Description

Stay ahead of the curve with this report on the buy now, pay later (BNPL) industry. A deep analysis of the competitive landscape provides the backdrop for Mintel consumer data, which offers an understanding of what consumers want from BNPL and why. Use this to your advantage and grow your business today. Below, we provide the key topics covered and handpicked insights from the report itself.

Key Topics Covered

  • BNPL adoption levels.
  • The types of BNPL providers consumers use.
  • Interest levels in using BNPL across different categories.
  • Top reasons consumers use BNPL.
  • Attitudes toward BNPL.

BNPL Market Overview

BNPL has seen strong growth, driven by younger segments, with almost three-quarters of Millennials using it in the past year. Like other debt products, there is still the potential for financial overextension with missed payment fees (depending on the provider). While competition is intensifying, opportunities are open to pure-plays and traditional FIs alike to capitalize on demand.

The BNPL Consumer

  • BNPL usage: Over half of consumers overall have used BNPL in the past year. Consumers using these usually interest-free loans find that these products offer a greater sense of predictability around spending.
  • Reasons for using BNPL: Ease of use is the top driver of BNPL adoption among consumers. Subprime BNPL users are likely to be in financial difficulty, observed in 42% of consumers stating financial difficulty not wanting to pay lump sum as the reason for using BNPL.
  • Interest in BNPL products: Consumers show interest in BNPL for healthcare purposes, providing an opportunity for partnerships in this area. Those financially struggling may see appeal in options allowing for preventative care, reducing issues further down the line.

What’s Next for BNPL?

BNPL providers should expect to see increased usage during the holiday season, and card issuers are in a good position to capitalize on this. For example, issuers can promote their fee-free introductory offers on BNPL solutions.

Find a complete analysis of opportunities for BNPL providers in the full report. Alternatively, browse our finance industry reports.

Leading Brands Referenced

Affirm, Amazon, Sezzle, Afterpay, Klarna, and more are analyzed within the report scope, offering an understanding of the competitive landscape.

Additional Features Included in Your Report

Different Digital Formats: PDF for conveniently sharing with your team, PowerPoint for quickly including in your presentation, as well as an Excel Databook.

Mintel’s Clients Portal: Our portal offers instant access to actionable analysis and trends pieces relevant to your industry that are published almost daily. You can also browse for more market research reports.

Expert Analysis

Leading finance analyst Amr Hamdi offers expert industry insight with this report.

Those who stand out in the BNPL space will be the ones able to own the customer relationship across shopping, payments, and banking touchpoints.

Amr Hamdi, Finance Analyst for Mintel

 

Amr Hamdi
Finance Analyst

Table of Contents

    • Key Issues Covered in this Report
  1. Executive Summary

    • Consumer trends: key takeaways
    • Graph 1: BNPL usage, by financial product ownership, 2023
    • Graph 2: usage of BNPL providers in the past year, by self-reported credit score, 2023
    • Opportunities
  2. Consumer Insights

    • The buy now, pay later consumer: fast facts
    • BNPL usage
    • Graph 3: BNPL usage in the past year, by generation, 2023
    • Graph 4: usage of BNPL providers in the past year, 2023
    • Graph 5: usage of BNPL providers in the past year, by generation, 2023
    • Graph 6: usage of BNPL providers in the past year, by race and ethnicity, 2023
    • Graph 7: types of products or services bought through BNPL in the past year, 2023
    • BNPL interest in products and services
    • Graph 8: interest in using BNPL for healthcare, by financial situation, 2023
    • Graph 9: interest in using BNPL for home improvement, by generation, 2021 and 2023
    • Reasons for using BNPL
    • Graph 10: top reasons for using BNPL, 2023
    • Graph 11: reasons for using BNPL, by financial situation, 2023
    • Average purchase price willing to finance through BNPL
    • Graph 12: average purchase price consumers would use BNPL for, 2021 and 2023
    • Graph 13: average purchase price consumers would use BNPL for, by generation, 2023
    • Consumer regrets with BNPL
    • Graph 14: regrets using BNPL, 2023
    • Graph 15: regrets using BNPL, by financial situation, 2023
    • Graph 16: top reasons for regretting using BNPL, 2023
    • Graph 17: top reasons for regretting using BNPL, by age, 2023
    • Attitudes toward BNPL
    • Graph 18: attitudes toward BNPL vs credit cards, by generation, 2023
    • Graph 19: likelihood to shop at retailers that offer BNPL, by generation, 2023
    • Graph 20: attitudes toward BNPL delinquency, by household income, 2023
  3. Competitive Strategies

    • Marketing and advertising
  4. The Market

    • Market context
    • Market drivers
  5. Appendix

About the report

This market report provides in-depth analysis and insight supported by a range of data. At the same time, introductory and top-level content is provided to give you an overview of the issues covered.

Market

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Consumer

Mintel’s proprietary consumer research provides our analysts with the attitudinal and behavioral data used to provide valuable insight to topical issues.

Brand/Company

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Data

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