Buy Now, Pay Later has exploded in popularity in recent years, with the likes of Afterpay and Zip becoming retail giants. At least that’s what you might’ve heard.
But how popular really is Buy Now, Pay Later? Who uses it, and how much are they spending? And perhaps most importantly, are they using it responsibly and paying their bills on time?
To find out, we’ve broken down the most important statistics you might want to know about Buy Now, Pay Later in Australia, such as:
And more. We’ve compiled this information based on Compare the Market’s Bill Shock Tracker survey1, as well as various other sources.
According to our data, women are slightly outspending men on BNPL platforms:
BNPL is predominantly used by younger generations, with those aged 34 and under spending more on average than all other age groups:
Gen Zs, who sit in the 18-24 age bracket, spend much more on average than any other age group.
Which state spends the most on purchases made with BNPL? Looking at our data, it’s NSW shoppers who comfortably spend the most:
Not paying off BNPL debts on time can lead to late fees and in our findings, Buy Now, Pay Later bills were the fourth most forgotten about bill identified in the Bill Shock Tracker, and ranked higher than credit cards, car insurance and other general bills.
Of the 29% of Australians who had forgotten a bill in a three-month period, 18% said Buy Now, Pay Later debts were one of them.
Men are more forgetful when it comes to remembering BNPL repayments, despite women spending more as shown above:
According to an ASIC review of Buy Now, Pay Later arrangements in 2020, in the 2018-19 financial year:
In the 2018–19 financial year, it was under-35s who were the most notorious for being charged late fees, while 45–54-year-olds were the best.
The revenue gained from missed payment fees seems to be growing. In 2018-19:
The overall number of missed payment fees however, seems to be going down. In the six months from January 2020 to June 2020, the percentage of charged late fee transactions fell from more than 10% to 2.40%.
This trend also appears in Afterpay’s 2021 annual report5:
New Buy Now, Pay Later providers are seemingly popping up every day, and there’s now enough to make a top 10 for the biggest BNPL platforms by the number of customers they have.
We combed through various financial reports to find the 10 with the most active customers.*
*An active customer is defined as making a transaction within a 12-month period. According to the Reserve Bank, only about 3% of those make a transaction at least once per week.
Image via Shutterstock
*Compare the Market commissioned PureProfile to survey 1,501 Australian adults in September 2021. Responses required a minimum of 30 responses to be included in results.