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| Buy Now Pay Later Platforms Market Size |
The global Buy Now Pay Later Platforms Market is estimated to be valued at US$ 10.42 Bn in 2021 and is expected to
exhibit a CAGR of 21.5% over the forecast period 2022 to 2030, as highlighted
in a new report published by Coherent Market Insights.
Market Overview:
Buy Now Pay Later platforms provide consumers with the advantage of purchasing
products and services without upfront payment. These platforms allow customers
to pay for their purchases in installments over a certain period of time. The
need for such platforms has risen owing to the convenience they offer in terms
of flexible payment options and the elimination of interest charges. The rise
in e-commerce and the growing trend of online shopping are driving the demand
for Buy Now Pay Later platforms. These platforms also benefit retailers by
increasing their conversion rate and boosting customer loyalty.
Market Key Trends:
One key trend in the Buy Now Pay Later Platforms Market is the integration of
these platforms with e-commerce websites. This integration allows customers to
easily select the Buy Now Pay Later option during the online checkout process,
providing a seamless payment experience. By combining the checkout and payment
processes, customers are more likely to complete their purchase. This trend is
gaining traction due to the increasing number of e-commerce transactions
worldwide. Retailers are recognizing the importance of offering convenient
payment options to enhance the customer experience and increase sales. The
integration of Buy Now Pay Later platforms with e-commerce websites is expected
to drive the growth of the market in the coming years.
Porter’s Analysis
Threat of New Entrants: The Buy
Now Pay Later Platforms Market Size is highly attractive, resulting in
the potential entry of new players. However, the market is already dominated by
established players such as Afterpay, Zippay, and Klarna. These companies have
significant market share and strong brand recognition, making it difficult for
new entrants to gain a foothold.
Bargaining Power of Buyers: Buyers in the Buy Now Pay Later Platforms market
have relatively high bargaining power. This is because there are several
options available for consumers to choose from, and they can easily switch
between platforms if they are not satisfied with the terms or services offered
by a particular platform. This puts pressure on platforms to provide
competitive pricing and attractive features to retain their customer base.
Bargaining Power of Suppliers: Suppliers in the Buy Now Pay Later Platforms
market have limited bargaining power. This is because the platforms themselves
act as intermediaries between the buyers and the sellers. They provide the
financing options to consumers and ensure timely payment to the sellers. As a
result, the platforms have leverage over the suppliers and can dictate the
terms and conditions of their service.
Threat of New Substitutes: The threat of new substitutes in the Buy Now Pay
Later Platforms market is relatively low. While traditional credit cards can be
considered as substitutes, the convenience and flexibility offered by these
platforms make them a preferred option for many consumers. Additionally, the
strong brand presence and customer loyalty enjoyed by the key players in the
market further reduce the likelihood of customers switching to substitutes.
Competitive Rivalry: The Buy Now Pay Later Platforms market is highly
competitive, with several key players vying for market share. Afterpay, Zippay,
and Klarna are some of the dominant players in the market, offering similar
services and features. This has led to intense competition among these players,
with each striving to attract and retain customers. The high level of
competition is driving innovation and improvements in the services provided by
the platforms, ultimately benefiting the consumers.
Key Takeaways
The global Buy Now Pay Later Platforms market is expected to witness high
growth, exhibiting a CAGR of 21.5% over the forecast period of 2022 to 2030.
This growth can be attributed to the increasing popularity of online shopping
and the desire for flexible payment options among consumers. The convenience
and ease of use offered by these platforms have made them a preferred choice
for many shoppers, driving the market growth.
In terms of regional analysis, North America is expected to be the
fastest-growing and dominating region in the Buy Now Pay Later Platforms
market. This can be attributed to the high adoption rate of e-commerce in the
region and the increasing acceptance of alternative payment methods. The
presence of major market players and the strong financial infrastructure in
North America further contribute to its dominance in the market.
Key players operating in the Buy Now Pay Later Platforms market include
Afterpay, Zippay, VISA, Sezzle, Affirm, Paypal, Splitit, Latitude Financial
Services, Klarna, Humm, and Openpay. These players have established themselves
as market leaders and are constantly innovating to stay ahead in the highly
competitive market. With their strong brand presence, extensive customer base,
and continuous product enhancements, these key players are expected to maintain
their dominance in the market.
Read More: https://www.trendingwebwire.com/buy-now-pay-later-platforms-market-analysis/