In this article, we discuss the 5 biggest BNPL companies in the world. If you want to read about some more BNPL companies, go directly to 11 Biggest BNPL Companies In The World.
5. Klarna
Estimated Valuation: $7 Billion
It has been reported that more than 147 million people used Klarna for digital payments in the year 2021. Klarna, by facilitating customers to pay for products and services in a series of installments, has become the leading BNPL companies in the world. The firm is based in Sweden and was founded in 2005. It operates a Swedish version of the popular PayPal app.
4. Grab Holdings Limited (NASDAQ:GRAB)
Market Capitalization: $11 Billion
Grab Holdings Limited (NASDAQ:GRAB) provides superapps that allows access to mobility, delivery, financial services, and enterprise offerings through its mobile application. It is a Singapore-based technology company which not only offers transportation services and food delivery services, but also digital payments services via its mobile app. The app, named Grab, currently operates in Singapore, Malaysia, Cambodia, Myanmar, the Philippines, Indonesia, Thailand and Vietnam. Grab is the largest BNPL company in Southeast Asia, offering digital payments services through its Grab Paylater. Grab Paylater app is being used by millions of users who use Grab super app for transportation services and ordering food. It is also called GrabPay, which is available in Malaysia, as one of the leading e-wallet providers, offering customers the convenience to pay for bills, food, everyday groceries, food, rides services, all through one integrated mobile app.
Among the hedge funds being tracked by Insider Monkey, Connecticut-based firm Tremblant Capital is a leading shareholder in Grab Holdings Limited (NASDAQ:GRAB) with 28 million shares worth more than $70.9 million.
3. Block, Inc. (NYSE:SQ)
Market Capitalization: $36 Billion
Block, Inc. (NYSE:SQ) creates tools that enable sellers to accept card payments and provide reporting and analytics and next-day settlement. The firm recently acquired Afterpay, an Australia-based financial technology company which is known for its BNPL services. The company was founded in 2014 and has expanded operations in Australia, US, UK, Canada, and New Zealand over the years. The company works on the model of providing facilitation to customers in online payments. Afterpay allows in-store and online customers to make a purchase immediately and pay through four equal fortnightly repayments which are interest-free. The company has announced that it will enter the US, which is a $1.5 trillion global subscription payments market, by offering customers payment installments for subscriptions, like gym memberships, entertainment subscriptions and online services.
Among the hedge funds being tracked by Insider Monkey, St. Petersburg, Florida-based investment firm ARK Investment Management is a leading shareholder in Block, Inc. (NYSE:SQ) with 9.2 million shares worth more than $505.5 million.
In its Q2 2022 investor letter, Baron Funds, an asset management firm, highlighted a few stocks and Block, Inc. (NYSE:SQ) was one of them. Here is what the fund said:
“Block, Inc. (NYSE:SQ) provides point-of-sale technology to small businesses and operates the Cash App ecosystem of financial services for individuals. Shares fell due to mixed quarterly results with more modest growth in the Seller business offsetting strength in Cash App. While the integration of recently acquired Afterpay is progressing well and credit metrics remain healthy, the buy-now-pay-later business slowed due to greater competitive intensity. We continue to own the stock due to Block’s long runway for growth, sustainable competitive advantages, and unique corporate culture.”
2. PayPal Holdings, Inc. (NASDAQ:PYPL)
Market Capitalization: $78 Billion
PayPal Holdings, Inc. (NASDAQ:PYPL) operates a technology platform that enables digital payments on behalf of merchants and consumers worldwide. The company has 430 million active accounts in more than 200 markets worldwide. Since the global pandemic, the BNPL activities of the firm have increased dramatically and given a strong momentum to Paypal to increase the customer and merchant network all around the world. The company has reported that 68% of millennial and Generation Z shoppers have used PayPal and 75% of the Paypal BNPL users are repeat users.
Among the hedge funds being tracked by Insider Monkey, Camas, Washington-based investment firm Fisher Asset Management is a leading shareholder in PayPal Holdings, Inc. (NASDAQ:PYPL) with 17.7 million shares worth more than $1.5 billion.
In its Q2 2022 investor letter, Mayar Capital, an asset management firm, highlighted a few stocks and PayPal Holdings, Inc. (NASDAQ:PYPL) was one of them. Here is what the fund said:
“This quarter, we bought shares in PayPal (NASDAQ:PYPL), the payments platform. PayPal has been one of the more high-profile victims of the market’s brutal ruthlessness over the past few months, and the stock fell by over two-thirds between its peak in July to the beginning of March this year. As we progressed PayPal through the Mayar Checklist Process, we identified a business with a leadership position in a structurally growing market.
The company benefits from certain network effects and faces several competitive threats at the same time. As the business profited from the move to online retail during the pandemic, as well as from the stimulus cheques handed out in the US, the stock price soared to absurd levels. As so often happens, however, the market had overcorrected by February and this quarter was offering prospective shareholders prices that assumed essentially zero growth in the business. When life gives you irrational sellers, make lemonade!”
1. Mastercard Incorporated (NYSE:MA)
Market Capitalization: $329 Billion
Mastercard Incorporated (NYSE:MA) is a technology company that provides transaction processing and other payment-related products and services. The main activity of the firm is to process payments between banks of merchants and the card issuing banks or credit unions of the purchases using MasterCard for making purchases. The company, founded in 1966, is globally recognized and known as the global pioneer in payment innovation. The company has achieved a strong momentum in BNPL services as the use of digital payments has increased dramatically in the recent years. It has been estimated that the number of users of MasterCard BNPL services in the US will increase from 45.1 million this year to 76.6 million in 2025, which makes it one of the largest BNPL companies in the world.
At the end of the third quarter of 2022, 137 hedge funds in the database of Insider Monkey held stakes worth $13.9 billion in Mastercard Incorporated (NYSE:MA), compared to 137 in the previous quarter worth $14.99 billion.
In its Q2 2022 investor letter, Baron Funds, an asset management firm, highlighted a few stocks and Mastercard Incorporated (NYSE:MA) was one of them. Here is what the fund said:
“The Fund’s holdings in the Payments and Information Services themes also contributed to relative performance. Within Payments, lower exposure to this lagging theme and outperformance of Mastercard Incorporated (NYSE:MA) added the most value. These global payment networks are viewed as safe havens during market downturns but are also benefiting from resilient payment volumes and a sharp rebound in international travel.”
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