Australia Buy Now Pay Later Services Market Size (2024 - 2029)

The market size of the Buy Now Pay Later (BNPL) services in Australia is anticipated to expand significantly over the next five years. This growth is driven by the increasing preference for interest-free installment payments, particularly among younger consumers who are deterred by high credit card interest rates. The decline in debit card usage and the rising costs for merchants to integrate BNPL options further underscore the model's popularity. As online retail continues to grow, the number of users adopting BNPL services is expected to rise, leading to increased industry revenue and a consumer expectation for BNPL options in retail transactions.

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Market Size of Australia Buy Now Pay Later Services Industry

Asia Pacific Buy Now Pay Later Service Market Size
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

Asia Pacific Buy Now Pay Later Service Market Major Players

*Disclaimer: Major Players sorted in no particular order

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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.

Australia Buy Now Pay Later Services Industry Segmentation

The report offers a complete background analysis of the Australia Buy now Pay later market, including the analysis and forecast of market size, market segments, industry trends, major players, and growth drivers. The Australia Buy now Pay later market is segmented By Channel (Online and Point of Sale (POS)), By Enterprise (Large Enterprise, Small & Medium Enterprise), By End User Type (Consumer electronics, Fashion & Personal Care, Healthcare, Leisure & Entertainment, Retail, Others).

By Channel
Online
Point of Sale (POS)
By Enterprise
Large Enterprise
Small & Medium Enterprise
By End User Type
Consumer Electronics
Fashion and Personal Care
Healthcare
Leisure & Entertainment
Retail
Others
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Australia Buy Now Pay Later Services Market Size Summary

The Buy Now Pay Later (BNPL) services market in Australia has seen significant growth, particularly in the wake of the economic challenges posed by COVID-19. As consumers became more cautious with their spending, the BNPL model gained traction, offering interest-free installment payments and fixed schedules that appealed to those wary of traditional credit card interest rates. This shift in consumer behavior has led to a substantial increase in the adoption of BNPL services, with a notable portion of the population planning to continue using these options for future purchases. The decline in debit card usage has prompted merchants to integrate BNPL into their payment systems, despite the higher costs associated with these services. The market is expected to expand further, driven by the growth of online retailing and the increasing expectation among consumers for BNPL options at retail outlets.

The Australian BNPL market is supported by the rise in digital payment methods, facilitated by high-speed internet connectivity and widespread smartphone use. Non-cash payments dominate the Australian economy, with a significant portion of these transactions being high-value payments through the real-time gross settlement system. The market is moderately fragmented, with key players like Afterpay, Zippay, Openpay, Payright, Sezzle, and Paypal leading the charge. Strategic moves, such as Zip's acquisition of Sezzle and Visa's expansion of its BNPL offerings, highlight the competitive landscape and the ongoing evolution of the market. As more businesses, including small and medium-sized enterprises, adopt these digital payment solutions, the BNPL market is poised for continued growth, leveraging the increasing volume of digital transactions.

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Australia Buy Now Pay Later Services Market Size - Table of Contents

  1. 1. MARKET INSIGHTS AND DYNAMICS

    1. 1.1 Market Overview

    2. 1.2 Market Drivers

    3. 1.3 Market Restraints

    4. 1.4 Porter's Five Forces Analysis

      1. 1.4.1 Threat of New Entrants

      2. 1.4.2 Bargaining Power of Buyers

      3. 1.4.3 Bargaining Power of Suppliers

      4. 1.4.4 Threat of Substitutes

      5. 1.4.5 Intensity of Competitive Rivalry

    5. 1.5 Insights into Technological Advancements in the Industry

    6. 1.6 Impact of COVID-19 on the Market

  2. 2. MARKET SEGMENTATION

    1. 2.1 By Channel

      1. 2.1.1 Online

      2. 2.1.2 Point of Sale (POS)

    2. 2.2 By Enterprise

      1. 2.2.1 Large Enterprise

      2. 2.2.2 Small & Medium Enterprise

    3. 2.3 By End User Type

      1. 2.3.1 Consumer Electronics

      2. 2.3.2 Fashion and Personal Care

      3. 2.3.3 Healthcare

      4. 2.3.4 Leisure & Entertainment

      5. 2.3.5 Retail

      6. 2.3.6 Others

Australia Buy Now Pay Later Services Market Size FAQs

The Australia Buy Now Pay Later Services Market is projected to register a CAGR of greater than 10% during the forecast period (2024-2029)

Afterpay, Zippay, Openpay, Payright and Paypal are the major companies operating in the Australia Buy Now Pay Later Services Market.

Australia Buy Now Pay Later Services Report Snapshots

Australia Buy Now Pay Later Services Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)