The popularity of BNPL significantly grew during the pandemic, its market size will only increase in the coming years
According to SafeBettingSites, the total transactional value of BNPL payments will grow by 78% in 2022. The payment method’s reach among online customers is still developing in most countries. Hence, the market presents massive room for growth.
According to the numbers available on Statista, the value of BNPL transactions will reach $214 billion in 2022. Compared to $120 billion in 2021, it represents a 78% increase. Analysing past growth, we may see that the market had doubled in value in 2021 (from $60 billion in 2020 to $120 billion).
Experts expect the market to thrive in the coming years. Thus, in 2023-2026, the market size is expected to more than double. According to the estimates, the annual BNPL transactional value will reach $576 billion by 2026, growing at a CAGR of 36.8%.
Currently, Buy Now Pay Later payments prevail in Nordic countries. They accounted for 25% of eCommerce transactions in Klarna’s homeland Sweden in 2021. The Scandinavian country was followed by Germany (20%), Norway (18%), Finland (13%), and Denmark (12%).
On a global picture, the share of BNPL payments was only 3% of e-commerce transactions last year. Many prospective financial markets are close to global statistics. For instance, BNPL payments accounted for only 4% of transactions in the United States and 3% in India.
Besides, the countries where BNPL payments are currently popular are all developed economies. Since Buy Now Pay Later is particularly more attractive to lower and lower-middle-income demographics, one can expect the BNPL market size to grow significantly once these payment options become popular in developing economies.