U.S and International Buy Now, Pay Later Market Perspectives Report 2021-2025 - ResearchAndMarkets.com

The "Buy Now, Pay Later: Point of Sale Installment Loans in the U.S. Market and International Perspectives, 2nd Edition" report has been added to ResearchAndMarkets.com's offering.

Buy Now, Pay Later (BNPL) lending volumes were surging even prior to the global COVID-19 pandemic, with consumers shifting their financing preferences from revolving credit products such as credit cards to installment loan products.

After the initial onset of the pandemic and through subsequent waves of variants and variable infection rates, consumers both paid down their outstanding credit card balances and rapidly increased their use of debit cards and BNPL installment loans. In a landscape of unstable economic recovery and uncertain health outcomes, consumers sought out and adopted budgeting and payment methods that aligned with those trends and gave them greater control over their household finances.

Consumer credit is a multi-trillion dollar industry in the U.S., with BNPL installment loan (also called point-of-sale or POS installment loan) volume subsumed under the financial results reporting category of "personal loans."

This report slices out BNPL installment loans from their parent category, providing U.S. market size estimates for 2015 vs. 2020, as well as year-by-year projections through 2025. These projections were developed in the context of swift changes in consumer payment preferences during the pandemic, as well as macro-U.S. economic and consumer demographic trends.

While focusing on the BNPL installment loan industry in the U.S., this report also covers the wider context on BNPL financing in Asian, European, and Latin American countries.

This report reviews current U.S. consumer borrowing behaviors; strategic positioning initiatives by financial technology companies (fintechs), banks, card issuers and card networks; and the cross-border rollout of those initiatives across product categories and commerce platforms.

It also analyzes each of the principal business models in the industry, examining the potential viability of each model as more players join and bring their own marketing messages, merchant partnerships, and revenue models.

The report provides a complete industry context for BNPL installment lending, an assessment of the strategies and success of extant and new participants in the sector, and a detailed analysis of the opportunities and challenges to those entering or competing in the BNPL sector.

U.S. Dynamics: Traditional Players

• U.S. Banks and Card Issuers Join BNPL Finance Market
• U.S. Banks
• Bank: Citizens Financial
• Consortium: GreenSky Financial
• Card Issuer: Citibank
• Bank: Goldman Sachs
• Card Issuer: JPMorgan Chase
• Finance Company: Synchrony Financial
• Card Networks Enter BNPL Finance Market
• Industry Context
• Visa
• American Express
• Mastercard

U.S. Dynamics: Fintechs

• International Fintechs Drive Innovation in U.S. BNPL Finance
• Fintechs Targeting Consumers With/Without Credit
• Klarna
• Largest BNPL Provider with Valuation of $45.6 Billion
• Klarna's Market Performance Has Investors Clamoring to Give it $Millions
• Klarna's U.S. Focus
• Klarna Vibe Loyalty Program
• Klarna Offers Consumers Three BNPL Financing Products
• Klarna Reports that its Product Boosts Average Order Value by 68%
• In-App Browser Lets Shoppers Use Klarna Anywhere on the Internet
• PayPal Credit
• Since 2008, PayPal Credit has Originated $50 Billion in BNPL Installment Loans
• Moving into New Regional Markets with BNPL Acquisitions
• Marketing to Both Merchants and PayPal Users
• PayPal Credit Introduces Pay in 4 to its Pay Later Roster
• Pay in 4 was PayPal's Response to Competitors and its Merchant Demands
• Affirm
• Since 2016, Affirm has processed $15.0 billion for Merchants
• Investor Pop Took January 2021 IPO to $23.2 Billion
• Affirm Began as a Payment Option for Subprime Consumers
• Most Offers Are Through E-Commerce and an In-App Shopping Browser
• Walmart Offers Affirm BNPL Loans at its 4,000 U.S. Stores
• Amazon, Peloton and Affirm
• Affirm's AI Lets it Approve 126% More Borrowers than Synchrony
• Affirm at a Strategic Crossroads on Achieving Profitability
• Afterpay
• Afterpay Offers a Single, No-Interest Product
• Its "Mall" of Afterpay Stores Is Available Online or Through Its App
• Virtual Card Brings Afterpay into the Payments Options of Largest Retailers
• Afterpay Showing Solid Growth in U.K.
• Acquisition by Square for $29 Billion
• Amazon
• Amazon's BNPL Options
• Loan Details
• Sezzle
• Sezzle Built Key Partnerships in 2020 and 2021
• Sezzle's Spiel: 4 Interest-free Payments Over 6 Weeks
• In 2 Years, Sezzle Grew from 1 Million Customers to 2.9 Million Customers
• Sezzle Enters Contract with Target and Introduces a Loyalty Program
• New BNPL Features
• BNPL Product Extension with Ally Financial for Purchases up to $40,000
• Surging Growth
• Sezzle's IPO Captures Aussie Investors' Enthusiasm for BNPL Finance

International Market Dynamics

• Global Snapshot
• Overview
• Latin America
• China
• Western Europe
• National Debt and Payment Preferences
• BNPL Is Growing Twice as Fast as Credit Cards
• BNPL Growth Is Fueled by Consumers' Desire for Payment Choices
• Having Payment Options Informs U.K. Consumers' Choice of Merchants
• Europeans Use Wide Range of E-Commerce Payment Options
• Finally, Germany Moving to Credit Cards and BNPL Finance
• Benefits from E-Commerce and Highly Developed BNPL Tech
• Brazil
• Largest Latin American Marketplace
• Robust Installment Loan Ecosystem
• Consumer Financial Services Growing
• More Internet and More Smartphones
• Previously, Consumers Left Stack of Postdated Checks as Installments
• Brazilian Retailers Advertised Installment Price, Not Full Retail Price
• Installments Used in 80% of Brazilian E-Commerce Purchases
• In Other Markets, Fintechs Collect Shopper Payments
• Biggest E-commerce Categories Are Electronics and Travel
• Daunting Import Tariffs Act to Depress E-Commerce Volumes
• Mexico
• Mexico's E-Commerce Value More than Doubled Between 2014 and 2019
• Debit Cards Are Not Authorized for Digital Commerce
• Country's Largest C-Store Lets Consumers Buy Online and Pay Cash In-Store
• Market Solution Still Needed for Paying in Cash Installment for E-Commerce
• China's High Level of Mobile commerce
• Tighter Regulations Tamper Chinese BNPL
• China, and the Countries It Invests In, Are Most Advanced BNPL Finance Markets
• Tencent
• Alibaba
• Leveraging Chinese Tourists to Enter New Markets
• Trade Wars Are Thwarting Plans

For more information about this report visit https://www.researchandmarkets.com/r/ntbx86

View source version on businesswire.com: https://www.businesswire.com/news/home/20211015005465/en/

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