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United States Buy Now Pay Later Business and Investment Opportunities

United States Buy Now Pay Later Business and Investment Opportunities

According to PayNXT360, BNPL payments in the country are expected to grow by 48.6% on an annual basis to reach US$126,823.5 million in 2022. Medium to long term growth story of BNPL industry in Unite...

United States 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 48.6% on an annual basis to reach US$126,823.5 million in 2022.

Medium to long term growth story of BNPL industry in United States remains strong. BNPL payment adoption is expected to grow steadily over the forecast period, recording a CAGR of 24.1% during 2022-2028. The BNPL Gross Merchandise Value in the country will increase from US$85,370.3 million in 2021 to reach US$463,751.5 million by 2028.

In the United States, the buy now pay later (BNPL) industry has experienced strong growth over the last two years, particularly within the retail sector. Heavy advertisements of BNPL payment option providers across different channels, including social platforms, have driven the popularity and adoption of BNPL services among American consumers during the global pandemic outbreak. 

These consumers are not only using the BNPL payment method for big-ticket items but also smaller purchases. From consumer electronics to beauty and home décor products, BNPL has found its way across different product categories. While the demand for BNPL services remains strong among consumers in the United States, the rising interest rates are expected to slow down the growth rate for providers. 

In the regulatory space, the Consumer Financial Protection Bureau (CFPB) instructed leading BNPL providers in the country, including Affirm, Afterpay, Klarna, Zip, and PayPal, to start providing comprehensive data on transactions, credit checks, and underwriting procedures. As regulatory developments continue to take place in the United States BNPL market, competition in the industry is increasing month on month, with new players entering the market. This growing competition is expected to lead to more consolidation trends from the short to medium-term perspective in the United States. 

Global players are raising funding rounds to expand their reach in the United States BNPL market

The demand for the BNPL payment method will remain strong in the United States in 2022. To capitalize on this growing demand for credit among Americans and to compete with other leading players in the sector, global firms are raising funding rounds to expand their reach in the US BNPL market. For instance, 

• In June 2022, Zilch, one of the leading BNPL firms based in the United Kingdom, announced that the firm had raised US$50 million in additional funding round to top up its US$110 million investment raised in November 2021. Notably, the firm is planning to use the investment to boost the growth of its business in the United States. 

The funding announcement from the firm follows the United Kingdom government news that BNPL providers are set to face regulation in the United Kingdom. Notably, the HM Treasury has set out a framework for the Financial Conduct Authority to review the sector. 

BNPL providers are entering into strategic partnerships with digital payment processors to expand their merchant network 

Globally, one of the strategies adopted by BNPL providers is forging a strategic alliance with digital payment processors, as it allows them to expand their merchant network, thereby boosting their transaction value and volume. In the United States, firms are following the same strategies to boost their merchant network. For instance,

• In May 2022, Affirm, one of the leading BNPL firms in the United States, announced that the firm had forged a strategic alliance with Stripe, a digital payment processor. Under the partnership, Stripe merchants in the United States will be able to make use of the adaptive checkout service offered by Affirm, which allows shoppers to split their purchases into installments. 

• Before Stripe, Affirm had forged similar deals with Amazon and Shopify. Along with Stripe, the firm has entered into more partnerships in the country. However, the agreement with Stripe is more important as the payment processor has a wide reach in the American market. As of May 2022, Affirm had a merchant network of 207,000 from a mere 12,000 in 2021. During the same period, the active users for the firm increased 137% to reach 12.7 million. 

To further strengthen its position in the United States BNPL market, where the competition is growing aggressively, PayNXT360 expects Affirm to enter into more such strategic partnerships over the next three to four years. 

Big conglomerates are jumping onto the BNPL bandwagon in the United States 

Amid the high projected growth of the United States BNPL industry, major tech giants are entering the BNPL market, which means, for startups, headroom for mass-market BNPL products may shrink in the country. For instance, 

• In June 2022, Apple, during its WWDC keynote, announced that the firm is entering into the BNPL sector through the launch of its deferred payment service Apple Pay Later. The service will allow consumers across the United States to split their purchases in installments at millions of retailers who already accept Apple Pay. 

• PayNXT360 expects the launch of the Apple Pay Later service will further increase the Apple Pay users for the tech giant in the United States. Moreover, the entry of Apple into the BNPL segment means increased competition for market leaders, such as Klarna, Affirm, and Afterpay, who are already facing strong headwinds due to the rise in interest rates. 

As more and more big players continue to enter the BNPL industry, competition in the space is expected to intensify. Moreover, the entry of big conglomerates into the market can lead to more consolidation activities in the United States over the next three to four years.
Scope
This report provides in-depth, data-centric analysis of Buy Now Pay Later industry in United States. Below is a summary of key market segments:

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

United States 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 States Buy Now Pay Later Market Share Analysis by Key Players (Paypal, Klarna, Affirm, Afterpay, Futurepay)

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

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

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

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

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

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

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

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