The global ‘Buy Now, Pay Later’ (BNPL) market is expected to expand from $486 billion in 2024 to $825 billion in 2029, according to Research and Markets.

The Buy Now Pay Later Business Report 2024-2029 revealed that unbanked and underbanked consumers are driving adoption in regions like Latin America and Africa, while higher inflation and the cost-of-living crisis are fueling increased usage in Europe.

Growing consumer adoption, particularly among millennials, and the integration of BNPL services into e-commerce platforms are also key drivers of the market’s medium- to long-term growth.

For example, the report noted that key players like Visa are expanding their BNPL offerings globally by partnering with financial institutions to improve access to installment payment solutions.

According to the report, these developments suggest strong growth in the BNPL sector, with both new entrants and established companies innovating to meet consumer demand in a rapidly evolving digital landscape.

It also said that recent regulatory developments indicate a global shift toward greater oversight and consumer protection in the BNPL sector, although specifics and timelines differ across regions, potentially boosting consumer confidence and consumer use.

For example, the US Consumer Financial Protection Bureau (CFPB) issued an interpretive rule in May 2024, requiring BNPL lenders to comply with certain credit card rules under Regulation Z, including provisions for billing error resolution and limits on liability for unauthorized use.

The findings of increased growth in the BNPL market come as a report by the Federal Deposit Insurance Corporation found that 4% of all households used BNPL in the past 12 months.

In addition, 11% of American consumers plan to use the option to cover their expenses for the upcoming holiday season, according to a CNET survey.