BNPL payments in the United Kingdom are expected to grow by 17.8% on an annual basis to reach US$33.8 billion in 2023.
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 10.9% during 2023-2028. The BNPL Gross Merchandise Value in the United Kingdom will increase from US$28.7 billion in 2022 to reach US$56.8 billion by 2028.
The BNPL payment industry in United Kingdom has recorded strong growth over the last four quarters, supported by increased ecommerce penetration.
With the surging cost of living in the United Kingdom, more shoppers are turning to buy now pay later schemes to manage their cash flow. According to the publisher, over 36% of consumers have used BNPL more than once because of rising inflation and cost of living. Millennials and Gen Z consumers are the ones using the payment method more frequently.
The most popular category where consumers are using the payment method includes consumer electronics products, such as smartphones, TVs, and computers. This is followed by clothing, home improvement, and health and wellness products, among others. The growing usage of BNPL schemes, due to the cost of living, is also driving consumer debt in the United Kingdom.
The competition in the BNPL space has increased significantly over the last two years. To gain a competitive advantage and build brand loyalty, BNPL providers are moving beyond flexible payment schemes.
In November 2022, Klarna, one of the leading players in the United Kingdom BNPL industry, announced the launch of a search and compare tool within its app for consumers in the United Kingdom. The add-on feature will allow consumers to look out for the best deals when shopping online. The launch of the feature builds upon the acquisition of PriceRunner, a comparison-shopping service, which Klarna acquired in April 2022.
Over the last 12 months, Klarna has swiftly moved beyond flexible payment schemes to offer more and more features to its customers. The launch of the search and compare tool is part of the firm’s super app strategy through which Klarna aims to offer everything online experience to consumers within its app.
Firms are raising a funding round to support product development and onboard more merchants in the United Kingdom
Even though the BNPL sector has been under stringent regulatory scrutiny, the business model has continued to gain rapid momentum among both merchants and consumers. As a result of this growing demand, venture capital firms are also betting on players with strong fundamentals in the United Kingdom market.
In October 2022, Tymit, the United Kingdom-based BNPL firm, announced that the firm had raised US$26.7 million or £23 million in a Series A funding round, which was led by Frasers Group.
The firm is planning to use the freshly infused capital to further support its white-label BNPL product development and for onboarding more merchants in the country.
The consumer installment credit market has become increasingly competitive in the United Kingdom over the last few years. White-label solutions that enable merchants to offer their own BNPL service under their brand are expected to gain increasing traction from the short to medium-term perspective. Consequently, the publisher expects more venture capital and private equity firms to invest their dollars in firms like Tymit over the next three to four years.
This report provides a detailed data centric analysis of Buy Now Pay Later (BNPL) industry, covering market opportunities and risks across a range of retail categories. With over 75 KPIs at country level, this report provides a comprehensive understanding of BNPL market dynamics, market size and forecast, and market share statistics.
It breaks down market opportunity by type of business model, sales channels (offline and online), and distribution models. In addition, it provides a snapshot of consumer behaviour and retail spend dynamics in United Kingdom. KPIs in both value and volume term help in getting in-depth understanding of end market dynamics.
Reasons to buy
- Get a comprehensive understanding of market dynamics for Buy Now Pay Later: Identify market opportunities, major trends, and forecasting (2019-2028). Understand market trends through crucial KPIs like Gross Merchandise Value, Volume, and Average Value per Transaction, to stay ahead of the curve.
- Insights by end-use sectors: Evaluate new opportunities across multiple end-use sectors, and obtain market dynamics by end-use sectors in order to swiftly catch up with the latest and upcoming developments in BNPL markets.
- Market-specific strategies: Identify growth segments focused on specific opportunities, and analysing market-specific risks and important trends in the BNPL sector with our exclusive blend of quantitative forecasting and innovative insights.
- Gain knowledge of consumer attitudes and actions: This report identifies and interprets important Buy Now Pay Later KPIs, such as spend by age, gender, and income level, using data from a proprietary survey.
- Develop proactive and lucrative business strategies through market intelligence and forward-looking analysis of BNPL market spend and major opportunities in United Kingdom.
Scope
United Kingdom Buy Now Pay Later Market Share Analysis by Key Players
- Klarna
- Clearpay
- Laybuy
- Payl8r
- Openpay
- paypal
- Zilch
- Playter Pay
- Zip
- Divido
- Perkbox
- ezyVet
- IKEA
- AppToPay
United Kingdom BNPL Market Size and Spending Pattern, 2019-2028
- Gross Merchandise Value Trend Analysis
- Average Value Per Transaction Trend Analysis
- Transaction Volume Trend Analysis
United Kingdom Buy Now Pay Later Revenue Analysis, 2019-2028
- Buy Now Pay Later Revenues
- Buy Now Pay Later Share by Revenue Segments
- Buy Now Pay Later Revenue by Merchant Commission
- Buy Now Pay Later Revenue by Missed Payment Fee Revenue
- Buy Now Pay Later Revenue by Pay Now & Other Income
United Kingdom Buy Now Pay Later Operational KPIs & Statistics, 2019-2028
- Buy Now Pay Later Active Consumer Base
- Buy Now Pay Later Bad Debt
United Kingdom BNPL by Purpose, 2019-2028
- Convenience – Short Term Loans
- Credit – Long Term Loans
United Kingdom BNPL by Business Model, 2019-2028
- Two-Party (BNPL offered by retailers)
- Three-Party BNPL Offering
United Kingdom BNPL by Merchant Ecosystem, 2019-2028
- Open Loop System
- Closed Loop System
United Kingdom BNPL by Distribution Model Analysis, 2019-2028
- Standalone
- Banks & Payment Service Providers
- Marketplaces
United Kingdom BNPL Analysis by Channel, 2019-2028
- Online Channel
- POS Channel
United Kingdom Buy Now Pay Later in Retail Shopping: Market Size and Forecast, 2019-2028
- 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, 2019-2028
- Gross Merchandise Value Trend Analysis
- Average Value Per Transaction Trend Analysis
- Transaction Volume Trend Analysis
United Kingdom Buy Now Pay Later in Travel/Entertainment: Market Size and Forecast, 2019-2028
- Gross Merchandise Value Trend Analysis
- Average Value per Transaction Trend Analysis
- Transaction Volume Trend Analysis
United Kingdom Buy Now Pay Later in Services: Market Size and Forecast, 2019-2028
- Gross Merchandise Value Trend Analysis
- Average Value Per Transaction Trend Analysis
- Transaction Volume Trend Analysis
United Kingdom Buy Now Pay Later in Automotive: Market Size and Forecast, 2019-2028
- 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, 2019-2028
- Gross Merchandise Value Trend Analysis
- Average Value Per Transaction Trend Analysis
- Transaction Volume Trend Analysis
United Kingdom Buy Now Pay Later in Groceries: 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
- Sales Uplift by Product Category
- Share by Age Group
- Share by Income
- Share by Gender
- Adoption Rationale
Source: Silicon Canals
