Aug 21, 2024

BNPL payments are expected to grow by 15.2% on an annual basis to reach US$167.0 billion in 2024. The medium to long-term growth story of the BNPL industry in the region remains strong. BNPL payment adoption is expected to grow steadily over the forecast period, recording a CAGR of 10.1% during 2024-2029. The BNPL gross merchandise value in the region will increase from US$145.0 billion in 2023 to reach US$269.7 billion by 2029. This report provides a detailed data-centric analysis of the Buy Now Pay Later (BNPL) industry, covering market opportunities and risks across a range of retail categories. With over 75 KPIs at the country level, this report provides a comprehensive understanding of BNPL market dynamics, market size and forecast, and market share statistics. The buy now pay later sector is poised for accelerated growth in the European market over the medium term. The rising adoption among consumers, across age groups, will drive the growth of the industry in Europe. Not just young generation shoppers, but even older cohort is turning to the payment solution to fund their everyday purchases, as inflation continues to bite their household income. The margin pinch, caused by higher interest rates and an inflationary environment, resulted in a few global providers shutting down their operations in Europe. However, this resulted in growth opportunities for other firms, who are expected to expand aggressively across the European market, to accelerate growth rate. Overall, the publisher maintains a positive growth outlook for the BNPL industry in Europe over the next three to four years. Firms are expanding in the European market to boost usage and drive growth in the region With the market projected to grow over the next three to four years in Europe, businesses are expanding in the region to tap into untapped markets. The expansion strategy is also driving the trend of strategic collaborations in the sector. Marqeta, in October 2023, entered into a strategic partnership with Scalapay to drive the buy now pay later usage in Europe. As part of the collaboration, the two firms will issue virtual cards for online and in-store transactions to Scalapay's BNPL users. The scalable platform offered by Marqeta will support Scalapay to drive better shopping experiences for its users. Klarna, on the other hand, is also planning to expand its presence across the European region. The firm is seeking in-store partnerships to benefit from the growing usage of BNPL products among consumers across age groups. The move to expand aggressively in the European region comes at a time when a few firms have taken measures to cut down costs. Zip, for instance, abandoned 10 of the 14 markets it operated in, including the United Kingdom in 2023. Clearpay, in 2023, also ceased operations in many European nations, including Italy, France, and Spain. This is offering growth opportunities for firms like Klarna, who are well-positioned to accelerate growth rate in Europe on the back of rising demand. An increasing number of Brits are turning to buy now pay later schemes in the United Kingdom The inflationary environment has put a strain on consumer spending power, with a vast majority of the Brits struggling to even pay their bills. As a result, millions of shoppers have turned to payment solutions like buy now pay later schemes to fund their purchases and daily lifestyle. According to a report from Citizens Advice, 11% of consumers have used the payment method for grocery shopping. This percentage increases to 35% among frequent BNPL users. In another report, published by the Financial Conduct Authority, nearly 14 million Brits were using the BNPL schemes to make purchases in six months, leading to January 2023. In 2024, the publisher expects the trend to further continue in the United Kingdom market. The higher uptake of the BNPL schemes is aiding the gross merchandise value and volume growth for providers. However, this is also resulting in higher delinquencies, with many users not able to make timely repayments. BNPL startups are raising funding rounds to offer innovative payment solutions in Italy Amid the rising demand for installment payment solutions across the region, several startups have entered into the sector to tap into the growth market. These startups are also raising funding to reach more customers in the region. Qomodo, the Italy-based payment aggregator, announced that the firm had raised €34.5 million in its pre-seed funding round in November 2023. The BNPL service offered by the firm is specifically directed towards in-store retailers, which is expected to drive the next growth phase of the BNPL industry across Europe over the medium term. Going forward, the publisher expects more such startups to raise funding rounds, driving the competitive landscape in the sector. Furthermore, the publisher expects firms to enter into strategic partnerships, as they seek to widen the distribution of their BNPL product in the in-store segment. Key Topics Covered: Austria Buy Now Pay Later Business and Investment Opportunities (2020-2029) Databook Belgium Buy Now Pay Later Business and Investment Opportunities (2020-2029) Databook Denmark Buy Now Pay Later Business and Investment Opportunities (2020-2029) Databook Finland Buy Now Pay Later Business and Investment Opportunities (2020-2029) Databook France Buy Now Pay Later Business and Investment Opportunities (2020-2029) Databook Germany Buy Now Pay Later Business and Investment Opportunities (2020-2029) Databook Greece Buy Now Pay Later Business and Investment Opportunities (2020-2029) Databook Italy Buy Now Pay Later Business and Investment Opportunities (2020-2029) Databook Netherlands Buy Now Pay Later Business and Investment Opportunities (2020-2029) Databook Norway Buy Now Pay Later Business and Investment Opportunities (2020-2029) Databook Poland Buy Now Pay Later Business and Investment Opportunities (2020-2029) Databook Spain Buy Now Pay Later Business and Investment Opportunities (2020-2029) Databook Sweden Buy Now Pay Later Business and Investment Opportunities (2020-2029) Databook Switzerland Buy Now Pay Later Business and Investment Opportunities (2020-2029) Databook United Kingdom Buy Now Pay Later Business and Investment Opportunities (2020-2029) Databook Key Attributes: