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Europe Buy Now Pay Later Business Report 2022: Payments are Expected to Reach $248.1 Billion by the End of 2022, Growing by 38.9% - Forecasts to 2028

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Dublin, Nov. 16, 2022 (GLOBE NEWSWIRE) -- The "Europe Buy Now Pay Later Business and Investment Opportunities - 75+ KPIs on Buy Now Pay Later Trends by End-Use Sectors, Operational KPIs, Market Share, Retail Product Dynamics, and Consumer Demographics - Q3 2022 Update" report has been added to ResearchAndMarkets.com's offering.

BNPL payments in the region are expected to grow by 38.9% on an annual basis to reach US$248.1 billion in 2022.

The BNPL payment industry in Europe has recorded strong growth over the last four quarters, supported by increased ecommerce penetration along with the impact of economic slowdown due to disruption caused by Covid-19 outbreak.

Medium to long term growth story of BNPL industry in Europe remains strong. BNPL payment adoption is expected to grow steadily over the forecast period, recording a CAGR of 23.9% during 2022-2028. The BNPL Gross Merchandise Value in the region will increase from US$178.6 billion in 2021 to reach US$899.1 billion by 2028.

Among several countries in Europe, BNPL is more popular in the United Kingdom as compared to other nations, including Italy and Germany. Consumers in the United Kingdom observe retail finance as a convenient way to split the cost of expensive purchases. However, open invoices or pay after delivery is a popular payment method in Germany. RatePay offers open instalments and checkout loan options for e-commerce in Germany. Divido, Mash, CreditClick, and AfterPay are further significant companies in the Western European market.

Since the onset of the pandemic, buy now pay later (BNPL) has grown significantly in the United Kingdom. Besides pure-play BNPL providers, traditional banks and retailers have also introduced payment methods to increase sales and expand market share. With inflation causing more spending introspection, BNPL providers are continuing to branch into new verticals and industries, building upon their growth in the fashion sector.

BNPL has gained increasing traction in travel, healthcare, and B2B applications in the United Kingdom. As the market continues to mature and grow over the next three to four years, installment payments are expected to cover different industries in the country. In 2022, consolidation trends among BNPL providers are also expected to emerge in the UK BNPL market as regulatory proceedings gain momentum.

UK-based BNPL providers are raising funding rounds to accelerate growth in the United States

The demand for BNPL products will remain strong among consumers in the United States in 2022. Amid this growing demand, UK-based BNPL providers are raising funding rounds to accelerate their growth in the United States.

In January 2022, Fly Now Pay Later, a UK-based BNPL provider that assists consumers in spreading their travel costs over several installments, announced that the firm had raised US$75 million in a debt funding round from Atalaya Capital Management. Notably, the debt funding round is part of the firm's strategy to expand operations in the United States.

In June 2022, Zilch, another UK-based BNPL provider, announced that the firm had raised US$50 million in an additional investment round, taking its Series C funding to US$160 million. Like Fly Now Pay Later, Zilch is also planning to use the June 2022 funding to further increase its operations in the United States, where consumers' demand for deferred payment is strong.

Firms are entering into strategic alliances to offer more German shoppers flexible and convenient payment options

As German consumers continue to move farther from traditional payment methods to better alternatives, such as BNPL, e-commerce marketplaces are forging strategic alliances with BNPL providers in Germany.

In March 2022, Klarna, the leading global BNPL firm, announced that the firm had forged a strategic alliance with eBay, an online marketplace. Under the collaboration, Klarna will make Pay Later and Financing options available on eBay's German website, allowing shoppers to access a range of payment methods.

This strategic alliance could mean negative news for PayPal, which once was a subsidiary of eBay and is still an exclusive payment partner for the online marketplace in many countries. Notably, the launch of both payment options is expected to be phased on the German eBay site.

The publisher expects the trend of BNPL adoption to grow further in Germany over the next three to four years, leading to more strategic alliances among digital players.

French BNPL startups are expanding their presence by launching services in more international markets

Globally, the BNPL market is expected to record strong growth over the next three to four years as the adoption of the deferred payment method continues to rise among consumers. Consequently, French BNPL startups are considering international expansion to capitalize on the projected growth of the global BNPL market.

In February 2022, Younited Credit, the French BNPL startup, announced that the firm plans to expand operations into the United Kingdom. Notably, the firm had raised US$368 million in funding as of February 2022 and offered rapid loans up to US$58,000.

The company forecasts that its gross merchandise value (GMV) will reach US$5.7 billion by the end of 2022 after reporting good growth in 2021. Along with France, the firm is also operational in Germany, Italy, Spain, and Portugal, and the United Kingdom is expected to be the sixth market for Younited Credit.

Reasons to buy

  • In-depth Understanding of Buy Now Pay Later Market Dynamics: Understand market opportunities and key trends along with forecast (2019-2028). Understand market dynamics through essential KPIs such as Gross Merchandise Value, Volume, and Average Value Per Transaction.

  • Insights into Opportunity by end-use sectors - Get market dynamics by end-use sectors to assess emerging opportunity across various end-use sectors.

  • Develop Market Specific Strategies: Identify growth segments and target specific opportunities to formulate BNPL strategy; assess market specific key trends, drivers, and risks in the BNPL industry.

  • Get Insights into Consumer Attitude and Behaviour: Drawing from proprietary survey results, this report identifies and interprets key Buy Now Pay Later KPIs, including spend by age, gender, and income level.

Scope

BNPL Market Size and Spending Pattern

  • Gross Merchandise Value Trend Analysis

  • Average Value Per Transaction Trend Analysis

  • Transaction Volume Trend Analysis

Buy Now Pay Later Operational KPIs

  • Buy Now Pay Later Revenues, 2019 - 2028

  • Buy Now Pay Later Share by Revenue Segments

  • Buy Now Pay Later Merchant Commission, 2019 - 2028

  • Buy Now Pay Later Missed Payment Fee Revenue, 2019 - 2028

  • Buy Now Pay Later Pay Now & Other Income, 2019 - 2028

  • Buy Now Pay Later Accounts, 2019 - 2028

Buy Now Pay Later Market Share Analysis by Key Players (20+Players)

Buy Now Pay Later Spend Analysis by Channel: Market Size and Forecast

  • Online Channel

  • POS Channel

Buy Now Pay Later in Retail Shopping: Market Size and Forecast

  • Gross Merchandise Value Trend Analysis

  • Average Value Per Transaction Trend Analysis

  • Transaction Volume Trend Analysis

Buy Now Pay Later in Home Improvement: Market Size and Forecast

  • Gross Merchandise Value Trend Analysis

  • Average Value Per Transaction Trend Analysis

  • Transaction Volume Trend Analysis

Buy Now Pay Later in Leisure & Entertainment: Market Size and Forecast

  • Gross Merchandise Value Trend Analysis

  • Average Value Per Transaction Trend Analysis

  • Transaction Volume Trend Analysis

Buy Now Pay Later in Healthcare and Wellness: Market Size and Forecast

  • Gross Merchandise Value Trend Analysis

  • Average Value Per Transaction Trend Analysis

  • Transaction Volume Trend Analysis

Buy Now Pay Later in Other: Market Size and Forecast

  • Gross Merchandise Value Trend Analysis

  • Average Value Per Transaction Trend Analysis

  • Transaction Volume Trend Analysis

Companies Mentioned

  • Klarna

  • Afterpay

  • Scalapay

  • Bill Pay

  • Klarna

  • Cofidis

  • Viabill

  • Cashper

  • Alma

  • After Pay

  • Paypal

  • RatePay

  • ScalePay

  • Mash and Domec JV

  • SplittyPay

  • Billink

  • Clearpay

  • Mash

  • PFC

  • Sweetpay

  • Zaver

  • ZoodPay

  • Paypal Credit

  • Laybuy

  • Openpay

  • Finloup

  • MelonPay

  • TBI Bank

  • Uplift

  • Paypo

  • Twisto

  • Smartney

  • Allegro Pay

For more information about this report visit https://www.researchandmarkets.com/r/nxf0bo

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