Global B2B Buy Now Pay Later Market Projected to Exceed $199 Billion in 2024, With Europe Leading Growth Acceleration
The latest projections for the global B2B Buy Now Pay Later (BNPL) market indicate a significant growth trajectory, expected to surpass $199 billion by 2024. This growth is further fueled by the accelerated expansion anticipated in Europe, where the market is projected to experience steady growth over the forecast period.
With a compound annual growth rate (CAGR) of 27.4% forecasted for the period between 2024 and 2029, the adoption of B2B BNPL payment solutions is set to drive the market to new heights. The gross merchandise value in Europe is poised to increase from $149.3 billion in 2023 to a substantial $669.5 billion by 2029.
Europe is positioned as a frontrunner in the global B2B BNPL market growth, with a surge of new entrants and existing players expanding their foothold in the region. This trend is expected to continue into 2024, shaping a competitive landscape within the rapidly evolving sector.
In the coming years, global firms are projected to establish strategic partnerships and secure investments from venture capital and private equity entities. Additionally, the integration of artificial intelligence (AI) with B2B BNPL services is anticipated to witness significant growth in the medium term. Companies like actyv.ai in India have already leveraged AI to enhance their growth prospects successfully.
A notable development in the B2B BNPL sector is Amazon Business’s venture into this market through a strategic collaboration with Affirm. This move marks Amazon’s entry into providing BNPL services for business customers, following its success in offering consumer-focused BNPL solutions. The new B2B BNPL service, launched in partnership with Affirm, allows sole proprietor business clients to select Affirm at checkout and repay their purchases over a specified period, ranging from three to 48 months.
Furthermore, in response to the prevailing economic conditions characterized by rising inflation and interest rates, an increasing number of businesses in the United States are turning to BNPL providers for loans. This trend is expected to persist in the medium term, with businesses capitalizing on the growing market demand.
As the B2B BNPL sector gains momentum, providers are expanding their regional footprint to nurture business growth in 2024. With the cost of traditional credit escalating in 2023, small and medium-sized enterprises are increasingly relying on B2B BNPL services to fulfill their working capital needs. This trend is anticipated to drive a period of high growth in the market, prompting firms to broaden their geographical reach.
In the face of decelerating growth in the B2C segment, companies are diversifying into the B2B BNPL market by introducing innovative products globally. For instance, Mobikwik in India is gearing up to enter the B2B merchant lending domain by offering small and mid-sized loans to its existing merchants. Similarly, US-based companies like Koverly are launching B2B BNPL services for their business customers, catering to specific needs and enhancing convenience through tailored payment solutions.
As the B2B BNPL landscape evolves, firms are advancing their offerings to meet the evolving demands of businesses worldwide. The strategic forays into this sector and the technological innovations driving this growth underscore the resilience and adaptability of the global B2B BNPL market.
Source: [ResearchAndMarkets.com]
