Europe Buy Now Pay Later Markets Report 2022: German-based BNPL Startups are Raising Funds to Accelerate their International Expansion

DUBLIN, Feb. 16, 2022 /PRNewswire/ -- The "Europe Buy Now Pay Later Business and Investment Opportunities - 75+ KPIs on Buy Now Pay Later Trends by End-Use Sectors, Operational KPIs, Market Share, Retail Product Dynamics, and Consumer Demographics - Q1 2022 Update" report has been added to ResearchAndMarkets.com's offering.

According to the Q4 2021 BNPL Survey, BNPL payment industry in the region is expected to grow by 54.7% on annual basis to reach US$ 171794.2 million in 2022.

BNPL payment industry in Europe has recorded strong growth over the last four quarters, supported by increased ecommerce penetration along with impact of economic slowdown due to disruption caused by Covid-19 outbreak.

Medium to long term growth story of BNPL industry in Europe remains strong. The BNPL payment adoption is expected to grow steadily over the forecast period, recording a CAGR of 30.8% during 2022-2028. The BNPL Gross Merchandise Value will increase from US$ 111046.3 million in 2021 to reach US$ 860409.8 million by 2028.

In Europe, buy now, pay later BNPL is becoming increasingly popular among consumers owing to the rise in consumer preference for deferred payment for online purchases. Consumers prefer BNPL due to the affordability and convenience it offers. BNPL, consumer credit, or after pay enables consumers to pay money only after meeting their expectations. Some key players offering BNPL service include Klarna, PayPal Credit, and Splitit in the region.

Among countries in Europe, BNPL is more popular in the United Kingdom as compared to other nations, including Italy or Germany. Shoppers in the United Kingdom observe retail finance as a convenient way to split the cost of expensive purchases. However, in Germany, open invoices or pay after delivery is a popular payment method. In Germany, RatePay provides checkout lending solutions and open installments for e-commerce. Other key players in the Western European market include Divido, Mash, CreditClick, and AfterPay.

The BNPL has become a widely accepted payment method for both retailers and consumers alike in the United Kingdom. For two consecutive years, BNPL has been the fastest-growing online payment method in the country, and despite the threat of regulatory intervention by the Financial Conduct Authority (FCA), the publisher expects the trend to continue over the next four to six quarters.

Traditional banks are forging a strategic partnership with online retailers to launch BNPL products in the United Kingdom

To push into the booming BNPL market of the United Kingdom, traditional banking firms are forging strategic alliances with online retailers in the country.

• In December 2021, Barclays announced that the firm had entered into a strategic collaboration with Amazon to launch a new BNPL product for online shoppers in the country. The BNPL service, known as Instalments, will allow Amazon shoppers the option to spread the cost of their purchases over multiple installments.
• The launch of the product came at a time when more than 15 million consumers across the country had the split payment service. Notably, Barclays and Amazon also partnered to launch a similar BNPL product for consumers in Germany.

As the payment method continues to gain more ground among young shoppers in the country, the publisher expects more traditional banking firms to build strategic alliances with online and offline retailers in the country over the next four to eight quarters.

Fintech startups are entering the BNPL market with niche product offerings

The exponential growth of the BNPL firms has been one of the biggest fintech trends over the last four to eight quarters. With the sector expected to continue its robust growth, new fintech players are jumping on the BNPL bandwagon in the United Kingdom.

• In December 2021, PollenPay, the British BNPL startup, announced the launch of its deferred payment services for consumers in the country. Unlike other existing BNPL firms, PollenPay offers consumers a responsible approach to BNPL transactions. It allows consumers to amend payment schedules if they fall into financial hardship. According to PollenPay, the new BNPL scheme has gained interest from various retailers across the country.

As the popularity of the BNPL schemes continues to grow among consumers and merchants across the country, the publisher expects more new players to enter the BNPL market in the United Kingdom over the next four to eight quarters.

Strategic partnerships are rising to launch BNPL payment option for flight travelers in France

As traveling activities regain momentum in the country, airlines are entering into strategic partnerships with BNPL providers to offer travelers with flexible monthly payment options.

• In July 2021, Air Tahiti entered into a strategic partnership with Fly Now Pay Later provider, Uplift. Under the collaboration, travelers booking Air Tahiti can pay in installments using the BNPL payment method offered by Uplift. Notably, Uplift has partnered with more than 200 airlines globally to offer its BNPL payment method to travelers around the world.

The publisher expects more such strategic partnerships between BNPL providers and airlines in France over the next four to eight quarters, which will subsequently assist the growth of the overall BNPL market from the short to medium-term perspective.

German-based BNPL startups are raising funds to accelerate their international expansion

The global BNPL market is expected to record robust growth from the short to medium-term perspective. Consequently, to capitalize on this high-growth potential in the global BNPL segment, German-based startups are raising funds to accelerate their international expansion.

• In October 2021, Billie, the Berlin-based BNPL startup, announced that the firm had raised about €86.2 million in its Series C funding round at a valuation of €551.5 million. Notably, the €86.2 million funding round is one of the largest globally in the B2B BNPL segment. In line with its vision, the firm is planning to use the new capital for its international expansion.

Scope

BNPL Market Size and Spending Pattern

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

Buy Now Pay Later Operational KPIs

• Buy Now Pay Later Revenues, 2019 - 2028
• Buy Now Pay Later Share by Revenue Segments
• Buy Now Pay Later Merchant Commission, 2019 - 2028
• Buy Now Pay Later Missed Payment Fee Revenue, 2019 - 2028
• Buy Now Pay Later Pay Now & Other Income, 2019 - 2028
• Buy Now Pay Later Accounts, 2019 - 2028

Buy Now Pay Later Spend Analysis by Channel: Market Size and Forecast

• Online Channel
• POS Channel

Buy Now Pay Later Spend Key Players

• Afterpay
• Alma
• Arvato Financial Solutions - Afterpay
• Bill Pay
• Billink
• Cashper
• Clearpay
• Halva
• Humm
• Klarna
• Klarna
• Laybuy
• Littlewoods
• Mash
• Mash and Domec JV
• Openpay
• Payl8r
• Paypal
• PFC
• RatePay
• Revo
• Scalapay
• ScalePay
• Splitit
• Sweetpay
• Sweetpay
• Tinkoff
• Viabill

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

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

Buy Now Pay Later in Leisure & Entertainment: Market Size and Forecast

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

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

Buy Now Pay Later in Other: Market Size and Forecast

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

For more information about this report visit https://www.researchandmarkets.com/r/21pbsf

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