The Italian Buy Now Pay Later Gross Merchandise Value is Expected to Reach $25.9 Billion by 2028

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Nov 02, 2022, 11:00 ET

DUBLIN, Nov. 2, 2022 /PRNewswire/ -- The "Italy 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 - Q3 2022 Update" report has been added to ResearchAndMarkets.com's offering.

According to the publisher, BNPL payments in the country are expected to grow by 52.8% on an annual basis to reach US$6,254.5 million in 2022.

Medium to long term growth story of BNPL industry in Italy remains strong. BNPL payment adoption is expected to grow steadily over the forecast period, recording a CAGR of 26.8% during 2022-2028. The BNPL Gross Merchandise Value in the country will increase from US$4,094.1 million in 2021 to reach US$25,988.0 million by 2028.

The buy now pay later (BNPL) industry continues to grow in Italy steadily. The presence of domestic and global players, like Scalapay and Afterpay (known as Clearpay in Europe), is driving the adoption of the payment method in Italians. While the pandemic outbreak and the subsequent shift to online shopping have accelerated the adoption of BNPL among shoppers in the country, there is plenty of growth room for both domestic as well as global players in Italy.

According to a March 2022 report from Clearpay, 56.1% of the Italians who are not aware of the payment method are interested in using a payment option that allows them to pay for purchases in installments. This shows that BNPL firms need to increase their investment in boosting consumer awareness regarding the availability of deferred payment services, as the demand is there in the Italian market. With domestic players raising big investment rounds in Italy, the publisher expects a part of the investment to boost consumer awareness from the short to medium-term perspective.

Over the next three to four years, the publisher expects the boom in online shopping to keep supporting the growth of the BNPL payment method. Moreover, the payment method is also expected to make inroads in Italy's travel and tourism sector from the short to medium-term perspective, a trend that is gaining rapid momentum around the world.

Domestic BNPL firms are raising funding rounds to invest in product development and branding

The Italian BNPL industry is still in its early stages of development and is expected to post strong growth from the long-term perspective. Consequently, domestic BNPL firms are looking to strengthen their position to capitalize on the market growth. As a result, these firms are raising funding rounds to invest in product development and branding. For instance,

In May 2022, Scalapay, one of the leading home-grown BNPL startups, announced that the firm had raised US$27 million in an extended Series B round, thereby taking its total funding in Series B to over US$500 million. Notably, the firm raised US$497 million in February 2022. The firm plans to use the funding round to further bolster its product development efforts and branding in the country. The Italy-based BNPL firm focused on e-commerce platforms, thereby allowing online shoppers to split their purchases in installments.

As the market continues to grow, the publisher expects more firms and startups to raise funding rounds to further strengthen their position in the market, which is projected to record strong growth over the next three to four years.

BNPL providers are expanding their presence in Italy through strategic collaboration with online marketplaces

To further increase the adoption of their BNPL product among Italian online shoppers, firms are entering into strategic collaborations with online marketplaces in the country. For instance,

In July 2022, Clearpay, the Australia-based BNPL provider, announced that the firm had entered into a strategic partnership with Postalmarket marketplace to provide the BNPL payment method to online shoppers in the country. This strategic collaboration will allow Italian shoppers to split their purchases in interest-free installments while driving revenue and sales growth for the online marketplace in Italy.

The publisher expects BNPL providers to keep partnering with online and in-store retailers over the next three to four years as the popularity of the deferred payment services continues to rise among Italians.

Travel operators are launching deferred payment services for commuters in Italy amid growing demand

Globally, the demand for the BNPL payment method has seen a strong uptick in the travel and tourism sector. This has led many travel-focused firms to launch deferred payment services. Notably, similar trends are visible in Italy, wherein travel operators are launching the BNPL option for commuters in the country. For instance,

In July 2022, Trenord, the Lombardia regional passenger operator, announced the launch of its BNPL functionality, which allows commuters to purchase tickets using the deferred payment option. Notably, the firm launched the service in partnership with Scalapay, one of the leading BNPL providers in the country.

Over the next three to four years, the publisher expects more travel-focused firms to launch BNPL services for commuters and travelers in Italy, further supporting the industry growth.

Scope

This report provides in-depth, data-centric analysis of Buy Now Pay Later industry in Italy. Below is a summary of key market segments:

Italy BNPL Market Size and Spending Pattern

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

Italy 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 Bad Debt, 2019 - 2028

Italy Buy Now Pay Later Market Share Analysis by Key Players

(Klarna, ScalePay, Mash and Domec JV, Afterpay, SplittyPay)

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

Online Channel
POS Channel

Italy 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

Italy 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

Italy 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

Italy 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

Italy 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

Italy Buy Now Pay Later Analysis by Consumer Attitude and Behaviour

Buy Now Pay Later Sales Uplift by Product Category
Buy Now Pay Later Spend Share by Age Group
Buy Now Pay Later Gross Merchandise Share by Income
Buy Now Pay Later Gross Merchandise Value Share by Gender
Buy Now Pay Later Adoption Rationale Gross Merchandise Value Analysis

Reasons to buy

In-depth Understanding of Buy Now Pay Later Market Dynamics: Understand market opportunities and key trends along with forecast (2019-2028). Understand market dynamics through essential KPIs such as Gross Merchandise Value, Volume, and Average Value Per Transaction.
Insights into Opportunity by end-use sectors - Get market dynamics by end-use sectors to assess emerging opportunity across various end-use sectors.
Develop Market Specific Strategies: Identify growth segments and target specific opportunities to formulate BNPL strategy; assess market specific key trends, drivers, and risks in the BNPL industry.
Get Insights into Consumer Attitude and Behaviour: Drawing from proprietary survey results, this report identifies and interprets key Buy Now Pay Later KPIs, including spend by age, gender, and income level.
Market Share by Key Players

For more information about this report visit https://www.researchandmarkets.com/r/9icwze

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