The Era of Uncertainty: Buy Now, Pay Later

What Short-Term Challenges and Long-Term Changes Mean for Providers and Retailers Right Now

Report by David Morris  | Jun 27, 2022
Download
Report
Share
Table of Contents
Executive Summary
BNPL Challenges Not for the Faint of Heart
Short-Term Changes
Long-Term Changes
What It All Means for Retailers and Providers
Read Next
Sources
Media Gallery
About This Report
BNPL providers are in the eye of a perfect storm, as investor and regulatory scrutiny, increasing competition, and the prospect of recession put them at risk. But it’s still early days—and we see foresee a long growth runway. Read on to learn how retailers and providers can navigate the current landscape to their maximum benefit.
Topics
Payments
US
Table of Contents
Executive Summary
BNPL Challenges Not for the Faint of Heart
Short-Term Changes
Long-Term Changes
What It All Means for Retailers and Providers
Read Next
Sources
Media Gallery

Executive Summary

Buy now, pay later (BNPL) usage has exploded in the US, as consumers flock to installment loans that blend the flexibility of credit, short repayment terms, and app-based shopping into a simple, easy user experience. But investor and regulatory scrutiny, increasing competition, and a pending recession are putting BNPL providers at risk.

Key Question: What are the short- and long-term challenges of BNPL, and what do they mean for providers and retailers?

US Buy Now, Pay Later (BNPL) Users, by Platform, 2022 (millions)
E-Mail ChartDownload

KEY STAT: We forecast that Klarna, Afterpay, and Affirm count close to 70 million users on their BNPL platforms. But newer entrants Block, PayPal, and Apple draw from larger, more diversified user bases, increasing the pressure.

Here’s what’s in the full report

1file

Exportable files for easy reading, analysis and sharing.

3charts

Reliable data in simple displays for presentations and quick decision making.

Table of Contents

  1. Executive Summary
  2. BNPL Challenges Not for the Faint of Heart
  3. Short-Term Changes
  1. Long-Term Changes
  2. What It All Means for Retailers and Providers
  3. Read Next
  1. Sources
  2. Media Gallery

Charts in This Report

US Buy Now, Pay Later (BNPL) Users, by Platform, 2022 (millions)US Buy Now, Pay Later (BNPL) Users, 2021-2025 (millions, % change, and % of digital buyers)
US Buy Now, Pay Later (BNPL) Sales, 2021-2026 (billions and % change)

Access All Charts and Data

Gain access to reliable data presented in clear and intelligible displays for quick understanding and decision making on the most important topics related to your industry, included at no extra cost.
Gain Access to EMARKETER →
Log in to EMARKETER

authors

David Morris

Contributors

Daniel Decea
Researcher, Financial Services
Jaime Toplin
Senior Analyst