United States 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 States 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 States is expected to grow by 66.5% on annual basis to reach US$ 82086.8 million in 2022.

Medium to long term growth story of BNPL industry in the United States remains strong. The BNPL payment adoption is expected to grow steadily over the forecast period, recording a CAGR of 32.5% during 2022-2028. The BNPL Gross Merchandise Value in the country will increase from US$ 49296.0 million in 2021 to reach US$ 443781.4 million by 2028.

Over the last four to eight quarters, the popularity of buy now, pay later (BNPL) products has surged significantly in the United States. The global pandemic and the growing need for splitting the cost of purchases over a period of time has led to widespread adoption of BNPL products such as the one offered by Klarna, Afterpay, Affirm, and PayPal in the country. Moreover, the growth in volumes for these BNPL providers has been driven in part by the boom in online shopping during the global pandemic.

Leading BNPL players are redesigning their products to increase market share in the United States

As the competition continues to intensify in the United States BNPL market, providers are innovating with their product offering to offer more flexibility and gain increasing traction from consumers. For instance,

• In November 2021, Afterpay, one of the leading BNPL platforms, announced that the firm would introduce installment payment options for subscriptions in the United States. The company stated that users could use BNPL on entertainment subscriptions, gym memberships, and online services. The firm is expected to roll out the service in early 2022, starting first in the United States and Australia.
• Some of the initial merchants that are expected to offer the service include IPSY, BoxyCharm, Savage X Fenty, and Fabletics, among others. Apart from paying for subscriptions, the firm is enabling its offering to be used for preordered items, where the consumer can pay in four installments once the product is shipped. As of November 2021, Afterpay has partnered with 100,000 retailers and has nearly 10.5 million active users on its platform in the North American region, which also happens to be the largest region in terms of underlying sales.

BNPL firms are building partnerships with retailers to boost in-store sales in the United States

To increase the total volume and transaction value of BNPL purchases, firms are entering into strategic partnerships with more retailers. These strategic partnerships are also allowing consumers to use the payment method at more online and offline stores in the country. For instance,

• In December 2021, Afterpay entered into a strategic partnership with Belk, the Southeastern regional departmental store. Under the collaboration, Belk will allow both online and in-store shoppers the ability to pay for their purchases using the Afterpay BNPL payment method. Since its alliance with Afterpay, Belk has also reported an increase of 50% in average order values for consumers using the payment method.
• Similarly, in August 2021, Affirm entered into a strategic alliance with Amazon in the United States to provide online shoppers with the ability to complete their purchases of US$50 or above using the BNPL payment method. Notably, the alliance with Affirm is the first strategic partnership for Amazon in the United States.

As the segment continues to record robust growth, PayNXT360 expects more such strategic alliances between retailers and BNPL platforms over the next four to eight quarters in the country.

Domestic BNPL players are focusing on global expansions

In the United States, several players are competing for market share. As a result, BNPL firms are entering into mergers and acquisition deals to drive further growth and to tap into other emerging markets globally. For instance,

• In September 2021, PayPal announced the acquisition of Japan-based leading BNPL platform Paidy. The US$2.7 billion acquisition will help PayPal to expand its capabilities, distribution, and relevance in the fastest-growing e-commerce market globally. Apart from Japan, the BNPL offering from PayPal is also available in markets such as Australia, the United Kingdom, and other European markets.
Apart from expanding global footprint, mergers and acquisition deals are also growing, as well-established businesses are looking to tap into the BNPL market. For instance,
• In August 2021, Square announced the acquisition of Afterpay to enter into one of the fastest-growing consumer payments markets. Notably, Square acquired Afterpay for a total of US$29 billion. This acquisition is expected to help Square in accelerating its growth in the United States as well as keeping up with PayPal, which has become a major player in the global BNPL segment.

Scope

This report provides in-depth, data-centric analysis of Buy Now Pay Later industry in United States. Below is a summary of key market segments:
United States BNPL Market Size and Spending Pattern
• Gross Merchandise Value Trend Analysis
• Average Value Per Transaction Trend Analysis
• Transaction Volume Trend Analysis
United States 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 States Buy Now Pay Later Market Share Analysis by Key Players
United States Buy Now Pay Later Spend Analysis by Channel: Market Size and Forecast
• Online Channel
• POS Channel
United States 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 States 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 States 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 States 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 States 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 States 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