United Kingdom 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 2024 Update

United Kingdom 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 2024 Update

According to PayNXT360, BNPL payments in the country are expected to grow by 15.0% on an annual basis to reach US$34,280.2 million in 2024.

The medium to long-term growth story of the BNPL industry in the country remains strong. BNPL payment adoption is expected to grow steadily over the forecast period, recording a CAGR of 9.8% during 2024-2029. The BNPL gross merchandise value in the country will increase from US$29,805.0 million in 2023 to reach US$54,629.7 million by 2029.Amid the cost-of-living crisis, an ever-increasing number of Britons are turning to buy now pay later schemes to pay their bills. The trend is projected to continue further over the medium term. This will support the growth of the BNPL industry in the United Kingdom in 2024. To tap into the rising demand, providers are also launching new products to boost revenue and business growth.

Key Developments in the BNPL Sector in United Kingdom
The UK's BNPL sector has seen significant growth due to rising consumer demand. Here are the key trends and product developments:

Product Launches and Innovations

Flava's BNPL Option: Flava, an online grocery store, has introduced a BNPL payment option aimed at helping struggling families manage their grocery expenses. This move signifies a diversification in the categories of products available for BNPL, extending beyond traditional retail to essential items like groceries.
Around the world, grocers are exploring buy now, pay later (BNPL) capabilities to offer instalment options to consumers struggling with inflation.
In the United Kingdom, for instance, BNPL is getting one step closer to making its way into grocery stores. Klarna announced a partnership with British supermarket giant Sainsbury’s to provide split payments via the retailer’s Argos, Habitat and TU eCommerce platforms.

Strategic Partnerships

Klarna and Airbnb: Klarna has partnered with Airbnb to allow travellers in the UK to use BNPL for their bookings. This collaboration enables customers to pay for reservations priced between £35 and £4,000 over time, expanding Klarna's reach into the travel sector and providing consumers with more flexible payment options for travel expenses

Mergers and Acquisitions

Klarna's Acquisitions: Klarna has actively pursued acquisitions to enhance its service offerings. This includes acquiring technology firms that can improve its payment solutions and customer experience, although specific details on the companies acquired were not disclosed in the recent reports.

Regulatory Changes

The UK's regulatory landscape for Buy Now Pay Later (BNPL) services has seen significant developments, with comprehensive regulations still pending. Here are the key updates and government policies:
Draft Legislation Delays: The UK Treasury announced a delay in implementation draft legislation intended to regulate BNPL products. This postponement has been attributed to discussions with the BNPL industry, which expressed concerns about the potential impact of stringent regulations on their operations. The government aims to avoid overly heavy-handed regulation that could drive providers out of the market.
Concerns Over Consumer Debt: The regulatory focus has been partly driven by concerns over rising consumer debt levels associated with BNPL usage. Reports indicate that many number of BNPL customers have faced arrears, highlighting the need for effective regulation to protect consumers from falling into debt traps.
Implementation of Consumer Duty Rules: In July 2023, the Financial Conduct Authority (FCA) implemented its Consumer Duty rules, which require BNPL firms to act responsibly and transparently towards customers. This regulation aims to ensure that consumers are fully informed about the risks associated with BNPL products, helping to protect vulnerable customers from accumulating debt.

The BNPL payment industry in United Kingdom has recorded strong growth over the last four quarters, supported by increased e-commerce penetration.

This report provides a detailed data-centric analysis of the Buy Now Pay Later (BNPL) industry, covering market opportunities and risks across a range of retail categories. With over 75 KPIs at the country level, this report provides a comprehensive understanding of BNPL market dynamics, market size and forecast, and market share statistics.

It breaks down market opportunities by type of business model, sales channels (offline and online), and distribution models. In addition, it provides a snapshot of consumer behaviour and retail spending dynamics. KPIs in both value and volume terms help in getting an in-depth understanding of end market dynamics.

PayNXT360’s research methodology is based on industry best practices. Its unbiased analysis leverages a proprietary analytics platform to offer a detailed view of emerging business and investment market opportunities.