US Buy Now, Pay Later Market Size (2023–2027)
A recent study on the most popular online payment methods suggests an increasing preference for the buy now, pay later (BNPL) payment plan among consumers—especially those located in North America.
In 2022, 5% of all online purchases there were paid for using buy now, pay later services. This is expected to rise to 7% by 2026. The number of buy now, pay later US users is also set to increase from 88.2 million in 2023 to over 100 million by 2026.
What sort of impact will this have on the buy now, pay later market size? Here’s a close look at the US BNPL market size and its growth.
US BNPL market growth
According to a new report on the buy now, pay later market size, BNPL payment volumes are forecast to hit $71.9 billion in 2023. This represents a 19.7% annual increase from 2022.
The BNPL market growth is showing no signs of stopping. Sales volumes are projected to continue increasing over the years. In 2024, the buy now, pay later market size is expected to further expand, to reach a total of $80.8 billion. A further increase of 20.4% is forecast for 2025, with total sales volumes set to hit $97.3 billion.
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Industry experts predict that the US BNPL market will surpass $100 billion for the first time in 2026, as overall payment values hit $111.6 billion. Growth is expected to sustain in 2027, rising by 11.9%, to $124.8 billion.
In other words, industry analysts predict that the US buy now, pay later market size will expand by double digits every year from 2023 to 2027. In this forecast period, the buy now, pay later market’s growth is set to register an average annual rate of 15.8%, marking an overall increase of 73.5%. The biggest rise is expected in 2025, while the smallest increase is set to come in 2027.
Even though the BNPL payment option has been around for a long time, it has exploded in recent years. Experts attribute this to the COVID-19 pandemic, which they say triggered a shift in consumers’ shopping habits and edged them toward online shopping. Reports say this is especially so among younger shoppers who are jumping on the trend to finance high-ticket purchases.