Buy Now, Pay Later: Point of Sale Installment Loans in the US Market and International Perspectives, 4th Edition
This Buy Now, Pay Later: Point of Sale Installment Loans in the US Market and International Perspectives, 4th Edition research report offers an in-depth analysis of the opportunities and challenges faced by both existing and new players in the BNPL sector. It explores the macro and micro factors influencing transaction volumes, repayment rates, and the impact of stringent government regulations that could potentially force pure play fintech companies out of this already low-margin industry.
Furthermore, the report examines current borrowing behaviors of US consumers and the strategic positioning efforts of fintechs and traditional consumer credit entities, including banks, finance companies, credit unions, credit card issuers, and credit/debit card networks.
The report also evaluates the main business models within the industry, assessing the potential sustainability of each model as new competitors enter the market with their unique marketing strategies, merchant partnerships, and revenue models.
Additionally, the report provides data on the growth rate of the US BNPL market from 2017 to 2022, along with total and annual forecasts through 2028.
Executive Summary
Scope & Methodology
Scope of Report
Report Methodology
Executive Summary
Status of Consumer Payments Market
Table Revolving Consumer Credit Outstanding, 2020-2024 (in $ billions and % change)
Status of BNPL in the Payments Landscape
Robust 20% CAGR Projected for BNPL 2023- 2028
Table US BNPL Market: Estimated CAGR, 2017-2022 vs. 2023-2028 (percent)
Table US BNPL Market, 2023-2028 ($ billions and percent growth)
Trends and Opportunities
Banks
Merchants
Fintechs
Robust and Frictionless Digital Strategy Is Essential
Diverse Strategies Based on Credit Segmentation
Market Size and Growth
Context for Market Performance
Table Annual Growth of Revolving and Non-revolving Credit, 2019-2024 ($ billion)
Retail Sales
Household Economics Are Driving Payments Industry
Table Share of Payment Instrument Use by Household Income, October 2023 (percent)
More Consumers Use Card Payments Than Have a Bank Account
Consumers Feeling Financially Stressed Ignore at Least One Element of Finances
Optimizing Payment Choices
Strategic Considerations for Market Participants
Banks
Merchants
Fintechs
Robust and Frictionless Digital Strategy Is Essential
Consumers Research and Shop Via Mobile, Even if They Buy In-Store
Table Mobile is the Lead Channel for E-commerce in the US, 2021 - 2023, Q2 2024 (percent)
Emphasis on Responsible Lending
Diverse Strategies Based on Credit Segmentation
Accelerating BNPL Growth
The Morphing of Installment Loans
US Industry Context
The Consumer Credit Market Before BNPL Installment Finance
Finance Companies and Credit Card/Store Card Lines of Credit
The Opportunity That Created BNPL Finance
BNPL Loans Turned Small Dollar Consumer Finance on Its Head
Consumers' Receptive to New Ways to Buying and Paying for Purchases
The Backstory of BNPL
E-Commerce Growth Fueled Merchant Need for Differentiation and Competitive Advantages
BNPL Financing Upstreamed in E-Commerce to Larger Market
BNPL Financing in the US
Industry Outlook
Moving Forward: Robust 20% CAGR Projected for 2023-2028
Table US BNPL Market, CAGR 2017-2022 and Projections 2023-2028
Table US BNPL Market, Projections 2023-2028 ($ billions and % change)
Rationale for BNPL Projection to 2028
Table E-commerce as a Percentage of Retail Sales, 2019-2024 ($ millions and percent)
Key Growth Drivers
New Market Niches, New Player Strategies All Contribute to Growth
Fintechs Leverage Consumer Payments to Build Customer Relationships
New Strategies from Traditional Financial Institutions
BNPL Shopper Rewards
Key Competitive Challenges
Challenges Dictated by Player's Role in Payment Transaction
Payment Friction
Paying Users to Make BNPL More Valuable
Regulatory Oversight: BNPL Business Models Invite Scrutiny
Competition Pressures Prices
Uses of BNPL Installment Moved from Smaller Ticket to Larger Ticket Items
Consumers Appreciate BNPL as Separate Line of Credit from Their Credit Cards
The US BNPL Customer
Convenience Drives Use of BNPL
Consumers Value Ability to Spread Out Payments
Table Top Reasons for Using BNPL Loans, 2023 (percent)
Table Family Income, Education and Race/Ethnicity of BNPL Users, 2024 (percent)
BNPL Awareness Tracks Increase in Usage
Overall Usage and Key Cohorts
Table How Gen Z and Millennial Shoppers Use BNPL, 2023 (percent)
What Buy Now, Pay Later Products Are Consumers Buying?