Market Size of Australia Buy Now Pay Later Services Industry
| Study Period | 2020 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Historical Data Period | 2020 - 2022 |
| CAGR | > 10.00 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Need a report that reflects how COVID-19 has impacted this market and its growth?
Australia Buy Now Pay Later Services Market Analysis
Due to the economic consequences of COVID-19, consumers are less likely to spend their money on apparel and accessories, with many people expecting a continual decline in household income in the coming months. As a result, many companies are struggling to make sales and the 'buy-now, pay-later' (BNPL) model has been increasingly popular.
Buy now, pay later (BNPL) solutions, which allow consumers to pay in interest-free installments, fixed payment schedule, zero-interest, and fast approval options for customers looking to make purchases. This allows customers to spend more than they can with other payment methods. Research shows that 54% of younger Australians are turned off by the high-interest rates of credit cards, causing them to seek other means of lending. Access to interest-free lending heralded the rise of BNPL popularity. Three-quarters of Australians used such services during the pandemic alone - 80% of which plan to continue using them in future. As debit card use continues to decline, merchants are having to swallow the higher costs of having BNPL in their payments mix.
The Buy Now Pay Later industry is forecast to continue growing over the next five years. Online retailing is projected to expand over the period, benefiting industry operators. The number of new users using buy now pay later (BNPL) services will likely increase, driving industry revenue growth. Over the next five years, consumers may come to expect BNPL payment options to be available when they purchase services or goods at retail stores.
