2022 – Buy Now, Pay Later: Market Trends in E-Commerce Finance, Consumer Credit and the BNPL Industry

Buy Now, Pay Later (BNPL) solutions, which allow consumers to pay in interest-free installments, are growing in popularity as people look for alternative ways of financing – a trend exacerbated by the coronavirus pandemic. With the growth of the market comes the increasing competition between financial services companies.

BNPL solutions are becoming increasingly popular as people search for alternative financing methods.

Below, Insider Intelligence details how some of these companies are performing and the business models they use to thrive in a changing market.

Ecommerce Finance Growth During COVID

The coronavirus pandemic has accelerated the growth of the e-commerce market, which in turn has increased the demand for easy online financing options. Since BNPL products originally came from online shopping, the rise of e-commerce has increased the reach of these sellers.

The rise of e-commerce amid the pandemic has led to the growth of the BNPL market.

The pandemic has left millions of consumers unemployed and financially insecure, requiring more flexibility in their purchases. On the other hand, many consumers have already paid off their debts during the crisis, making interest-free BNPL solutions an attractive alternative to accumulating another large credit card balance.

Buy now, pay later in the market

The BNPL industry has modernized its installment and installment payments processes to give consumers flexible payment options for their purchases. Compared to credit cards, which are meant to be used over and over, BNPL solutions are applied to individual transactions – which attract consumers who want lower financial commitments, even for low-cost ticket items.

The impact of the pandemic and the general rise in the popularity of BNPL will see the industry amassing $680 billion in transaction volume globally by 2025. This forecasts a compound annual growth rate (CAGR) of 13.23% versus the $285 billion the industry should see in 2018.

While some BNPL solutions are available in-store, they are authentic to e-commerce checkout, making them widely available when shopping online. And with e-commerce sales growing at 44.4% year-on-year in the second quarter of 2020, more consumers may decide to use BNPL solutions more regularly if they haven’t already.

Types of BNPL

As companies compete for a share of this booming market, they are seeing a range of approaches to adopting BNPL products and solutions.

direct provider

Direct service providers are at the heart of the rise of BNPL solutions in the US and are better positioned to benefit as the industry evolves. They offer BNPL products at Point of Sale (POS) and are the companies most responsible for the growing profile of the industry.

Confirm savings
Afirm is the best direct provider of BNPL.

Examples of companies are:

  • Sure
  • extra payment
  • Clara


Brokers are large payment companies with well-established business relationships that want to take advantage of the growing interest in direct provider solutions. It enables their agent networks to offer BNPL solutions from direct service providers to become part of the BNPL ecosystem.

Examples of companies are:

  • Master Card Credit Card
  • Shopify
  • Strips

Retroactive sellers

Amex rose gold card
Amex is one of the retrospective leaders in the BNPL market.

Providers retroactively offer financing options that consumers can later use for all purchases made with their credit cards. These financing providers, most of whom are issuers, offer flexible post-purchase payment options.

Examples of companies are:

  • American Express
  • Chase

BNPL Companies and Service Providers

Fintech companies and large financial institutions are all vying for market share, and here are some of the best buy now and pay later:

  • Sure
  • extra payment
  • Alliance data
  • American Express
  • Chase
  • city
  • Master Card Credit Card
  • c. B. Morgan Chase
  • Clara
  • PayPal
  • Quadrilateral
  • sezzle
  • Shopify
  • post it
  • Strips
  • TSYS
  • visas
  • Zipper

Buy now, pay later for industry analysis

The economic fallout from the coronavirus pandemic is prompting millions of consumers to turn to digital finance, and there are already signs that some companies will outpace others and take a larger market share. With e-commerce, the needs of customers are also increasing.

The “Buy Now, Pay Later” report from Insider Intelligence details the major BNPL players, market trends and game-changing business models likely to take the lead in the United States.

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