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United Kingdom Buy Now Pay Later Business and Investment Opportunities

United Kingdom Buy Now Pay Later Business and Investment Opportunities

According to PayNXT360, BNPL payments in the country are expected to grow by 35.1% on an annual basis to reach US$42,028.6 million in 2022. Medium to long term growth story of BNPL industry in United...

United Kingdom Buy Now Pay Later Business and Investment Opportunities – 75+ KPIs on Buy Now Pay Later Trends by End-Use Sectors, Operational KPIs, Market Share, Retail Product Dynamics, and Consumer Demographics - Q3 2022 Update
Summary
According to PayNXT360, BNPL payments in the country are expected to grow by 35.1% on an annual basis to reach US$42,028.6 million in 2022.

Medium to long term growth story of BNPL industry in United Kingdom remains strong. BNPL payment adoption is expected to grow steadily over the forecast period, recording a CAGR of 18.5% during 2022-2028. The BNPL Gross Merchandise Value in the country will increase from US$31,102.5 million in 2021 to reach US$116,564.9 million by 2028.

Since the onset of the pandemic, buy now pay later (BNPL) has grown significantly in the United Kingdom. Besides pure-play BNPL providers, traditional banks and retailers have also introduced the payment method to increase their sales and expand market share. With inflation causing more spending introspection, BNPL providers are continuing to branch into new verticals and industries, building upon their growth in the fashion sector. 

In the United Kingdom, BNPL has gained increasing traction in travel, healthcare, and B2B applications. As the market continues to mature and grow over the next three to four years, installment payments are expected to cover different industries in the country. In 2022, consolidation trends among BNPL providers are also expected to emerge in the UK BNPL market as regulatory proceedings gain momentum in the country. 

Notably, as pure-play BNPL providers continue to record strong traction among consumers, banks are also looking at the sector, with major names, including NatWest, poised to launch the BNPL service for their customers. The expansion of traditional banking institutions in the sector is expected to further drive innovation and competition in the United Kingdom BNPL market from the short to medium-term perspective. 

UK-based BNPL providers are raising funding rounds to accelerate growth in the United States 

The demand for BNPL products will remain strong among consumers in the United States in 2022. Amid this growing demand, UK-based BNPL providers are raising funding rounds to accelerate their growth in the United States. For instance, 

• In January 2022, Fly Now Pay Later, a UK-based BNPL provider that assists consumers in spreading their travel costs over several installments, announced that the firm had raised US$75 million in a debt funding round from Atalaya Capital Management. Notably, the debt funding round is part of the firm's strategy to expand operations in the United States. 

• In June 2022, Zilch, another UK-based BNPL provider, announced that the firm had raised US$50 million in an additional investment round, taking its Series C funding to US$160 million. Like Fly Now Pay Later, Zilch is also planning to use the June 2022 funding to further expand its operations in the United States, where the demand for deferred payment is strong among consumers. 

Over the next three to four years, PayNXT360 expects more such BNPL providers to raise funding rounds to support their expansion and growth plans in the global region. 

Financial services firms are launching credit card-linked BNPL products for consumers in the United Kingdom

Globally, many banks and financial services firms are entering the flourishing BNPL sector by launching their own deferred payment product. In the United Kingdom, similar trends are visible, wherein financial services firms are launching credit card-linked BNPL products. For instance, 

• In July 2022, Virgin Money, a financial services firm in the United Kingdom, announced the launch of its credit card, which allows consumers to spread the cost of their purchases over several months. This means that the firm has marked its entry into the competitive United Kingdom BNPL industry. The credit card-linked BNPL service, Virgin Money Slyce card, offers cash back at several retailers, including Sweaty Betty, H&M, and many more. 

PayNXT360 expects more financial services firms and banking institutions to enter the UK BNPL market as the demand among Brits continues to grow over the next three to four years. 

More BNPL providers are expected to send consumer credit reports to credit agencies in the United Kingdom 

In a move to help consumers build credit, an increasing number of BNPL providers are expected to send consumer credit reports to credit agencies in the United Kingdom. This move will also allow the BNPL industry to become more acceptable in regulatory circles. Notably, in the United Kingdom, some of the leading BNPL providers are sending credit reports to credit agencies. For instance, 

• In May 2022, Klarna, one of the leading global BNPL providers, announced that the firm would share consumer credit reports with credit agencies in a move that will assist users in building their credit history while also driving transparency in the BNPL sector. Notably, similar trends are visible in other countries, where BNPL providers have started sharing consumer credit reports with credit agencies. 

As regulatory scrutiny continues to grow around the BNPL industry, PayNXT360 expects more BNPL firms to adopt such a proactive approach in the United Kingdom and in other countries around the world.
Scope
This report provides in-depth, data-centric analysis of Buy Now Pay Later industry in United Kingdom. Below is a summary of key market segments:

United Kingdom BNPL Market Size and Spending Pattern
• Gross Merchandise Value Trend Analysis 
• Average Value Per Transaction Trend Analysis 
• Transaction Volume Trend Analysis 

United Kingdom Buy Now Pay Later Operational KPIs
• Buy Now Pay Later Revenues, 2019 – 2028
• Buy Now Pay Later Share by Revenue Segments
• Buy Now Pay Later Merchant Commission, 2019 – 2028
• Buy Now Pay Later Missed Payment Fee Revenue, 2019 – 2028
• Buy Now Pay Later Pay Now & Other Income, 2019 – 2028
• Buy Now Pay Later Accounts, 2019 – 2028
• Buy Now Pay Later Bad Debt, 2019 – 2028

United Kingdom Buy Now Pay Later Market Share Analysis by Key Players (Klarna, Clearpay, Paypal Credit, Laybuy, Openpay)

United Kingdom Buy Now Pay Later Spend Analysis by Channel: Market Size and Forecast
• Online Channel
• POS Channel

United Kingdom Buy Now Pay Later in Retail Shopping: Market Size and Forecast
• Gross Merchandise Value Trend Analysis 
• Average Value Per Transaction Trend Analysis 
• Transaction Volume Trend Analysis 

United Kingdom Buy Now Pay Later in Home Improvement: Market Size and Forecast
• Gross Merchandise Value Trend Analysis 
• Average Value Per Transaction Trend Analysis 
• Transaction Volume Trend Analysis

United Kingdom Buy Now Pay Later in Leisure & Entertainment: Market Size and Forecast
• Gross Merchandise Value Trend Analysis 
• Average Value Per Transaction Trend Analysis 
• Transaction Volume Trend Analysis

United Kingdom Buy Now Pay Later in Healthcare and Wellness: Market Size and Forecast
• Gross Merchandise Value Trend Analysis 
• Average Value Per Transaction Trend Analysis 
• Transaction Volume Trend Analysis

United Kingdom Buy Now Pay Later in Other: Market Size and Forecast
• Gross Merchandise Value Trend Analysis 
• Average Value Per Transaction Trend Analysis 
• Transaction Volume Trend Analysis

United Kingdom Buy Now Pay Later Analysis by Consumer Attitude and Behaviour
• Buy Now Pay Later Sales Uplift by Product Category
• Buy Now Pay Later Spend Share by Age Group
• Buy Now Pay Later Gross Merchandise Share by Income 
• Buy Now Pay Later Gross Merchandise Value Share by Gender
• Buy Now Pay Later Adoption Rationale Gross Merchandise Value Analysis
Reason to buy
• In-depth Understanding of Buy Now Pay Later Market Dynamics: Understand market opportunities and key trends along with forecast (2019-2028). Understand market dynamics through essential KPIs such as Gross Merchandise Value, Volume, and Average Value Per Transaction.

• Insights into Opportunity by end-use sectors – Get market dynamics by end-use sectors to assess emerging opportunity across various end-use sectors.

• Develop Market Specific Strategies: Identify growth segments and target specific opportunities to formulate BNPL strategy; assess market specific key trends, drivers, and risks in the BNPL industry.

• Get Insights into Consumer Attitude and Behaviour: Drawing from proprietary survey results, this report identifies and interprets key Buy Now Pay Later KPIs, including spend by age, gender, and income level.

• Market Share by Key Players
Table of Contents
 1. About this Report
1.1 Summary
1.2 Methodology
1.3 Disclaimer

2. United Kingdom BNPL Market Size and Future Growth Dynamics
2.1 Consumer Behavior
2.2 Competitive Landscape and Growth Strategies
2.3 Market Share
2.4 Regulatory Trends

3. United Kingdom Buy Now Pay Later Industry Attractiveness
3.1 United Kingdom Buy Now Pay Later – Gross Merchandise Value Trend Analysis, 2019-2028
3.2 United Kingdom Buy Now Pay Later – Average Value Per Transaction Trend Analysis, 2019-2028
3.3 United Kingdom Buy Now Pay Later – Transaction Volume Trend Analysis, 2019-2028

4. United Kingdom Buy Now Pay Later Operational KPIs
4.1 Buy Now Pay Later Revenues, 2019 – 2028
4.2 Buy Now Pay Later Share by Revenue Segments
4.3 Buy Now Pay Later Merchant Commission, 2019 – 2028
4.4 Buy Now Pay Later Missed Payment Fee Revenue, 2019 – 2028
4.5 Buy Now Pay Later Pay Now & Other Income, 2019 – 2028
4.6 Buy Now Pay Later Accounts, 2019 – 2028
4.7 Buy Now Pay Later Bad Debt, 2019 – 2028

5. United Kingdom Buy Now Pay Later Spend Analysis by Channel
5.1 Buy Now Pay Later Market Share by Channel, 2019 – 2028
5.2 Buy Now Pay Later Online Channel Market Size and Forecast, 2019 – 2028
5.3 Buy Now Pay Later POS Channel Market Size and Forecast, 2019 – 2028

6. United Kingdom Buy Now Pay Later Snapshot by End-Use Sector
6.1 Buy Now Pay Later Market Share by End-Use Sector – Emerging Avenues and Future Growth Prospects
6.2 Buy Now Pay Later Sales Uplift by End-Use Sector
6.3 Buy Now Pay Later Share by Retail Product Category

7. United Kingdom Buy Now Pay Later in Retail Shopping: Market Size and Forecast, 2019 – 2028
7.1 United Kingdom Buy Now Pay Later Retail Shopping – Gross Merchandise Value Trend Analysis, 2019-2028
7.2 United Kingdom Buy Now Pay Later Retail Shopping – Average Value Per Transaction Trend Analysis, 2019-2028
7.3 United Kingdom Buy Now Pay Later Retail Shopping – Transaction Volume Trend Analysis, 2019-2028

8. United Kingdom Buy Now Pay Later in Home Improvement: Market Size and Forecast, 2019 – 2028
8.1 United Kingdom Buy Now Pay Later Home Improvement – Gross Merchandise Value Trend Analysis, 2019-2028
8.2 United Kingdom Buy Now Pay Later Home Improvement – Average Value Per Transaction Trend Analysis, 2019-2028
8.3 United Kingdom Buy Now Pay Later Home Improvement – Transaction Volume Trend Analysis, 2019-2028

9. United Kingdom Buy Now Pay Later in Leisure & Entertainment: Market Size and Forecast, 2019 – 2028
9.1 United Kingdom Buy Now Pay Later Leisure & Entertainment – Gross Merchandise Value Trend Analysis, 2019-2028
9.2 United Kingdom Buy Now Pay Later Leisure & Entertainment – Average Value Per Transaction Trend Analysis, 2019-2028
9.3 United Kingdom Buy Now Pay Later Leisure & Entertainment – Transaction Volume Trend Analysis, 2019-2028

10. United Kingdom Buy Now Pay Later in Healthcare and Wellness: Market Size and Forecast, 2019 – 2028
10.1 United Kingdom Buy Now Pay Later Healthcare and Wellness – Gross Merchandise Value Trend Analysis, 2019-2028
10.2 United Kingdom Buy Now Pay Later Healthcare and Wellness – Average Value Per Transaction Trend Analysis, 2019-2028
10.3 United Kingdom Buy Now Pay Later Healthcare and Wellness – Transaction Volume Trend Analysis, 2019-2028

11. United Kingdom Buy Now Pay Later in Other Segment: Market Size and Forecast, 2019 – 2028
11.1 United Kingdom Buy Now Pay Later Other Segment – Gross Merchandise Value Trend Analysis, 2019-2028
11.2 United Kingdom Buy Now Pay Later Other Segment – Average Value Per Transaction Trend Analysis, 2019-2028
11.3 United Kingdom Buy Now Pay Later Other Segment – Transaction Volume Trend Analysis, 2019-2028

12. United Kingdom Buy Now Pay Later Analysis by Consumer Attitude and Behaviour
12.1 Buy Now Pay Later Spend Share by Age Group
12.2 Buy Now Pay Later Gross Merchandise Share by Income
12.3 Buy Now Pay Later Gross Merchandise Value Share by Gender
12.4 Buy Now Pay Later Adoption Rationale

13. Further Reading
13.1 About PayNXT360
13.2 Related Research
List Of Table
Table 1: United Kingdom Buy Now Pay Later – Gross Merchandise Value Trend Analysis (US$ Million), 2019-2028
Table 2: United Kingdom Buy Now Pay Later – Average Value Per Transaction Trend Analysis (US$), 2019-2028
Table 3: United Kingdom Buy Now Pay Later – Transaction Volume Trend Analysis (Thousand), 2019-2028
Table 4: United Kingdom Buy Now Pay Later – Revenues (US$ Million), 2019-2028
Table 5: United Kingdom Buy Now Pay Later – Merchant Commission (US$ Million), 2019-2028
Table 6: United Kingdom Buy Now Pay Later – Missed Payment Fee Revenue (US$ Million), 2019-2028
Table 7: United Kingdom Buy Now Pay Later Pay Now & Other Income (US$ Million), 2019-2028
Table 8: United Kingdom Buy Now Pay Later – Accounts (Thousand), 2019-2028
Table 9: United Kingdom Buy Now Pay Later – Bad Debt (US$ Million), 2019-2028
Table 10: United Kingdom Buy Now Pay Later – Gross Merchandise Value by Online Channel (US$ Million), 2019-2028
Table 11: United Kingdom Buy Now Pay Later – Gross Merchandise Value by POS Channel (US$ Million), 2019-2028
Table 12: United Kingdom Buy Now Pay Later Retail Shopping – Gross Merchandise Value Trend Analysis (US$ Million), 2019-2028
Table 13: United Kingdom Buy Now Pay Later Retail Shopping – Average Value Per Transaction Trend Analysis (US$), 2019-2028
Table 14: United Kingdom Buy Now Pay Later Retail Shopping – Transaction Volume Trend Analysis (Thousand), 2019-2028
Table 15: United Kingdom Buy Now Pay Later Home Improvement – Gross Merchandise Value Trend Analysis (US$ Million), 2019-2028
Table 16: United Kingdom Buy Now Pay Later Home Improvement – Average Value Per Transaction Trend Analysis (US$), 2019-2028
Table 17: United Kingdom Buy Now Pay Later Retail Shopping Home Improvement – Transaction Volume Trend Analysis (Thousand), 2019-2028
Table 18: United Kingdom Buy Now Pay Later Leisure & Entertainment – Gross Merchandise Value Trend Analysis (US$ Million), 2019-2028
Table 19: United Kingdom Buy Now Pay Later Leisure & Entertainment – Average Value Per Transaction Trend Analysis (US$), 2019-2028
Table 20: United Kingdom Buy Now Pay Later Leisure & Entertainment – Transaction Volume Trend Analysis (Thousand), 2019-2028
Table 21: United Kingdom Buy Now Pay Later Healthcare and Wellness – Gross Merchandise Value Trend Analysis (US$ Million), 2019-2028
Table 22: United Kingdom Buy Now Pay Later Healthcare and Wellness – Average Value Per Transaction Trend Analysis (US$), 2019-2028
Table 23: United Kingdom Buy Now Pay Later Healthcare and Wellness – Transaction Volume Trend Analysis (Thousand), 2019-2028
Table 24: United Kingdom Buy Now Pay Later Other Segment – Gross Merchandise Value Trend Analysis (US$ Million), 2019-2028
Table 25: United Kingdom Buy Now Pay Later Other Segment – Average Value Per Transaction Trend Analysis (US$), 2019-2028
Table 26: United Kingdom Buy Now Pay Later Other Segment – Transaction Volume Trend Analysis (Thousand), 2019-2028
List of figures
Figure 1: PayNXT360’s Methodology Framework
Figure 2: United Kingdom Buy Now Pay Later – GMV and Adoption Rationale
Figure 3: United Kingdom Buy Now Pay Later – Share by Gender and Age Group
Figure 4: United Kingdom Buy Now Pay Later – Market Share Analysis by Key Players (%)
Figure 5: United Kingdom Buy Now Pay Later – Gross Merchandise Value Trend Analysis (US$ Million), 2019-2028
Figure 6: United Kingdom Buy Now Pay Later – Average Value Per Transaction Trend Analysis (US$), 2019-2028
Figure 7: United Kingdom Buy Now Pay Later – Transaction Volume Trend Analysis (Thousand), 2019-2028
Figure 8: United Kingdom Buy Now Pay Later – Revenues (US$ Million), 2019-2028
Figure 9: Buy Now Pay Later Share by Revenue Segments
Figure 10: United Kingdom Buy Now Pay Later – Merchant Commission (US$ Million), 2019-2028
Figure 11: United Kingdom Buy Now Pay Later – Missed Payment Fee Revenue (US$ Million), 2019-2028
Figure 12: United Kingdom Buy Now Pay Later Pay Now & Other Income (US$ Million), 2019-2028
Figure 13: United Kingdom Buy Now Pay Later – Accounts (Thousand), 2019-2028
Figure 14: United Kingdom Buy Now Pay Later – Bad Debt (US$ Million), 2019-2028
Figure 15: United Kingdom Buy Now Pay Later – Gross Merchandise Value Market Share by Channel (%), 2019-2028
Figure 16: United Kingdom Buy Now Pay Later – Gross Merchandise Value by Online Channel (US$ Million), 2019-2028
Figure 17: United Kingdom Buy Now Pay Later – Gross Merchandise Value by POS Channel (US$ Million), 2019-2028
Figure 18: United Kingdom Buy Now Pay Later – Market Share by End-Use Sector, 2021 Vs. 2028
Figure 19: United Kingdom Buy Now Pay Later – Market Share by End-Use Segment, 2021
Figure 20: United Kingdom Buy Now Pay Later – Market Share by Retail Product Category, 2021
Figure 21: United Kingdom Buy Now Pay Later Retail Shopping – Gross Merchandise Value Trend Analysis (US$ Million), 2019-2028
Figure 22: United Kingdom Buy Now Pay Later Retail Shopping – Average Value Per Transaction Trend Analysis (US$), 2019-2028
Figure 23: United Kingdom Buy Now Pay Later Retail Shopping – Transaction Volume Trend Analysis (Thousand), 2019-2028
Figure 24: United Kingdom Buy Now Pay Later Home Improvement – Gross Merchandise Value Trend Analysis (US$ Million), 2019-2028
Figure 25: United Kingdom Buy Now Pay Later Home Improvement – Average Value Per Transaction Trend Analysis (US$), 2019-2028
Figure 26: United Kingdom Buy Now Pay Later Home Improvement – Transaction Volume Trend Analysis (Thousand), 2019-2028
Figure 27: United Kingdom Buy Now Pay Later Leisure & Entertainment – Gross Merchandise Value Trend Analysis (US$ Million), 2019-2028
Figure 28: United Kingdom Buy Now Pay Later Leisure & Entertainment – Average Value Per Transaction Trend Analysis (US$), 2019-2028
Figure 29: United Kingdom Buy Now Pay Later Leisure & Entertainment – Transaction Volume Trend Analysis (Thousand), 2019-2028
Figure 30: United Kingdom Buy Now Pay Later Healthcare and Wellness – Gross Merchandise Value Trend Analysis (US$ Million), 2019-2028
Figure 31: United Kingdom Buy Now Pay Later Healthcare and Wellness – Average Value Per Transaction Trend Analysis (US$), 2019-2028
Figure 32: United Kingdom Buy Now Pay Later Healthcare and Wellness – Transaction Volume Trend Analysis (Thousand), 2019-2028
Figure 33: United Kingdom Buy Now Pay Later Other Segment – Gross Merchandise Value Trend Analysis (US$ Million), 2019-2028
Figure 34: United Kingdom Buy Now Pay Later Other Segment – Average Value Per Transaction Trend Analysis (US$), 2019-2028
Figure 35: United Kingdom Buy Now Pay Later Other Segment – Transaction Volume Trend Analysis (Thousand), 2019-2028
Figure 36: United Kingdom Buy Now Pay Later – Share by Age Group in Gross Merchandise Value Terms
Figure 37: United Kingdom Buy Now Pay Later – Share by Income Group in Value Terms
Figure 38: United Kingdom Buy Now Pay Later – Share by Gender in Value Terms
Figure 39: Buy Now Pay Later – Adoption Rationale Gross Merchandise Value Analysis
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