Market Structure and Factors Associated with Revenue Performance of Buy-Now-Pay-Later Providers

Buy now, pay later (BNPL) represents an emerging form of deferred payment that enables consumers to divide purchases into interest-free installments, gaining rapid adoption alongside the expansion of e-commerce and marketing targeted at younger, lower-creditworthiness consumers. While BNPL improves accessibility and user experience, limited regulatory oversight and soft credit check raise concerns about over-indebtedness and potential risks to financial stability. This study analyzes the global BNPL market by constructing a comprehensive provider-level database (N = 149). Firm characteristics are examined alongside service-specific features. Descriptive statistics, as well as Mann-Whitney and Kruskal-Wallis tests, are used to assess differences across providers using revenue rank as a proxy for revenue performance. Findings indicate that BNPL providers are concentrated in Europe and North America but operate worldwide, with most firms remaining small and early-stage. Services predominantly target online commerce, conduct soft credit check, and rely largely on internal funding and merchant fees. The results further suggest that revenue performance is associated with the firm size and fee structures. The sustainability of BNPL firms depends on balancing growth, profitability, and effective credit risk management, while their long-term viability will be influenced by evolving regulatory frameworks and the adoption of responsible business practices.