U.S. Buy Now Pay Later Market Global Trends And Revenue Growth Up To 2030

U.S. Buy Now Pay Later Market Summary

The U.S. buy now pay later (BNPL) market size was valued at USD 1.64 billion in 2022 and is anticipated to grow at a compound annual growth rate (CAGR) of 24.3% from 2023 to 2030. The increasing popularity of BNPL services across the U.S. in recent years can be primarily attributed to the convenience it provides consumers. BNPL enables customers to obtain goods and services without having to pay the full amount upfront, which appeals especially to those lacking immediate access to sufficient funds. This system allows buyers to divide their payment over a set period, thereby improving their ability to budget and manage financial obligations more effectively.

Another crucial factor fueling the U.S. BNPL market growth is the ongoing shift in consumer preferences. Younger consumers, in particular, are adopting BNPL solutions as alternatives to traditional credit products. Millennials and Generation Z exhibit a general aversion to conventional credit cards and accumulating debt. Consequently, they gravitate toward BNPL services that align more closely with their financial habits, which has significantly contributed to the growing adoption of such offerings and thereby bolstered overall market expansion.

Key Market Trends & Insights

• In 2022, the online segment emerged as the dominant contributor to revenue, accounting for over 65.0% of the market share. The rapid growth of e-commerce and the increasing reliance on digital platforms for shopping have simplified access to a wide array of products and services. Consumers are now able to complete purchases from the comfort of their homes, and the integration of BNPL options within online platforms has enhanced their appeal further by offering flexibility and convenience during the checkout process.
• The segment comprising large enterprises led the U.S. BNPL market in 2022, holding a revenue share exceeding 60.0%. Larger retailers and e-commerce businesses, particularly those that deal with higher average order values, are actively embracing BNPL models. This trend is driven by the potential of BNPL to increase sales volumes and boost customer loyalty by offering flexible payment solutions that reduce financial pressure on buyers at the point of sale.
• Retail emerged as the leading segment by application, capturing more than 74.0% of the total revenue in 2022. Retailers are increasingly incorporating BNPL options during the checkout process to enhance customer conversion rates. By offering buyers a more flexible and interest-free payment method, retail businesses can not only attract a broader customer base but also encourage repeat purchases and higher-value orders.

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Market Size & Forecast

• 2022 Market Size: USD 1.64 billion
• 2030 Projected Market Size: USD 9.20 billion
• CAGR (2023 - 2030): 24.3%

Key Companies & Market Share Insights

A significant driver of BNPL market expansion in the U.S. has been the rise in partnerships and technological integrations between BNPL providers and merchants. Online retailers are increasingly adding BNPL options to their payment systems, which simplifies access to installment-based purchases for consumers. These integrations enhance the user experience and make it easier for buyers to opt for flexible payment plans while shopping online.

In addition to retailer partnerships, BNPL providers are forming alliances with traditional financial institutions, including banks and credit card companies. These collaborations are enabling BNPL platforms to scale their reach and target wider consumer segments. Such strategic relationships not only bolster the availability of BNPL options but also help improve trust among consumers, further aiding in the growth of the U.S. market.

For example, in August 2021, Uplift, Inc., a leading BNPL solution provider, announced a partnership with Tripster, a comprehensive travel booking platform. The collaboration aimed to offer a stress-free vacation planning and payment experience. Through this integration, Uplift allowed users to finance their entire vacation packages via structured monthly installments, providing transparency in total and monthly payment amounts at the time of booking. Customers could access the service seamlessly across desktop and mobile platforms, without incurring late payment or prepayment fees. Moreover, travelers were allowed to commence their travel even before completing all payments, adding further appeal to the offering.

Key Players

• Afterpay US Services, LLC
• PayPal Holdings, Inc.
• Affirm, Inc.
• Splitit
• Sezzle
• Perpay, Inc.
• Uplift, Inc.
• Amazon
• Quadpay, Inc.
• Klarna, Inc.

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Conclusion

The U.S. BNPL market is experiencing rapid growth driven by consumer demand for financial flexibility, especially among younger generations. Increasing e-commerce adoption, strategic partnerships between BNPL providers and merchants, and integration with established financial institutions are key contributors to the market's expansion. Retailers and enterprises alike are embracing BNPL models to attract and retain customers. The appeal of manageable payments, minimal fees, and user-friendly digital platforms makes BNPL a preferred alternative to traditional credit options. As consumer behavior continues to evolve, the BNPL ecosystem is expected to strengthen, playing a vital role in reshaping the country’s retail and financial services landscape.