BNPL market to hit $1.6t by 2034 on e-commerce and smartphone surge

The interest-free BNPL segment is expected to hit a CAGR of 23% through 2034.

The buy now pay later (BNPL) market is expected to be valued at $1.6t by 2034, according to estimates by Global Market Insights, a market research and consulting company.

A surging e-commerce sector is driving this growth, the company said, as well as increasing take-up of smartphones and internet connectivity.

“BNPL services allow consumers to split payments into smaller, manageable installments, reducing the financial strain associated with larger purchases,” it said.

The online segment dominated the BNPL market in 2024, generating $172.3b in sales.

The interest-free segment of BNPL is expected to log a compound annual growth rate (CAGR) of 23% between 2025 and 2034.

“Consumers are increasingly opting for interest-free payment options due to their ability to provide greater financial flexibility without the added burden of high interest charges,” Global Market Insights said.

Companies are responding by partnering with BNPL providers to offer attractive interest-free installment plans in order to foster greater customer loyalty and boost repeat purchases, it added.

Amongst countries, China’s BNPL market generated $21.3b in 2024, as BNPL services are integrated in major Chinese payment platforms, Global Market Insights said.