United States 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 States 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 14.8% on an annual basis to reach US$109,004.6 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 9.5% during 2024-2029. The BNPL gross merchandise value in the country will increase from US$94,946.2 million in 2023 to reach US$171,596.5 million by 2029.The United States BNPL industry is growing at an accelerated rate, on the back of rising adoption and usage among consumers. This trend is expected to continue further in 2024, as shoppers are leveraging installment payment options to fund their purchases amid higher inflation. The rising popularity of the payment method means that more players are entering the market with their BNPL products.

Key Developments in the BNPL Sector in USA
The Buy Now Pay Later (BNPL) sector in the USA has seen significant growth and innovation. Here are the key developments:

Product Launches and Innovations

Sunbit - which focuses on providing pay-over-time options for unexpected expenses like auto repairs and vet care, secured a $310 million warehouse debt facility in January 2024. This funding is expected to enhance its service offerings and merchant partnerships.
Affirm - has continued to expand its partnerships and enhance its platform, maintaining its position as a leading BNPL provider. It allows customers to make purchases at various retailers with transparent payment plans and no hidden fees.
A pioneer in the buy now, pay later (BNPL) sector, Affirm is changing how consumers shop by providing flexible payment options. For example, you can split your purchase into interest-free instalments over a set period, typically from several weeks to months. Affirm makes this possible by acting as a financial intermediary between you and the retailer.

Strategic Partnerships

The Buy Now Pay Later (BNPL) market in the USA has seen several strategic partnerships aimed at enhancing service offerings and expanding market reach. Here are the key partnerships:
1. Google Pay announced strategic partnerships with Zip and Affirm to integrate BNPL payment options into its platform. This collaboration aims to provide users with flexible payment solutions directly through Google Pay, enhancing the overall shopping experience for consumers.
2. PPRO, a leading local payments platform, partnered with Afterpay to launch a new BNPL solution tailored for the US market. This partnership focuses on providing consumers with more flexible payment options, thereby enhancing the shopping experience across various retail sectors.

Regulatory Changes

The BNPL sector in the USA is under increased regulatory scrutiny, with potential new rules expected to enhance consumer protection and transparency. Providers will need to adapt to these changes and emphasize consumer education and responsible lending practices to maintain consumer trust.
Consumer Financial Protection Bureau (CFPB) Oversight: The CFPB has been actively investigating the BNPL industry, focusing on consumer protection issues. A report released in early 2024 highlighted concerns about inconsistent consumer protections, the potential for debt accumulation, and privacy risks associated with BNPL services. Although no specific regulations have been implemented yet, the CFPB's findings indicate a push towards establishing clearer guidelines for BNPL providers.

The BNPL payment industry in United States 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.