UK Markets closed

United Kingdom Buy Now Pay Later Market Analysis Report 2022-2028 - Financial Services Firms are Launching Credit Card-linked BNPL Products for Consumers

Company Logo
Company Logo

Dublin, Nov. 09, 2022 (GLOBE NEWSWIRE) -- The "United Kingdom 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 are expected to grow by 35.1% on an annual basis to reach US$42,028.6 million in 2022.

Medium to long term growth story of BNPL industry in United Kingdom remains strong. BNPL payment adoption is expected to grow steadily over the forecast period, recording a CAGR of 18.5% during 2022-2028. The BNPL Gross Merchandise Value in the country will increase from US$31,102.5 million in 2021 to reach US$116,564.9 million by 2028.

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 the payment method to increase their 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.

In the United Kingdom, BNPL has gained increasing traction in travel, healthcare, and B2B applications. 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 in the country.

Notably, as pure-play BNPL providers continue to record strong traction among consumers, banks are also looking at the sector, with major names, including NatWest, poised to launch the BNPL service for their customers. The expansion of traditional banking institutions in the sector is expected to further drive innovation and competition in the United Kingdom BNPL market from the short to medium-term perspective.

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 expand its operations in the United States, where the demand for deferred payment is strong among consumers.

Over the next three to four years, the publisher expects more such BNPL providers to raise funding rounds to support their expansion and growth plans in the global region.

Financial services firms are launching credit card-linked BNPL products for consumers in the United Kingdom

Globally, many banks and financial services firms are entering the flourishing BNPL sector by launching their own deferred payment product. In the United Kingdom, similar trends are visible, wherein financial services firms are launching credit card-linked BNPL products.

In July 2022, Virgin Money, a financial services firm in the United Kingdom, announced the launch of its credit card, which allows consumers to spread the cost of their purchases over several months. This means that the firm has marked its entry into the competitive United Kingdom BNPL industry. The credit card-linked BNPL service, Virgin Money Slyce card, offers cash back at several retailers, including Sweaty Betty, H&M, and many more.

The publisher expects more financial services firms and banking institutions to enter the UK BNPL market as the demand among Brits continues to grow over the next three to four years.

More BNPL providers are expected to send consumer credit reports to credit agencies in the United Kingdom

In a move to help consumers build credit, an increasing number of BNPL providers are expected to send consumer credit reports to credit agencies in the United Kingdom. This move will also allow the BNPL industry to become more acceptable in regulatory circles. Notably, in the United Kingdom, some of the leading BNPL providers are sending credit reports to credit agencies.

In May 2022, Klarna, one of the leading global BNPL providers, announced that the firm would share consumer credit reports with credit agencies in a move that will assist users in building their credit history while also driving transparency in the BNPL sector. Notably, similar trends are visible in other countries, where BNPL providers have started sharing consumer credit reports with credit agencies.

As regulatory scrutiny continues to grow around the BNPL industry, the publisher expects more BNPL firms to adopt such a proactive approach in the United Kingdom and in other countries around the world.

Scope

United Kingdom BNPL Market Size and Spending Pattern

  • Gross Merchandise Value Trend Analysis

  • Average Value Per Transaction Trend Analysis

  • Transaction Volume Trend Analysis

United Kingdom 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 Bad Debt, 2019 - 2028

United Kingdom Buy Now Pay Later Market Share Analysis by Key Players (Klarna, Clearpay, Paypal Credit, Laybuy, Openpay)

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

  • Online Channel

  • POS Channel

United Kingdom 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

United Kingdom 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

United Kingdom 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

United Kingdom 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

United Kingdom 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

United Kingdom Buy Now Pay Later Analysis by Consumer Attitude and Behaviour

  • Buy Now Pay Later Sales Uplift by Product Category

  • Buy Now Pay Later Spend Share by Age Group

  • Buy Now Pay Later Gross Merchandise Share by Income

  • Buy Now Pay Later Gross Merchandise Value Share by Gender

  • Buy Now Pay Later Adoption Rationale Gross Merchandise Value Analysis

Companies Mentioned

  • Klarna

  • Clearpay

  • Laybuy

  • Payl8r

  • Openpay

  • paypal

  • Zilch

  • Playter Pay

  • Zip

  • Divido

  • Perkbox

  • ezyVet

  • IKEA

  • AppToPay

For more information about this report visit https://www.researchandmarkets.com/r/2jcdkp

CONTACT: CONTACT: ResearchAndMarkets.com Laura Wood,Senior Press Manager press@researchandmarkets.com For E.S.T Office Hours Call 1-917-300-0470 For U.S./ CAN Toll Free Call 1-800-526-8630 For GMT Office Hours Call +353-1-416-8900