US Buy Now, Pay Later Market Size (2021–2026)
Arecent studyon themost popular online payment methodssuggests an increasing preference for thebuy now, pay later (BNPL) payment planamong consumers—especially those located in North America.
In 2021, 4% of all online purchases there were paid for using buy now, pay later services. This is expected to more than double to 9% by 2025. Thenumber of buy now, pay later US usersis also set to increase from 79 million in 2022 to 99.7 million in 2025.
What sort of impact will this have on the buy now, pay later market size? Here’s a close look at the US BNPL market size and its growth.
US BNPL market growth
According to anew reporton the buy now, pay later market size, BNPL payment volumes are forecast to hit $75.6 billion in 2022. This would mark a 77.3% annual increase from 2021’s $42.6 billion. Despite the impressive growth, it would still mark a slowdown from 2021, during which the market skyrocketed 149.2%.
The BNPL market growth is showing no signs of stopping. Sales volumes are projected to continue increasing over the years, albeit at a slower pace. In 2023, the buy now, pay later market size is expected to expand by 25.5%, to a total of $94.9 billion. By 2024, it’s set to increase by 18.2% annually and surpass $100 billion for the first time, to hit $112.1 billion.
Growth rates are expected to sustain around 12% to 14% in the following two years. In 2025, the BNPL market is predicted to grow by 13.9% to $127.7 billion in sales, before rising another 12.3% in 2026 to $143.4 billion.
In other words, industry analysts predict that the US buy now, pay later market size is set to more than triple from 2021 to 2026, growing at an average annual growth rate of 29.4%.
Even though the BNPL payment option has beenaround for a long time, it has exploded in recent years.Experts attribute thisto the COVID-19 pandemic, which they say triggered a shift in consumers’ shopping habits and edged them towardonline shopping. Reports say this is especially so among younger shoppers who are jumping on the trendto finance high-ticket purchases.