A recent study on the most popular online payment methods suggests an increasing preference for the buy now, pay later (BNPL) payment plan among consumers—especially those located in North America. 

In 2022, 5% of all online purchases there were paid for using buy now, pay later services. This is expected to rise to 7% by 2026. The number of buy now, pay later users in the United States is also set to increase from 82.1 million in 2023 to 112.7 million by 2027. 

What sort of impact will this have on the buy now, pay later market size? Here’s a close look at the US BNPL market size and its growth.

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US BNPL market growth

According to a new report on the buy now, pay later market size, BNPL payment volumes are forecast to hit $80.8 billion in 2023. This represents a 12.3% annual increase from 2023’s $71.9 billion. This is also in line with the rising number of users of Klarna in the US, which is expected to hit 43.9 million this year.

The BNPL market growth is showing no signs of stopping. Sales volumes are projected to continue increasing over the years. In 2025, the buy now, pay later market size is expected to further expand by 20.4%, to reach a total of $97.3 billion. A further increase of 14.7% is forecast for 2026, with total sales volumes set to hit $111.6 billion, exceeding $100 billion for the first time. Industry experts predict that the US BNPL market’s growth is expected to sustain in 2027, rising by 11.9%, to $124.8 billion. 

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In other words, industry analysts predict that the US buy now, pay later market size will expand by double digits every year from 2023 to 2027. In this forecast period, the buy now, pay later market’s growth is set to register an average annual rate of 15.8%, marking an overall increase of 73.5%. The biggest rise is expected in 2025, while the smallest increase is set to come in 2027. 

BNPL market growth: biggest driver

Even though the BNPL payment option has been around for a long time, it has exploded in recent years. 

Experts attribute this to the COVID-19 pandemic, which they say triggered a shift in consumers’ shopping habits and edged them toward online shopping. Reports say this is especially so among younger shoppers who are jumping on the trend to finance high-ticket purchases.

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