Buy Now Pay Later - Thematic Research

Buy Now Pay Later - Thematic Research


This report discusses the disruptive potential of the BNPL sector on the payments industry. It identifies the leading companies that are driving growth in the space as well as the benefits BNPL provides to both merchants and consumers. The report also discusses the risks around BNPL loans and the future regulatory outlook.

Buy now pay later (BNPL) providers disrupt the lending sector by simplifying access to loans to consumers and reducing friction at payment points. The sector has been around for many years, but it has seen rapid growth recently as key players expanded into new regions. Long dominated by key BNPL providers such as Klarna, Clearpay, and Affirm, the sector is now being challenged by incumbent card networks and banks such as Visa, Mastercard, and Barclays. The sector has been able to grow so rapidly partly due to a lack of regulation. However, governing bodies are reviewing the sector and considering imposing rules to protect consumers from accumulating unmanageable debt.


  • The global BNPL sector reached $160 billion in 2021.
  • Millennials and Generation Z are the main demographics driving the adoption of BNPL.
  • UK consumers paid $50.7 million in BNPL late fees in the UK in 2020, while one in 10 consumers dealt with debt collectors due to unpaid loans.
  • In 2020, Klarna reached 87 million users, generated $1 billion in revenue, but reported a loss of $139 million.
Reasons to Buy
  • Understand key technology, macroeconomic, and regulatory trends driving BNPL.
  • Find out how BNPL challenges the payment card market.
  • Find out how incumbent financial institutions are responding to BNPL.
  • Identify the key players in the sector.

  • Executive Summary
  • Players
    • Table Figure 1: Who are the leading players in the BNPL theme and where do they sit in the value chain?
  • Trends
    • Technology trends
      • Table Technology trends
    • Macroeconomic trends
      • Table Macroeconomic trends
    • Regulatory trends
      • Table Regulatory trends
  • Industry Analysis
    • Table Figure 2: BNPL market size
    • Table Figure 3: Australia ecommerce market share
    • Table Figure 4: Sweden's ecommerce market share
    • Table Figure 5: BNPL usage
    • Table Figure 6: Amount borrowed
    • Regulation
  • Mergers and Acquisitions
    • Table Mergers and Acquisitions
  • Timeline
    • Table Figure 7: The BNPL story
  • Value Chain
    • Table Figure 8: The BNPL value chain
    • Lending
      • Table Figure 9: Lending
    • Open banking
      • Table Figure 10: Open banking
    • Security provider
      • Table Figure 11: Security provider
    • Credit bureaus
      • Table Figure 12: Credit bureaus
    • Credit card model vs. BNPL model
      • Credit cards
      • BNPL
        • Table Figure 14: BNPL model
    • Traditional lenders providing BNPL services
      • Barclays
      • Visa and Mastercard
    • Risks of BNPL
      • Credit scoring approach
        • Table Figure 15: Traditional credit scoring relies on five key metrics
      • The Klarna effect
  • Companies
    • Table Companies
  • Sector Scorecards
    • Payments sector scorecard
      • Who's who
        • Table Figure 16: Who does what in the payments space?
      • Thematic screen
        • Table Figure 17: Thematic screen - Payments sector scorecard
      • Valuation screen
        • Table Figure 18: Valuation screen - Payments sector scorecard
      • Risk screen
        • Table Figure 19: Risk screen - Payments sector scorecard
    • Ecommerce sector scorecard
      • Who's who
        • Table Figure 20: Who does what in the ecommerce space?
      • Thematic screen
        • Table Figure 21: Thematic screen - Ecommerce sector scorecard
      • Valuation screen
        • Table Figure 22: Valuation screen - Ecommerce sector scorecard
      • Risk screen
        • Table Figure 23: Risk screen - Ecommerce sector scorecard
  • Glossary
    • Table Glossary
  • Secondary Sources
  • Further Reading
    • GlobalData reports
      • Table GlobalData reports
  • Our thematic research methodology
    • Table Figure 24: Our five-step approach for generating a sector scorecard
  • About GlobalData
  • Contact Us

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