United States Buy Now Pay Later Business and Investment Report 2025-2030: Affirm, Afterpay, Klarna, PayPal, Apple Pay Dominates Amid Expanding Bank-Backed Installment Programs - ResearchAndMarkets.com

The "United States Buy Now Pay Later Business and Investment Opportunities Databook - 75+ KPIs on BNPL Market Size, End-Use Sectors, Market Share, Product Analysis, Business Model, Demographics - Q3 2025 Update" report has been added to ResearchAndMarkets.com's offering.

The BNPL payment market in United States is expected to grow by 12.2% on annual basis to reach US$122.26 billion in 2025. The BNPL market in the country experienced robust growth during 2021-2024, achieving a CAGR of 20.3%. This upward trajectory is expected to continue, with the market forecast to grow at a CAGR of 8.5% during 2025-2030. By the end of 2030, the BNPL sector is projected to expand from its 2024 value of USD 109.00 billion to approximately USD 184.05 billion.

This report provides a detailed data-centric analysis of the Buy Now Pay Later (BNPL) industry in United States, covering market opportunities and risks across a range of retail categories. With over 75 KPIs at the country level, this report provides a comprehensive understanding of BNPL market dynamics, market size and forecast, and market share statistics.

The BNPL market in the U.S. is on a strong growth trajectory, driven by increasing consumer adoption, the expansion of e-commerce, and the diversification of BNPL applications beyond retail. As more consumers seek flexible payment solutions, BNPL providers are forming strategic partnerships with merchants and service providers to meet this demand.

The BNPL market in the U.S. is expanding rapidly, driven by consumer demand for flexible financing options and strong e-commerce growth. Leading players such as Affirm, Afterpay, and Klarna continue to dominate the space, forming key partnerships with retailers to increase accessibility. Recent strategic moves, including Affirm's multi-billion-dollar financing agreements and Apple's integration of Klarna into Apple Pay, highlight the market's competitive nature. These developments indicate that BNPL providers are securing long-term capital and strengthening their presence in digital payment ecosystems.

However, with increased regulatory scrutiny from the CFPB, BNPL providers must adhere to stricter consumer protection standards, including dispute resolution and refund processing requirements. While regulations aim to create a more secure and responsible BNPL ecosystem, they may also challenge providers to adapt their business models. As competition intensifies and regulations evolve, BNPL firms must innovate while maintaining compliance, ensuring long-term sustainability in the U.S. market.

Current State of the BNPL Market

• The BNPL market in the U.S. has expanded significantly, fueled by increasing consumer demand for flexible payment options and the continued rise of e-commerce. As shoppers look for alternatives to credit cards, BNPL has become a mainstream payment option, particularly among younger consumers and online shoppers.
• Leading providers such as Affirm, Afterpay (owned by Block, Inc.), and Klarna have established a strong foothold by partnering with major retailers to integrate BNPL options at checkout. These companies continue to expand their offerings across multiple sectors, including travel, electronics, and fashion. As competition intensifies, new entrants and traditional financial institutions are also exploring BNPL solutions, further shaping the industry's future.

Key Players and New Entrants

• The U.S. BNPL market is dominated by key players such as Affirm, Afterpay (owned by Block, Inc.), and Klarna, each securing strong partnerships with major retailers to offer installment payment solutions. These companies have expanded their services beyond traditional retail, integrating BNPL options into the travel, healthcare, and electronics sectors. Their widespread adoption has fueled the growth of BNPL as a mainstream payment method, particularly among younger consumers who seek flexible financing options.
• New entrants and financial institutions are increasingly entering the BNPL space to compete with established players and capture a share of the growing market. Traditional banks such as American Express and Citibank have introduced BNPL-style installment plans for credit cardholders, while fintech startups and payment platforms such as Apple Pay (through Klarna) and PayPal's "Pay in 4" continue expanding their BNPL offerings. As competition intensifies, providers focus on differentiating their services through lower fees, extended repayment periods, and seamless digital integration to attract and retain customers.

Recent Launches, Mergers, and Acquisitions

• Affirm's Financing Agreements: In January 2025, Affirm expanded its partnership with Liberty Mutual Investments, securing up to $750 million to bolster its consumer lending activities. This follows a $4 billion commitment from Sixth Street Partners in December 2024 to enhance Affirm's lending capacity over the next three years.
• Apple's Integration of BNPL Services: In October 2024, Apple incorporated Klarna's BNPL service into Apple Pay, providing users with interest-free installment options. This move came after Apple discontinued its Pay Later service, signaling a strategic shift towards partnering with established BNPL providers.

Outlook

• This rapid growth will likely drive increased competition among existing providers, leading to further innovation in BNPL offerings. Established players such as Affirm, Afterpay, and Klarna will continue to scale their services, while new entrants and traditional financial institutions will seek opportunities to capture market share.
• As BNPL adoption rises, providers are expected to diversify their offerings across industries such as travel, healthcare, and education to appeal to a broader consumer base. The market's expansion will also attract greater regulatory oversight, ensuring responsible lending and consumer protection. Over the next few years, BNPL firms must balance growth, compliance, and evolving consumer preferences to maintain a competitive edge in an increasingly crowded marketplace.

Regulatory Changes

• The Consumer Financial Protection Bureau (CFPB) introduced new regulations in May 2024, applying credit card-like protections to BNPL providers. One of the key provisions is dispute resolution, which requires BNPL lenders to investigate consumer disputes and temporarily pause payment obligations during the investigation process. This change ensures that consumers have greater protection against fraudulent or incorrect charges, bringing BNPL services in line with traditional credit card protections.
• Another critical regulatory update focuses on refund processing, mandating that BNPL providers credit refunds to consumers for returned products or canceled services. This requirement addresses a growing concern among BNPL users who previously faced challenges obtaining timely refunds, particularly when dealing with multiple parties, such as merchants and lenders. These measures aim to enhance transparency and create a more consumer-friendly BNPL ecosystem.
• The CFPB's approach to enforcement includes a transition period, during which BNPL lenders will not face penalties if they make a good faith effort to comply with the new regulations. This allows providers time to adjust their systems and policies while ensuring a smoother consumer transition. Over the coming months, the regulatory landscape for BNPL is expected to continue evolving, with further oversight likely as the industry expands and becomes a more significant part of the U.S. financial ecosystem.

Scope

United States BNPL Market Size and Spending Pattern

• Gross Merchandise Value Trend Analysis
• Average Value Per Transaction Trend Analysis
• Transaction Volume Trend Analysis

United States Buy Now Pay Later Revenue Analysis

• 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 States Buy Now Pay Later Operational KPIs & Statistics

• Buy Now Pay Later Active Consumer Base
• Buy Now Pay Later Bad Debt

United States BNPL by Purpose

• Convenience - Short Term Loans
• Credit - Long Term Loans

United States BNPL by Business Model

• Two-Party (BNPL offered by retailers)
• Three-Party BNPL Offering

United States BNPL by Merchant Ecosystem

• Open Loop System
• Closed Loop System

United States BNPL by Distribution Model Analysis

• Standalone
• Banks & Payment Service Providers
• Marketplaces

United States Buy Now Pay Later Market Share Analysis by Key Players

• PayPal
• Klarna
• Affirm
• Afterpay
• Sezzle
• Zip
• Splitit
• FuturePay
• Perpay
• Bread

United States BNPL Analysis by Channel

• Online Channel
• POS Channel

United States 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 States 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 States Buy Now Pay Later in Travel: Market Size and Forecast

• Gross Merchandise Value Trend Analysis
• Average Value per Transaction Trend Analysis
• Transaction Volume Trend Analysis

United States Buy Now Pay Later in Media and Entertainment: Market Size and Forecast

• Gross Merchandise Value Trend Analysis
• Average Value per Transaction Trend Analysis
• Transaction Volume Trend Analysis

United States Buy Now Pay Later in Services: Market Size and Forecast

• Gross Merchandise Value Trend Analysis
• Average Value Per Transaction Trend Analysis
• Transaction Volume Trend Analysis

United States Buy Now Pay Later in Automotive: Market Size and Forecast

• Gross Merchandise Value Trend Analysis
• Average Value Per Transaction Trend Analysis
• Transaction Volume Trend Analysis

United States 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 States Buy Now Pay Later in Others: Market Size and Forecast

• Gross Merchandise Value Trend Analysis
• Average Value Per Transaction Trend Analysis
• Transaction Volume Trend Analysis

United States 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
• Monthly Expense Segments

For more information about this report visit https://www.researchandmarkets.com/r/x1a5g3

About ResearchAndMarkets.com

ResearchAndMarkets.com is the world's leading source for international market research reports and market data. We provide you with the latest data on international and regional markets, key industries, the top companies, new products and the latest trends.

View source version on businesswire.com: https://www.businesswire.com/news/home/20251126736656/en/