Buy now, pay later (BNPL) is currently one of the most popular payment options for ecommerce purchases and industry analysts expect an uptick in its adoption in the coming years. In 2022, it constituted 5% of the total global online transaction value, and this number is set to rise to 6% by 2026.

What about the buy now, pay later growth rate in the United States, where the number of BNPL users is set to hit 88.2 million this year? Here’s a breakdown of the BNPL market growth rate in the US. 

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Buy now, pay later growth rate: 2023

Recent data from an analysis of the US buy now, pay later market size from 2023 to 2027 shows total payment volumes are forecast to hit $71.9 billion in 2023. This marks a 19.7% increase from the previous year. According to industry analysts, these figures show that the usage of the payment service continues to climb despite mounting losses by several BNPL companies. 

The data also shows that the US BNPL market growth this year is largely driven by younger consumers, among whom BNPL penetration is the highest. According to the numbers, 28.9% of Gen X consumers will use the payment method in 2023. In 2019, this figure was 3.3%, marking a 25.6 percentage point increase.

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The older generation is also proving to be no stranger to the buy now, pay later payment service. In 2019, just 0.6% of baby boomers used it for online purchases, and this is expected to rise to 13% this year.

Buy now, pay later growth rate: 2024–2027

The US BNPL growth rate is set to slow in 2024, as total payment values increase by 12.3%, to $80.8 billion. An 8.1 percentage point rise in growth rates is forecast for 2025, as a 20.4% annual increase takes the market size to $97.3 billion. This is also the largest yearly rise expected between 2023 and 2027.

In 2026, the US buy now, pay later growth rate is predicted at 14.7%. Despite the slight deceleration, it will be enough to propel the overall payment value across the $100 billion mark, as total volumes hit $111.6 billion. 

A BNPL market growth rate of 11.9% is forecast for 2027—the smallest annual rise in the forecast period. 

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