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United Kingdom Buy Now Pay Later Business Report 2026: A $106.45 Billion Market by 2031 from $48.56 Billion in 2026 - Klarna Leads App Engagement, Monzo, Revolut, Barclays Expand Instalment Offerings

globenewswire.com
PYPL Mentioned as a capitalized player expected to benefit from regulatory shifts and expand offerings in the UK BNPL market, suggesting a stable but concentrated future. BCS Mentioned as a bank expanding instalment offerings in response to BNPL demand in the UK, indicating a shift towards regulated players in a consolidating market.

Dublin, Feb. 03, 2026 (GLOBE NEWSWIRE) -- The "United Kingdom Buy Now Pay Later Business and Investment Opportunities Databook - 90+ KPIs on BNPL Market Size, End-Use Sectors, Market Share, Product Analysis, Business Model, Demographics - Q1 2026 Update" report has been added to ResearchAndMarkets.com's offering.

The BNPL payment market in United Kingdom is expected to grow by 20.7% on annual basis to reach US$48.56 billion in 2026. The buy now pay later market in the country has experienced robust growth during 2022-2025, achieving a CAGR of 24.9%. This upward trajectory is expected to continue, with the market forecast to grow at a CAGR of 17.0% from 2026-2031. By the end of 2031, the BNPL sector is projected to expand from its 2025 value of USD 40.22 billion to approximately USD 106.45 billion.

Over the next 2-4 years, competitive intensity is expected to shift towards regulated and capitalised players, such as banks, PayPal, and Klarna, which benefit from compliance infrastructure and diversified revenue streams. Retailers will likely consolidate BNPL partners through PSP-led integrations, reducing fragmentation. Regulation will create higher entry barriers, limiting the number of new standalone providers and supporting a more stable, but concentrated, BNPL landscape.

Current State of the Market

Key Players and New Entrants

Key Trends and Drivers

Regulatory scrutiny is formalising BNPL into mainstream consumer credit

Banks are expanding instalment offerings to respond to BNPL demand

Retailers are reassessing BNPL placement due to cost pressures and regulatory expectations

Consumer behaviour is shifting toward instalments for budgeting rather than discretionary spending

Key Attributes:

Report Scope

United Kingdom Buy Now Pay Later Company Landscape

United Kingdom Retail Industry & Ecommerce Market Size and Forecast

United Kingdom Buy Now Pay Later Market Size and Industry Attractiveness

United Kingdom Buy Now Pay Later Revenue Analysis

United Kingdom Buy Now Pay Later Operational KPIs

United Kingdom Buy Now Pay Later Spend Analysis by Business Model

United Kingdom Buy Now Pay Later Spend Analysis by Purpose

United Kingdom Buy Now Pay Later Spend Analysis by Merchant Ecosystem

United Kingdom Buy Now Pay Later Spend Analysis by Distribution Model

United Kingdom Buy Now Pay Later Spend Analysis by Channel

United Kingdom Buy Now Pay Later By End-Use Sector: Market Size and Forecast

United Kingdom Buy Now Pay Later By Retail Product Category: Market Size and Forecast

United Kingdom Buy Now Pay Later Analysis by Consumer Attitude and Behaviour

For more information about this report visit https://www.researchandmarkets.com/r/2r7qma

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ResearchAndMarkets.com is the world's leading source for international market research reports and market data. We provide you with the latest data on international and regional markets, key industries, the top companies, new products and the latest trends.

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