Europe Buy Now Pay Later Business and Investment Opportunities Report 2023-2028: Retailers are Banking on BNPL Payment Option to Drive Customer Engagement and Sales

DUBLIN, Sept. 22, 2023 /PRNewswire/ -- The "Europe 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 - Q2 2023 Update" report has been added to  ResearchAndMarkets.com's offering.

BNPL payments in the Europe are expected to grow by 18.2% on an annual basis to reach US$190,198.0 million in 2023.

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

It breaks down market opportunity by type of business model, sales channels (offline and online), and distribution models. In addition, it provides a snapshot of consumer behaviour and retail spend dynamics. KPIs in both value and volume term help in getting in-depth understanding of end market dynamics. 

Medium to long term growth story of BNPL industry in Europe remains strong. BNPL payment adoption is expected to grow steadily over the forecast period, recording a CAGR of 11.4% during 2023-2028. The BNPL Gross Merchandise Value in the Europe will increase from US$160,917.4 million in 2022 to reach US$326,230.2 million by 2028.

The growing competition between buy now pay later providers in the European market is reshaping the industry. In 2022, BNPL schemes became a household name amid the growing adoption, which has grown significantly in H2 2022 due to the surging cost of living and rising inflation. While Klarna has seen its valuation drop significantly, it has continued to maintain a strong foothold in the European BNPL industry.

Neo-banks, including Monzo and Revolut, has also forayed into the growing competitive landscape in Europe. With so signs of a market slowdown across Europe, the surging popularity of BNPL schemes is expected to keep shaping the digital payment ecosystem from the short to medium-term perspective. The European BNPL market is expected to receive growth assistance from the flourishing B2B BNPL segment.

Many of the leading venture capital and private equity firms are foreseeing growth in the space, and the publisher expects B2B BNPL to drive the next growth phase for the European BNPL industry over the next three to four years.

Europe-based BNPL startups are raising funding rounds to further expand and accelerate their growth

Despite the growing scrutiny of the BNPL business model in Europe, the payment method has continued to experience high adoption among consumers. This has resulted in rapid growth for fintech firms. To keep up their growth momentum and to further expand their presence in the region, Europe-based providers are raising funding rounds. For instance,

In December 2022, Bumper, a United Kingdom-based BNPL startup for vehicle repairs, announced that the firm had raised £26.1 in an extended Series A round. The investment round saw participation from ITOCHU, JLR Investment, and Revo Capital, among others. As the cost of living rises in Europe, more and more vehicle owners have turned to BNPL schemes for funding the repair of their cars. The firm had recorded strong growth in the United Kingdom and is on a similar growth trajectory in Ireland, Spain, and Germany.

From the short to medium-term perspective, the automotive-focused BNPL startup is planning to further expand its operations in more European countries, as a growing number of consumers seek flexible payment options for their vehicle repair services.

B2B BNPL is gaining strong traction across Europe

The macroeconomic environment has dampened the growth of various businesses across industry verticals. Moreover, the rise in interest rates means that access to capital has become even costlier for small and medium-sized businesses in Europe. As a result, more and more businesses are turning to B2B BNPL platforms to access working capital for funding inventories, among other things.

Billie, Playter, Hokodo, and Mondu are among the many B2B BNPL firms that have recorded strong growth over the last 12 months in Europe. All of these firms have also scored millions of dollars in venture capital and private equity funding in 2022, and the publisher expects the trend to further continue in 2023.

As central bank accounts hike interest rates, access to capital through traditional is expected to become costlier for small and medium-sized businesses. This will keep driving SMEs toward B2B BNPL providers, thereby supporting the growth of the industry from the short to medium-term perspective in Europe.

European retailers are banking on BNPL payment option to drive customer engagement and sales

The prominence of BNPL schemes has grown significantly over the last two years. Businesses are seeing the payment method as a potential way to drive customer engagement, thereby resulting in increased revenue and sales for the firm.

In November 2022, Carrefour, the French multinational retailer, announced that the firm is intending to launch a BNPL product for in-store transactions in 2023. The launch of the BNPL product is part of the firm's strategy to drive 2023 omnichannel customer engagement across Europe.

With the payment method becoming an integral part of business strategy, more businesses are expected to bank on BNPL schemes going forward. This will further drive in-store BNPL value and volume over the next three to four years, thereby assisting the growth of the overall market.

Europe Buy Now Pay Later Market Share Analysis by Key Players

• Klarna
• Afterpay
• Scalapay
• Bill Pay
• Klarna
• Cofidis
• Viabill
• Cashper
• Alma
• After Pay
• Paypal
• RatePay
• ScalePay
• Mash and Domec JV
• SplittyPay
• Billink
• Clearpay
• Mash
• PFC
• Sweetpay
• Zaver
• ZoodPay
• Paypal Credit
• Laybuy
• Openpay
• Finloup
• MelonPay
• TBI Bank
• Uplift
• Paypo
• Twisto
• Smartney
• Allegro Pay

Scope

Europe BNPL Market Size and Spending Pattern, 2019-2028

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

Europe Buy Now Pay Later Revenue Analysis, 2019-2028

• 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

Europe Buy Now Pay Later Operational KPIs & Statistics, 2019-2028

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

Europe BNPL by Purpose, 2019-2028

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

Europe BNPL by Business Model, 2019-2028

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

Europe BNPL by Merchant Ecosystem, 2019-2028

• Open Loop System
• Closed Loop System

Europe BNPL by Distribution Model Analysis, 2019-2028

• Standalone
• Banks & Payment Service Providers
• Marketplaces

Europe BNPL Analysis by Channel, 2019-2028

• Online Channel
• POS Channel

Europe Buy Now Pay Later in Retail Shopping: Market Size and Forecast, 2019-2028

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

Europe Buy Now Pay Later in Home Improvement: Market Size and Forecast, 2019-2028

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

Europe Buy Now Pay Later in Travel/Entertainment: Market Size and Forecast, 2019-2028

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

Europe Buy Now Pay Later in Services: Market Size and Forecast, 2019-2028

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

Europe Buy Now Pay Later in Automotive: Market Size and Forecast, 2019-2028

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

Europe Buy Now Pay Later in Healthcare and Wellness: Market Size and Forecast, 2019-2028

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

Europe Buy Now Pay Later in Groceries: Market Size and Forecast

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

Europe 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

For more information about this report visit https://www.researchandmarkets.com/r/f6aq48

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