30 Buy Now Pay Later (BNPL) Statistics for 2024 

Many are already acquainted with traditional installment purchases, but a timely financial innovation known as Buy Now Pay Later (BNPL) — instant approval point-of-sale loans — has surged in popularity. 

Since the COVID pandemic, BNPL has not only become increasingly favored among consumers and business owners but is also seen by many industry experts as a potential disruptor to traditional credit card usage.

Today, we’ll dive into 30 insightful statistics about Buy Now Pay Later (BNPL). Don’t miss this journey towards understanding the future of finance—keep reading!

Buy Now Pay Later (BNPL) Industry Size

Buy Now Pay Later (BNPL) first surfaced in the early 2010s as a solution to tackle the challenges associated with financing, such as the complexity and high fees of credit cards. Interestingly, as the financial landscape evolves and consumer behaviors shift, it has now become one of the primary payment methods today.

1. BNPL’s Global GMV was valued at $543.8 million in 2023. (Lafferty)

Back in 2020, this figure stood at just $87.2 billion. 

The ongoing COVID-19 pandemic has significantly impacted the global economy, prompting many to seek financial flexibility. This shift has propelled the BNPL sector to grow by over 500% since 2020. 

Looking ahead, predictions suggest a continued upward trajectory, with the market value expected to double by 2029, reaching $1,088 billion. By 2030, it’s forecasted to hit an impressive $3.27 trillion.

This rapid growth highlights how BNPL is becoming an increasingly popular option for consumers seeking manageable payment solutions amidst uncertain economic times.

2. There are 360 million BNPL users worldwide (Juniper Research)

As consumers and businesses increasingly turned to e-commerce for even basic needs like grocery shopping online, the demand for BNPL services surged. 

Looking ahead, projections suggest that the number of BNPL users globally is set to surpass 900 million by 2027. 

This remarkable growth of 157% is expected to be driven by the anticipated economic downturn, which will likely increase the demand for low-cost credit solutions like BNPL.

3. As of 2023, The global average for e-commerce payments made using BNPL is 5%. (Statista)

Notably, market leaders such as AfterPay, Klarna, and Affirm have emerged as dominant players in the global BNPL landscape. Meanwhile, PayPal holds dominance in the U.S. market. 

These BNPL leaders collectively totaled around $20.3 billion in annual Gross Merchandise Volume (GMV) in 2019. 

4. The fashion and apparel sector held the largest market share of the buy now pay later industry at 43% of global revenue. (Skyquestt)

A pivotal development reinforcing this trend was the announcement in October 2021 by Affirm, Inc., one of the leading Buy Now Pay Later companies, of its partnership with the custom clothing site Theory. 

This collaboration aims to offer clients interest-free payments on a range of products including accessories and sportswear. 

By enabling more accessible and flexible payment options, these initiatives are poised to attract a broader consumer base, thereby fostering expansion and greater penetration of BNPL solutions in the market.

5. US BNPL’s market size is predicted to reach $9.20 billion in 2030. (Demandsage)

As of 2022, the BNPL market in the US was valued at $1.64 billion, showcasing a significant appetite for flexible payment solutions among American consumers. 

Financial professionals, at the same time, continue to anticipate robust growth, projecting a Compound Annual Growth Rate (CAGR) of 24.3% between 2023 and 2030. 

Buy Now Pay Later (BNPL) Adoption and Usage Statistics 

In addition to the United States, consumers of all ages worldwide are increasingly embracing Buy Now Pay Later (BNPL) services. This widespread adoption reflects a global trend towards more flexible and convenient payment options.

1. Sweden has the largest market share in the BNPL market. (Worldpay)

North-Western Europeans are at the forefront of the Buy Now, Pay Later (BNPL) market, with Germany and Norway securing the second and third spots, respectively. 

The top 10 global BNPL market shares are predominantly held by these regions, with Australia and New Zealand being the notable exceptions. 

2. 20% of BNPL users live in the US. (Insider Intelligence)

As of 2022, the North American BNPL sector was projected to achieve a Compound Annual Growth Rate (CAGR) of 14%, indicating steady but moderate growth. 

However, in 2023, this growth rate surged dramatically, with a staggering increase of 56.1% over the previous year. 

3. As of 2021, Almost 75% of BNPL users in the US are GenZ or millennials. (Emarketer)

This demographic dominance underscores the strong appeal of BNPL services among younger age groups, who are drawn to the financial flexibility they offer. 

With this pool of 45 million US people utilizing BNPL services, the market has experienced a remarkable 81.2% increase from 2020. 

4. Baby Boomers & GenX were expected to account for 30% of BNPL’s users by 2025. (Emarketer)

Notably, Klarna’s recent five-year partnership with Macy’s signifies a trend of BNPL services aligning with stores catering to older demographics. 

However, overcoming the traditional payment habits of older generations may pose a challenge for BNPL providers when 66% of online consumers still perceive it as “financially risky”. 

5. BNPL is predicted to remain the 5th most used payment method on e-commerce sites in 2026. (Demandsage)

Digital wallets continue to dominate the market share, with a projected increase from 49% in 2022 to 54% in 2026, reflecting the convenience and security offered by digital wallet solutions. 

In contrast, Cash on Delivery is expected to significantly decline, comprising only 1% of e-commerce payments by 2026. 

Consumer Behavior and Preferences Statistics 

Consumer behavior is not just comparable but intricately aligned with the rapid pace of technological innovation. Let’s delve into how consumers fare when opting for online shopping using Buy Now Pay Later (BNPL) solutions, with 5 insightful BNPL statistics below:

1. People are 72% spending more on BNPL, especially during the holiday season. (Finance Yahoo)

By the end of 2024, the BNPL market is projected to increase by a staggering 1,200% from its valuation in 2019, signaling a significant shift towards broader acceptance and integration of BNPL in consumer finance. 

Cyber Monday in 2023 exemplified this trend, with a notable 43% increase in BNPL-related online spending, reaching a total of $940 million.

2. 43% of consumers indicated they might reconsider making purchases if BNPL were not available. (PYMNTS)

This trend highlights the evolving role of BNPL in reshaping consumer purchasing patterns, as more individuals prioritize flexibility and convenience when making online transactions. 

As BNPL continues to gain prominence, its influence on consumer behavior is likely to further shape the e-commerce landscape in the coming years.

3. 71% of consumers purchased more online items during COVID-19. (CRResearch)

This surge in online shopping was driven by the emergence of Buy Now, Pay Later (BNPL) services, with 51% of consumers utilizing BNPL options during the pandemic. 

Interestingly, 59% of consumers admitted to using BNPL to purchase unnecessary items they couldn’t afford, with fashion products being the top category during the COVID-19 era.

4. 45% of BNPL users love it because it’s easier to make payments. (CRResearch)

38% of users hold the belief that BNPL will eventually supplant their credit cards.

Interestingly, despite the widespread adoption of BNPL, a sizable 80% of Americans who have not yet tried BNPL exhibit at least some level of interest. 

5. BNPL helps create purchase flexibility when making the process.

66% of customers say they check return policies before purchasing, and more than 50% will steer clear of stores with a strict returns policy. 

The challenge of trying products before buying has long plagued online retailers, as consumers prefer tactile experiences. 

Ultimately, BNPL offers a solution by enabling customers to try before they buy, enhancing confidence in online purchases

E-commerce and Retail Impact Statistics 

Buy Now Pay Later is predominantly embraced by e-commerce platforms, thanks to its flexible payment options that entice consumers to shop more. Now, let’s delve into the profound impact of BNPL on the e-commerce landscape with our insightful stats below:

1. By 2024, $1.217 trillion will be spent on e-commerce purchases (eMarketer).
Concurrently, e-commerce sites offering Buy Now Pay Later (BNPL) options observe higher average online orders, suggesting that BNPL can incentivize consumers to spend more per transaction. 

Additionally, the implementation of BNPL services can also boost e-commerce platforms’ conversion rates by an average of 20–30%.

2. 80% of BNPL users use a service at least every six months. (Explodingtopics)

In particular, over 20% also use it once a month, and 35% of consumers rely on BNPL consistently, using it every time they shop — indicating regularity of BNPL usage among consumers nowadays. 

3. The most frequent amount paid in installments per month sits between $101-$205. (C+R Research)

This suggests that consumers are comfortable spreading payments across multiple purchases within this price range, with the average BNPL user currently paying for approximately four items.

4. Most of BNPL users (66% on average) use the feature to buy Clothing & Fashion products. (PYMNTS)

Following closely behind is the entertainment category, indicating that BNPL is also popular for purchases related to leisure activities and entertainment products. 

Surprisingly, pet supplies rank as the least favored category among BNPL users

5. BNPL has contributed over $297 million to Amazon Prime Days 2023. (QZ)

With a membership base of 230 million worldwide, Prime Day sales surpassed $20 billion on that single day. This marked a 20% increase from the previous year.

Notably, Home goods and household essentials emerged as the top-selling products, comprising 54% of total sales.

Benefits and Drawbacks of Buy Now Pay Later (BNPL) Statistics 

While not yet fully regulated by official government entities, Buy Now Pay Later (BNPL) is often subject to scrutiny regarding its terms and requirements, particularly concerning its impact on consumers’ financial health, especially those with unstable finances. Here are some statistics about the benefits and drawbacks of BNPL that are worth knowing:

1. BNPL encouraged more purchases with 0% options, supported by 17% of consumers with a credit record utilizing a BNPL platform for at least one purchase in 2021. (Bankrate.com)

This highlights the allure of BNPL’s flexible payment terms, particularly for those seeking interest-free financing options. 

Additionally, BNPL services often bypass the need for a credit check, as noted by Fool.com, thus widening accessibility to consumers with lower credit scores. 

2. BNPL is being used only for few times among financially stable users. (Libertystreeteconomics)
While 68% of financially stable BNPL users have taken advantage of the product at least twice in the past year, just 14% have used it ten or more times.

3. 41.8% of people valued ‘Clarity of fees’ as the most important factor for BNPL users. (PYMNTS)
“Ability to monitor spending” closely follows, with 39.1% of respondents emphasizing the importance of tracking expenditures. 

4. From 2022 to 2023, the usage of BNPL services among American adults surveyed declined from 50% to 35%. (The Ascent by The Motley Fool)
In the near future, we may witness a shift in consumer finance preferences or potential concerns over late payments. 

This anticipation is underscored by the fact that 18% of BNPL users in the US are prone to miss payments, revealing the potential repercussions of insufficient fee transparency and financial management within the BNPL framework.

5. Some demographics are at risk with BNPL usage. (eMarketer)
A significant disparity exists in BNPL usage among different age groups, with 46.5% of users being from younger generations, while only 12% are baby boomers and 26.8% are Gen Xers. 

Additionally, compared to traditional consumer credit users, BNPL users typically skew younger, possess lower education levels, carry more debt, exhibit lower credit scores, and face higher financial vulnerability. (Bis.org)

Buy Now Pay Later (BNPL) Future Outlook Statistics

After delving into these statistics, you might be pondering the future of BNPL. Fortunately, insights from officials and major companies shed light on the trajectory of BNPL adoption in their operations.

1. The anticipated CAGR from 2024 to 2032 is 20.7%. (Fortune Business Insights)

This robust growth trajectory is influenced by key trends such as the surge in online shopping, the growing demand for flexible payment options, and increased regulatory scrutiny. 

However, alongside these opportunities come challenges, including effectively managing credit risk and ensuring regulatory compliance. 

2. Google Pay has just added BNPL options. (Google Pay)
In March 2024, Google announced partnerships with Affirm and Zip to introduce BNPL options, allowing users access to multiple BNPL services seamlessly and without additional integration costs. 

With a minimum transaction amount of $35 and a maximum of $2,000, Google Pay aims to provide users with greater flexibility and convenience in their payment choices. 

3. Consumers increasingly supplement card borrowing with BNPL debt. (The Financial Insights)

This trend is reflected in the growing portion of monthly payments allocated towards BNPL debt compared to traditional credit card debt. 

By yearend 2023, 14% of U.S. adults held BNPL debt, while 40% had credit card debt. In terms of average monthly debt, BNPL debt stands at $11, significantly lower than the average card debt of $273. 

However, monthly payments for BNPL debt are rising, averaging $86, while card payments average $385 among consumers with BNPL debt.

4. Larger banks are clearly aware of the need to engage with the BNPL market. (Finextra)
This is evident from notable developments in the banking sector, such as Virgin Money’s introduction of a BNPL credit card, NatWest’s launch of a BNPL credit scheme, and Monzo’s unveiling of a BNPL product with a £3000 limit, all occurring in 2022. 

Additionally, research conducted by the Federal Reserve Bank of New York in 2023 indicates that BNPL loans contribute to expanding financial inclusion.

5. In the last 18 months, BNPL Companies have added revenue streams to fine-tune risks.
When consumer account delinquencies increased last year, many firms adjusted their business models and began relying on alternative data streams and bank account data to assess borrowers’ real-time risk. 

Kevin King, vice president of credit risk at LexisNexis Risk Solutions, noted that BNPL firms have utilized AI and machine learning for years to evaluate potential borrowers’ risk. 

Additionally, some firms have introduced new offerings, such as BNPL-branded debit cards, providing insights into borrowers’ spending habits.

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Unlocking Tomorrow Transactions

Since the onset of COVID-19, Buy Now Pay Later (BNPL) has surged in popularity among online consumers seeking financial flexibility amid economic challenges. 

With its prevalent 0% interest feature, concerns have arisen regarding payment monitoring, particularly as the majority of BNPL users belong to younger generations and may not be financially stable. 

Fortunately, governments and firms are increasingly prioritizing the establishment of fair requirements and adopting technology to ensure the sustainability of tomorrow’s transactions for all parties involved.

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