions is set to reach $214 billion in 2022. In comparison to $120 billion in 2021, the 2022 figure represents a 78% increase. Before this, the market had doubled in value in 2021 (from $60 billion in 2020 to $120 billion in 2021). The market will continue to thrive in the coming years.
In the next four years, after 2022, the market size is expected to more than double. According to the estimates, the annual BNPL transactional value will reach $576 billion by 2026. From 2021 to 2026, the BNPL market size is expected to grow at a CAGR of 36.8%.
Sweden with biggest BNPL reach at 25%
As things stand, Buy Now Pay Later is most prevalent in Nordic (or North Western European) countries. BNPL accounted for 25% of eCommerce transactions in Sweden in 2021. Klarna is the most popular BNPL service in Sweden currently. The Scandinavian country was followed by Germany (20%), Norway (18%), Finland (13%), and Denmark (12%).
The share of BNPL payments was only 3% of all global e-commerce transactions during the same year. Hence, one can conclude that BNPL still have a lot of room to grow in some major markets. For instance, the share of BNPL payments was just 4% in the United States and 3% in India. Furthermore, the countries where BNPL payments are currently popular are all developed economies.
BNPL payments allow customers to make payments later at zero (or with little interest). Hence, Buy Now Pay Later is particularly more attractive to lower and lower-middle-income demographics. One can expect the BNPL market size to grow significantly once these payment options become popular in developing economies.
