Klarna will lead in US BNPL payment value by 2027

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Key stat: Klarna will generate $33.38 billion in US buy now, pay later (BNPL) payment value by 2027, pulling ahead of Affirm in a period of massive growth for BNPL providers, per our forecast.

Beyond the chart:

  • Klarna has continued to expand its BNPL services to attract more users, including a recent partnership with Airbnb.
  • Gen Z will be the primary driver of BNPL growth, but there’s still healthy usage from Gen X and baby boomers, which will make up a combined 37.5 million users by 2027, according to our US Buy Now, Pay Later Forecast 2023 report.
  • Gen Z will be key to moving BNPL payments from online to in-store.

Use this chart:

  • Identify the leaders in US BNPL payments.
  • Compare BNPL providers based on payment value.
  • Show a growth trend in BNPL payments.

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Note: Buy now, pay later (BNPL) services are defined as installment loan solutions that allow consumers to purchase and finance a product or service and pay in scheduled installments. These services are also known as digital installments, installment lending, and point-of-sale financing. Loan options include no-interest loans, as well as interest-based loans of a predetermined duration. BNPL loans can be accessed at the point-of-sale (online or in-person), usually via a BNPL loan provider's branded app, via a merchant’s website or app, or via proximity mobile payment apps like Apple Pay and Google Pay. Examples include Affirm, Afterpay, Klarna, Zip, and PayPal’s BNPL service. Some short-term, no-interest loans can be accessed only at retailers. Examples include Bread Pay and SetPay. Services that provide a revolving line of credit, retailer-branded financing options, closed-loop marketplace financing services, and card-linked installment services are excluded.

Methodology: Estimates are based on the analysis of survey and traffic data from research firms, historical consumer adoption and buying trends, payment adoption trends, reported company data, interviews, demographic and socioeconomic factors, and macro-economic conditions.