BNPL market seen reaching $66.7 billion by 2034

By AI, Created 10:08 AM UTC, May 20, 2026, /AGP/ – IMARC Group projects the global buy now pay later market will grow from $11.6 billion to $66.7 billion by 2034, driven by e-commerce expansion, flexible payment demand and wider digital finance adoption. The report also highlights AI’s growing role in credit checks, fraud detection and personalized offers.

Why it matters: - The buy now pay later market is moving from a niche checkout option to a larger consumer finance tool. - Rapid growth could reshape how merchants convert shoppers and how consumers finance retail, travel and essential purchases. - AI is becoming a core operating layer for BNPL providers, especially in underwriting, fraud control and personalization.

What happened: - IMARC Group published a new market report on the global buy now pay later market. - The report values the market at $11.6 billion now and projects it will reach $66.7 billion by 2034. - IMARC Group expects a 20.75% compound annual growth rate from 2026 to 2034. - The company links the outlook to e-commerce expansion, demand for flexible payments and broader adoption of digital financial services. - IMARC Group also posted a sample report request link: Download a sample PDF.

The details: - BNPL lets consumers split purchases into smaller installments. - The report says shoppers are using BNPL for retail purchases, travel bookings, healthcare expenses and lifestyle products. - BNPL has become a preferred alternative to traditional credit cards because of quick approvals, convenience and transparent repayment structures. - Smartphone adoption, digital wallets and fintech apps are accelerating usage worldwide. - Retail and e-commerce are the biggest BNPL adopters, especially in fashion, electronics, beauty, home furnishings and travel bookings. - Merchants are adding BNPL at checkout to raise conversion rates, increase average order values and cut cart abandonment. - North America holds nearly 38.5% of the global market share. - The region leads because of digital payment adoption, a strong fintech ecosystem and high consumer credit usage. - Asia Pacific is one of the fastest-growing regions. - Growth in Asia Pacific is tied to online retail expansion, a growing middle class and higher internet penetration in China, India and Southeast Asia. - The Asia Pacific e-commerce market has passed $2 trillion in transaction value. - Governments and financial institutions are supporting digital finance infrastructure, which favors BNPL expansion. - Strategic partnerships between fintech companies, banks and retailers are speeding up installment-payment innovation. - The global digital payments market is projected to exceed $16 trillion by 2030. - The report says BNPL is among the fastest-growing payment categories. - The market is segmented by channel, enterprise size, end user and region. - Online and point-of-sale are the main channels. - Online channels dominate because of e-commerce growth and consumer preference for digital payments. - Large enterprises hold the largest market share among business sizes. - Major retailers and global e-commerce companies are embedding BNPL into payment systems. - Retail accounts for most of the end-user share. - Consumer electronics, fashion and garment, healthcare, leisure and entertainment, and retail are included in the end-user breakdown. - North America, Europe, Asia Pacific, Latin America and the Middle East and Africa are the regional segments. - The report profiles Affirm Inc., Afterpay Pty Ltd. (Block Inc.), Billie GmbH, Klarna Bank AB, LatitudePay Australia Pty Ltd., Laybuy Holdings Limited, LazyPay Private Limited (PayU), Openpay Group, Payl8r, PayPal Holdings Inc., Splitit Payments Ltd. and Zip Co Limited. - The report covers market size and revenue forecasts, growth drivers and restraints, segment and regional insights, competitive landscape, consumer behavior, regulation and emerging technology. - Ask an analyst for a customized report.

Between the lines: - The forecast suggests BNPL demand is being pulled by both consumer convenience and merchant economics. - The AI section points to a broader shift: lenders are using alternative data and automation to make faster decisions and manage risk at scale. - The geographic split shows mature BNPL use in North America and faster upside in markets where digital commerce is still expanding. - The report’s company examples show continued competition between standalone BNPL providers and larger payments platforms.

What’s next: - IMARC Group expects BNPL adoption to keep rising as online shopping, digital wallets and fintech use spread. - AI-enabled credit scoring and fraud prevention are likely to become standard features across BNPL platforms. - Merchant partnerships and regional expansion should remain major growth paths for leading providers. - The report lists recent market moves from Klarna, Affirm, PayPal and Afterpay, signaling that competition is still focused on partnerships, new markets and technology upgrades.

The bottom line: - BNPL is projected to grow fast through 2034, with AI and digital commerce driving the next phase of expansion.