United Kingdom Buy Now Pay Later Business and Investment Opportunities – 75+ KPIs on Buy Now Pay Later Trends by End-Use Sectors, Operational KPIs, Market Share, Retail Product Dynamics, and Consumer Demographics - Q1 2022 Update

United Kingdom Buy Now Pay Later Business and Investment Opportunities – 75+ KPIs on Buy Now Pay Later Trends by End-Use Sectors, Operational KPIs, Market Share, Retail Product Dynamics, and Consumer Demographics - Q1 2022 Update

Report Description

According to PayNXT360’s Q4 2021 BNPL Survey, BNPL payment in the United Kingdom is expected to grow by 50.5% on annual basis to reach US$ 29906.2 million in 2022.

Medium to long term growth story of BNPL industry in the United Kingdom remains strong. The BNPL payment adoption is expected to grow steadily over the forecast period, recording a CAGR of 24.5% during 2022-2028. The BNPL Gross Merchandise Value in the country will increase from US$ 19866.2 million in 2021 to reach US$ 111545.3 million by 2028.

In the United Kingdom, the buy now, pay later (BNPL) payment method has increased substantially since the onset of the pandemic. Besides pureplay BNPL providers such as Klarna and Afterpay, leading retailers and banks were also introduced BNPL products to expand their market share. For instance, in December 2021, Amazon joined forces with Barclays to introduce ‘Installments’, a BNPL service in the United Kingdom.

The popularity of the BNPL payment method is also getting support from a large number of fashion brands and retailers who are now offering the payment method both online as well as for in-store purchases. Despite the growing scrutiny around BNPL, PayNXT360 expects the trend to continue from the short to medium-term perspective, which will further support the growth of the deferred payment industry in the country.

Traditional banks are forging a strategic partnership with online retailers to launch BNPL products in the United Kingdom

To push into the booming BNPL market of the United Kingdom, traditional banking firms are forging strategic alliances with online retailers in the country. For instance,

• In December 2021, Barclays announced that the firm had entered into a strategic collaboration with Amazon to launch a new BNPL product for online shoppers in the country. The BNPL service, known as Instalments, will allow Amazon shoppers the option to spread the cost of their purchases over multiple installments.
• The launch of the product came at a time when more than 15 million consumers across the country had the split payment service. Notably, Barclays and Amazon also partnered to launch a similar BNPL product for consumers in Germany.

As the payment method continues to gain more ground among young shoppers in the country, PayNXT360 expects more traditional banking firms to build strategic alliances with online and offline retailers in the country over the next four to eight quarters.

Fintech startups are entering the BNPL market with niche product offerings

The exponential growth of the BNPL firms has been one of the biggest fintech trends over the last four to eight quarters. With the sector expected to continue its robust growth, new fintech players are jumping on the BNPL bandwagon in the United Kingdom. For instance,

• In December 2021, PollenPay, the British BNPL startup, announced the launch of its deferred payment services for consumers in the country. Unlike other existing BNPL firms, PollenPay offers consumers a responsible approach to BNPL transactions. It allows consumers to amend payment schedules if they fall into financial hardship. According to PollenPay, the new BNPL scheme has gained interest from various retailers across the country.

As the popularity of the BNPL schemes continues to grow among consumers and merchants across the country, PayNXT360 expects more new players to enter the BNPL market in the United Kingdom over the next four to eight quarters.

BNPL firms are moving into the digital gift card segment to capitalize on the rising demand in the United Kingdom

The digital gift card segment is another fast-growing vertical globally. As the demand for gift cards continues to rise quarter-on-quarter, BNPL firms are looking to capitalize on the opportunity to further accelerate their growth in the United Kingdom. For instance,

• In December 2021, Zilch, the United Kingdom-based BNPL provider, announced the launch of its gift card program for consumers. Notably, the firm will allow its 1.4 million users to shop for multi-use digital gift cards directly from the BNPL platform. With the global gift card sales expected to grow nearly 8.3% year-over-year, the launch of gift cards will allow the firm to further boost its growth over the next four to eight quarters.
• The gift cards by Zilch can be bought, sent, and spent entirely online. Consumers can also add gift cards to their Apple Wallet. Moreover, with the firm expected to roll out its BNPL services in the United States in 2022, the gift card solution will allow Zilch to gain more market share in the world’s largest retail market for gift cards.

Scope

This report provides in-depth, data-centric analysis of Buy Now Pay Later industry in United Kingdom. Below is a summary of key market segments:
United Kingdom BNPL Market Size and Spending Pattern
• Gross Merchandise Value Trend Analysis
• Average Value Per Transaction Trend Analysis
• Transaction Volume Trend Analysis
United Kingdom Buy Now Pay Later Operational KPIs
• Buy Now Pay Later Revenues, 2019 – 2028
• Buy Now Pay Later Share by Revenue Segments
• Buy Now Pay Later Merchant Commission, 2019 – 2028
• Buy Now Pay Later Missed Payment Fee Revenue, 2019 – 2028
• Buy Now Pay Later Pay Now & Other Income, 2019 – 2028
• Buy Now Pay Later Accounts, 2019 – 2028
• Buy Now Pay Later Bad Debt, 2019 – 2028
United Kingdom Buy Now Pay Later Market Share Analysis by Key Players
United Kingdom Buy Now Pay Later Spend Analysis by Channel: Market Size and Forecast
• Online Channel
• POS Channel
United Kingdom Buy Now Pay Later in Retail Shopping: Market Size and Forecast
• Gross Merchandise Value Trend Analysis
• Average Value Per Transaction Trend Analysis
• Transaction Volume Trend Analysis
United Kingdom Buy Now Pay Later in Home Improvement: Market Size and Forecast
• Gross Merchandise Value Trend Analysis
• Average Value Per Transaction Trend Analysis
• Transaction Volume Trend Analysis
United Kingdom Buy Now Pay Later in Leisure & Entertainment: Market Size and Forecast
• Gross Merchandise Value Trend Analysis
• Average Value Per Transaction Trend Analysis
• Transaction Volume Trend Analysis
United Kingdom Buy Now Pay Later in Healthcare and Wellness: Market Size and Forecast
• Gross Merchandise Value Trend Analysis
• Average Value Per Transaction Trend Analysis
• Transaction Volume Trend Analysis
United Kingdom Buy Now Pay Later in Other: Market Size and Forecast
• Gross Merchandise Value Trend Analysis
• Average Value Per Transaction Trend Analysis
• Transaction Volume Trend Analysis
United Kingdom Buy Now Pay Later Analysis by Consumer Attitude and Behaviour
• Buy Now Pay Later Sales Uplift by Product Category
• Buy Now Pay Later Spend Share by Age Group
• Buy Now Pay Later Gross Merchandise Share by Income
• Buy Now Pay Later Gross Merchandise Value Share by Gender
• Buy Now Pay Later Adoption Rationale Gross Merchandise Value Analysis

Reasons to buy

• In-depth Understanding of Buy Now Pay Later Market Dynamics: Understand market opportunities and key trends along with forecast (2019-2028). Understand market dynamics through essential KPIs such as Gross Merchandise Value, Volume, and Average Value Per Transaction.

• Insights into Opportunity by end-use sectors – Get market dynamics by end-use sectors to assess emerging opportunity across various end-use sectors.

• Develop Market Specific Strategies: Identify growth segments and target specific opportunities to formulate BNPL strategy; assess market specific key trends, drivers, and risks in the BNPL industry.

• Get Insights into Consumer Attitude and Behaviour: Drawing from proprietary survey results, this report identifies and interprets key Buy Now Pay Later KPIs, including spend by age, gender, and income level.

• Market Share by Key Players