Buy Now, Pay Later Statistics 2024: Key Trends and Insights Shaping Consumer Finance
Updated · Nov 27, 2024
The concept of Buy Now, Pay Later (BNPL) has revolutionized the way consumers approach their shopping experiences. Imagine being able to purchase high-ticket items instantly, without emptying your wallet at checkout. This trend has rapidly gained traction, particularly among younger consumers, offering a convenient solution for splitting payments into manageable portions. With no interest charged in most cases, it’s no wonder why BNPL platforms are surging in popularity.
However, the BNPL ecosystem is not just a passing trend. It’s a seismic shift in the retail finance industry, reshaping how we think about spending and budgeting. As we enter 2024, BNPL continues to experience explosive growth, attracting millions of users globally and significantly impacting the retail and financial sectors.
Editor’s Choice: Key Growth Milestones in BNPL
BNPL has come a long way from its early inception, and several key milestones have stood out over the past few years. Here are some of the most significant achievements driving BNPL’s growth:
- Over 360 million consumers worldwide used BNPL services in 2023, marking a 24% increase from the previous year.
- In 2022, BNPL transactions in the US alone reached $120 billion, doubling the figures from 2021.
- Affirm, one of the leading BNPL providers in the US, reported a 65% year-on-year growth in its active users, totaling 16.7 million as of 2023.
- Klarna, another major player, processed more than $80 billion in transactions in 2023, solidifying its position in the global BNPL market.
- By 2023, the global BNPL market size reached $179 billion, representing a 45% growth compared to 2022.
- The number of merchants accepting BNPL surged to 1.4 million globally by the end of 2023, illustrating the widespread acceptance of this payment method.
- By 2024, BNPL services are expected to account for 12% of global e-commerce transactions, highlighting its ever-expanding influence in the digital economy.
| Metric | Value (2022) | Value (2023) | Growth/Change (%) |
| Global BNPL Users | 360 million | +24% | |
| BNPL Transactions (US) | $60 billion | $120 billion | +100% |
| Affirm Active Users | 16.7 million | +65% | |
| Klarna Processed Transactions | $80 billion | ||
| Global BNPL Market Size | $123.45 billion | $179 billion | +45% |
| Merchants Accepting BNPL | 1.4 million |
Explosive Growth: Market Size and Dollars
The BNPL sector has witnessed unprecedented growth in both user adoption and transaction volumes over recent years. This surge is driven by the demand for flexible, interest-free payment options, especially among millennials and Gen Z consumers who prefer digital-first solutions.
- The global BNPL market was valued at $179 billion in 2023, and experts project it to exceed $250 billion by 2025.
- In North America, the BNPL market size reached $66 billion in 2023, a significant increase from $42 billion in 2022.
- Europe followed closely, with the BNPL market expanding by 35%, bringing total transactions to $49 billion in 2023.
- The Asia-Pacific region has also embraced BNPL, with countries like Australia seeing $16 billion in BNPL transactions in 2023.
- BNPL platforms like Afterpay, Sezzle, and PayPal Pay in 4 collectively processed $91 billion in the US market during 2023.
- The average transaction size for BNPL users globally in 2023 was approximately $300, highlighting the use of BNPL for mid-range purchases.
- Research predicts that BNPL will drive $680 billion in retail sales worldwide by 2026, nearly quadrupling the current figures.
The numbers speak for themselves. BNPL is no longer just a niche financial product but a mainstream payment solution shaping the future of retail and finance.
General Buy Now Pay Later Statistics
Buy Now, Pay Later services are transforming consumer behavior globally. This innovative payment option allows users to split their purchases into smaller, interest-free installments. It’s not just about convenience; it’s about providing financial flexibility to consumers across different income levels and regions. Here’s a closer look at some key statistics that outline the widespread impact of BNPL:
- $179 billion: This is the estimated global BNPL market size for 2023, reflecting its rapid expansion over the past few years.
- By the end of 2023, 48% of US consumers had used a BNPL service at least once, a significant rise from 31% in 2021.
- In the UK, 40% of adults used BNPL in 2023, showing a remarkable adoption rate in Europe.
- 30% of all online transactions in Australia during 2023 were made using BNPL, underscoring its dominance in the country.
- 35% of Gen Z and 42% of millennials in the US reported using BNPL in 2023, making these younger generations the driving force behind its growth.
- 22 million BNPL users in the US alone were estimated for 2023, with predictions this number will exceed 35 million by 2026.
- BNPL’s appeal transcends small purchases: the average BNPL purchase in 2023 was $300, with some platforms allowing payments to be spread over several months for higher-value items.
These statistics underscore the growing influence of BNPL on consumer finance, and it’s clear that this payment method is here to stay.
Who’s Using BNPL? By User Demographics: Age, Gender, Race, Household Income
BNPL usage cuts across various demographics, but some groups are particularly enthusiastic about these services. By breaking down who’s using BNPL by age, gender, race, and income, we can better understand the user base driving this financial revolution.
- Millennials and Gen Z dominate BNPL usage, with 42% of millennials and 35% of Gen Z in the US using BNPL in 2023.
- Women tend to use BNPL slightly more than men, making up 55% of BNPL users in 2023.
- Among racial demographics, Latino and Black consumers in the US showed higher BNPL adoption rates, with 35% of Latino households and 33% of Black households using BNPL in 2023.
- Middle-income households (earning between $50,000 and $100,000) were the most frequent users of BNPL, representing 40% of users in the US by the end of 2023.
- Interestingly, higher-income households (earning over $100,000) also showed a growing interest in BNPL, accounting for 22% of users in 2023, compared to 18% in 2022.
- 60% of Gen Z users prefer BNPL for managing their budget more effectively, indicating a growing shift towards financial responsibility through payment flexibility.
- In 2023, BNPL services were particularly popular in urban areas, with 45% of urban consumers using BNPL, compared to 27% of rural consumers in the US.
The statistics highlight how BNPL has captured the attention of diverse groups, particularly among younger, tech-savvy consumers seeking financial flexibility.
Top Reasons People Use BNPL
BNPL’s appeal lies in its ability to offer consumers the flexibility they crave in today’s fast-paced world. People are turning to BNPL for various reasons, from budgeting benefits to avoiding high-interest credit cards. Below are some of the top reasons why consumers favor BNPL:
- 66% of users cited budget management as their primary reason for using BNPL in 2023, allowing them to better control their spending.
- 54% of US consumers preferred BNPL over credit cards due to no interest fees.
- 41% of millennials reported using BNPL to avoid credit card debt in 2023, showing a shift away from traditional credit lines.
- 25% of users mentioned impulse buying as a reason for opting for BNPL, particularly for non-essential purchases.
- BNPL promotions offered by retailers led to a 30% increase in sales conversions during 2023, illustrating the appeal of installment payment options at checkout.
- 45% of consumers said that BNPL services helped them make larger purchases that they wouldn’t have otherwise been able to afford upfront.
- 24% of users turned to BNPL during emergencies when they didn’t have immediate access to funds, making it a financial lifeline for unexpected expenses.
The convenience, ease of use, and interest-free nature of BNPL are powerful incentives for consumers, particularly those looking to avoid traditional credit.
BNPL Provider Market Share and Popularity of Apps
As the Buy Now, Pay Later (BNPL) sector grows, several key players have emerged, capturing significant portions of the market. With diverse offerings tailored to different customer needs, these BNPL providers are expanding their footprints globally, influencing how consumers interact with retailers.
- Klarna leads the global BNPL market with a 45% market share in Europe and substantial operations in North America, handling over $80 billion in transactions by 2023.
- Afterpay, another major BNPL player, controlled 16% of the US BNPL market in 2023 and is rapidly growing in markets such as the UK and Australia.
- Affirm, a leading BNPL provider in the US, boasts 11.3 million active users in 2023 and a growing market share, especially among US e-commerce platforms.
- PayPal’s BNPL option, Pay in 4, saw impressive growth, with 7.4 million users opting for this service in 2023, capturing a 14% share of the US market.
- Zip, based in Australia, processed $14 billion in transactions globally by 2023, expanding its presence in Asia-Pacific and North America.
- Sezzle, another fast-growing BNPL service, grew its user base by 24% in 2023, with more than 3 million active users across the US and Canada.
- Clearpay (the UK arm of Afterpay) reached 3.2 million active users in 2023, positioning itself as a dominant BNPL option in the UK retail sector.
These providers, with their diverse platforms and services, continue to lead the charge, making BNPL a preferred payment option across the globe.
BNPL Segmental Statistics by Region (Asia Pacific, US, etc.)
The adoption and growth of BNPL services vary significantly by region. While the US and Europe have been at the forefront, the Asia-Pacific region is also witnessing rapid growth in this segment.
- The US market remains the largest for BNPL, with transactions totaling $120 billion in 2023, accounting for nearly 35% of the global BNPL market.
- Europe followed closely with BNPL transactions reaching $49 billion in 2023, with countries like the UK, Germany, and Sweden leading the charge.
- Asia-Pacific is experiencing a boom, with Australia contributing $16 billion to the BNPL market in 2023, representing 10% of its global share.
- In India, BNPL adoption grew by 40% year-on-year, with $9.7 billion in BNPL transactions recorded in 2023.
- Canada saw a 35% increase in BNPL adoption in 2023, with transactions totaling $6 billion, largely driven by younger consumers.
- In Latin America, BNPL is gaining momentum, with countries like Brazil and Mexico experiencing a 50% increase in BNPL transactions by 2023, bringing total BNPL sales to $4 billion.
- Africa is also embracing BNPL, particularly in South Africa, where the BNPL market is projected to grow 30% annually, reaching $1.2 billion by 2025.
These regional statistics highlight the global reach of BNPL services and the unique factors driving growth in different parts of the world.
BNPL Use During the Holiday Season
The holiday season is a peak period for retail, and BNPL plays a significant role in boosting sales during this time. Consumers are increasingly turning to BNPL services to manage their holiday shopping budgets and spread out payments.
- In 2023, 40% of all holiday purchases in the US were made using BNPL services, an increase from 33% in 2022.
- $30 billion worth of transactions during the 2023 holiday season in the US were processed through BNPL platforms, marking a 20% increase from 2022.
- Klarna reported a 50% rise in BNPL transactions during the Black Friday and Cyber Monday sales in 2023, highlighting the growing preference for installment payments.
- Afterpay saw a 30% surge in transactions during the holiday shopping period in 2023, processing over $5 billion globally.
- 60% of Gen Z shoppers in the US used BNPL for holiday purchases in 2023, up from 47% in 2022.
- BNPL usage during the 2023 holiday season also increased in Europe, with 35% of UK consumers opting for BNPL services for their holiday shopping.
- Retailers offering BNPL saw an average sales boost of 25% during the holiday season in 2023, showcasing the financial benefits for businesses embracing this payment option.
The holiday season demonstrates how BNPL is becoming an essential tool for consumers looking to manage their spending and retailers aiming to drive more sales.
Recent Developments in BNPL
As we enter 2024, the Buy Now, Pay Later industry continues to evolve, with new trends and regulations shaping its future.
- Regulatory oversight is increasing, particularly in the US and UK, with both governments proposing stricter rules for BNPL providers to ensure transparency and consumer protection.
- Apple Pay Later, a new entrant to the BNPL market, is expected to make significant waves in 2024, potentially challenging established players like Klarna and Afterpay.
- BNPL platforms are increasingly integrating with digital wallets and cryptocurrency options, offering consumers more flexibility in how they manage payments.
- 2024 is likely to see more partnerships between BNPL providers and large retailers, expanding the availability of installment payments at checkout.
- Environmental, social, and governance (ESG) considerations are starting to influence BNPL platforms, with some providers exploring sustainable finance models.
- The Asia-Pacific region, particularly India and Southeast Asia, is poised for explosive growth in 2024, with BNPL adoption expected to increase by 45% year-on-year.
- Artificial intelligence and machine learning are being increasingly utilized by BNPL providers to offer more personalized credit options and improve customer experiences.
These developments underscore how BNPL is evolving from a consumer payment trend to a major component of the global financial landscape.
Conclusion
Buy Now, Pay Later (BNPL) has shifted from a niche payment option to a global financial phenomenon. As we move through 2024, BNPL continues to grow in market size, user adoption, and geographic reach, driven by demand for flexible, interest-free payment options. With younger generations embracing these services, businesses that integrate BNPL into their payment systems will see significant benefits.
However, as the sector expands, so too does the need for regulatory oversight and innovation. The emergence of new players, increasing regional adoption, and the integration of AI and sustainable finance models will shape the future of BNPL in 2024 and beyond. Consumers and businesses alike will need to adapt to this evolving financial landscape.
Sources
Barry Elad is a dedicated tech and finance enthusiast, passionate about making technology and fintech concepts accessible to everyone. He specializes in collecting key statistics and breaking down complex information, focusing on the benefits that software and financial tools bring to everyday life. Figuring out how software works and sharing its value with users is his favorite pastime. When he's not analyzing apps or programs, Barry enjoys creating healthy recipes, practicing yoga, meditating, and spending time in nature with his child. His mission is to simplify finance and tech insights to help people make informed decisions.
