The new report from Hamburg-based market intelligence firm yStats.com, “Global Buy Now Pay Later Market and Trends 2022” offers a comprehensive overview of the new developments in the BNPL market worldwide, provides insights into consumer attitudes towards these services and recent activities of the leading market players. Among other findings, the publication cites a projection that BNPL could account for nearly a quarter of the global B2C E-Commerce sales by 2026.
The BNPL global sales are expected to maintain strong double-digit growth post-pandemic
According to findings in the new yStats.com report, consumers worldwide are increasingly adopting Buy Now Pay Later (BNPL) payment methods. With the number of BNPL users growing rapidly, these services are gaining a higher share of overall online retail sales. Double-digit growth in BNPL sales is expected to continue as the world is starting to recover from the pandemic. By 2026, close to a quarter of global B2C E-Commerce sales could be generated using BNPL offerings.
Gen Z are leading BNPL adoption worldwide
Recent surveys from the major markets, cited in the yStats.com publication, reveal that BNPL services have the highest penetration rates among Gen Z and the Millennials. In the U.S., more than one in three Internet users from Gen Z used BNPL in 2021, and in the UK more 18-24 year-olds used BNPL services than credit cards. As one of the main reasons for using the BNPL payment methods, U.S. consumers stated that these services allowed them to make purchases that otherwise would not fit their budget, while also avoiding credit card interest. At the same time, there is a growing concern over the debt that consumers are accumulating with BNPL services. In Australia, for example, almost one in five consumers had a BNPL loan, as of 2021.
Leading BNPL providers face competitive pressure from new entrants
The top three BNPL providers are Klarna, Afterpay and Affirm, according to data cited in the yStats.com report. Klarna had the highest number of users among the three, and saw this number double between 2019 and 2021. The three BNPL specialists face intensifying competition from banks, credit card networks and payment companies that are boosting their efforts in this fast growing market. Among the recent moves that is expected to have a significant impact on the state of BNPL competition is Block’s acquisition of Afterpay.