Summary

According to PayNXT360, BNPL payments in the country are expected to grow by 14.8% on an annual basis to reach US$16,844.1 million in 2024.

The medium to long-term growth story of the BNPL industry in the country remains strong. BNPL payment adoption is expected to grow steadily over the forecast period, recording a CAGR of 9.6% during 2024-2029. The BNPL gross merchandise value in the country will increase from US$14,668.8 million in 2023 to reach US$26,601.5 million by 2029.The buy now pay later industry is projected to grow at a steady pace over the medium term in Australia. Inflation continues to drive more shoppers towards flexible payment schemes offered by BNPL providers. The trend is much higher among young generation shoppers in the Australian market. In 2024, PayNXT360 expects more players to enter the market with their innovative products.

This will drive the competitive landscape in the sector over the next 12 months. To competition, existing providers are launching new features and services through strategic partnerships. Firms are also expected to raise venture capital and private equity funding over the medium term. Overall, PayNXT360 maintains a positive growth outlook for the buy now pay later industry in Australia over the next three to four years.

The adoption of buy now pay later schemes is rising among young generation Australian shoppers

With high inflation and interest rates eating into the disposable income of many across the country, the use of buy now pay later schemes has been on the surge over the last few quarters. The trend is especially growing among young generation shoppers, who are using the payment method for groceries and other essentials.

The report from the Reserve Bank of Australia revealed that 40% of shoppers, aged 18 to 39, are using the buy now pay later schemes in Australia. The report also revealed that a third of Australians, aged 18 and above, have used the payment method in the last 12 months, leading up to November 2023. While a few are using the BNPL method for luxury purchases, the majority are using it for essentials and as a vital financial management tool.

PayNXT360 expects the adoption of buy now pay later solutions to increase further in the Australian market over the medium term. This will support the growth of the industry over the next three to four years.

BNPL firms are forging strategic alliances to provide targeted offers to shoppers at checkout

To provide e-commerce shoppers with more relevant offers at checkout, while targeting higher gross merchandise volume, BNPL firms are entering into strategic partnerships in the Australian market.
• Afterpay, one of the leading Australian BNPL firms and a subsidiary of Block, announced a strategic partnership with Rokt, an e-commerce technology firm. As part of the collaboration, Afterpay aims to expand its ads business, while offering relevant offers to e-commerce shoppers at the checkout.
• Rokt, notably, makes use of machine learning and artificial intelligence to make transactions more personalized for e-commerce shoppers. Consequently, by leveraging the technical capabilities offered by Rokt, Afterpay aims to enhance the overall shopping experience for its users.

Afterpay, in another strategic partnership, joined forces with the Nift Network to enhance its service by launching a rewards program. In this collaboration, Nift's artificial intelligence technology is used to match Afterpay customers with a carefully chosen assortment of gifts from the 12,000 brands featured on the Nift Network. Going forward, PayNXT360 expects Afterpay to forge more such partnerships, enhancing shoppers' experience and aiding business growth.

Innovative BNPL startups are entering the market to tap into high-growth Australian market

With robust demand for BNPL solutions and the market poised for steady growth over the next three to four years, new startups are entering the market with their innovative products in Australia.
• AtPay, a BNPL service utilizing decentralized finance (DeFi), is gearing up for a soft launch in Australia. AtPay supports payments in both traditional currency and cryptocurrency, both online and in physical stores. Users earn AtPay tokens with each repayment, which can be redeemed with the firm’s partner merchants.
• To facilitate card issuance, AtPay has chosen Pismo, a core banking platform based in Sao Paulo, Brazil. Pismo, recently acquired by Visa, offers services such as debit, credit, tokenized, and prepaid cards through an API. AtPay plans to launch officially in Australia in Q1 2024, with ambitions to expand into international markets like the Gulf Cooperation Council (GCC) and North America over the medium term.

From the short to medium-term perspective, PayNXT360 expects more innovative BNPL providers to enter the Australian market. This will aid the competitive landscape while also supporting the growth of the industry over the next three to four years.

The BNPL payment industry in Australia has recorded strong growth over the last four quarters, supported by increased e-commerce penetration.

This report provides a detailed data-centric analysis of the Buy Now Pay Later (BNPL) industry, covering market opportunities and risks across a range of retail categories. With over 75 KPIs at the country level, this report provides a comprehensive understanding of BNPL market dynamics, market size and forecast, and market share statistics.

It breaks down market opportunities by type of business model, sales channels (offline and online), and distribution models. In addition, it provides a snapshot of consumer behaviour and retail spending dynamics. KPIs in both value and volume terms help in getting an in-depth understanding of end market dynamics.

PayNXT360’s research methodology is based on industry best practices. Its unbiased analysis leverages a proprietary analytics platform to offer a detailed view of emerging business and investment market opportunities.


• Get a comprehensive understanding of market dynamics for Buy Now Pay Later: Identify market opportunities, major trends, and forecasting (2020-2029). Understand market trends through crucial KPIs like Gross Merchandise Value, Volume, and Average Value per Transaction, to stay ahead of the curve.

• Insights by end-use sectors: Evaluate new opportunities across multiple end-use sectors, and obtain market dynamics by end-use sectors in order to swiftly catch up with the latest and upcoming developments in BNPL markets.

• Market-specific strategies: Identify growth segments focused on specific opportunities, and analysing market-specific risks and important trends in the BNPL sector with our exclusive blend of quantitative forecasting and innovative insights.

• Gain knowledge of consumer attitudes and actions: This report identifies and interprets important Buy Now Pay Later KPIs, such as spend by age, gender, and income level, using data from a proprietary survey.

• Develop proactive and lucrative business strategies through market intelligence and forward-looking analysis of BNPL market spend and major opportunities in Australia .

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Table of Contents

1 About this Report
1.1 Summary
1.2 Methodology
1.3 BNPL Definitions
1.4 Disclaimer

2 Australia Buy Now Pay Later Industry Attractiveness
2.1 Australia Buy Now Pay Later – Gross Merchandise Value Trend Analysis, 2020-2029
2.2 Australia Buy Now Pay Later – Average Value Per Transaction Trend Analysis, 2020-2029
2.3 Australia Buy Now Pay Later—Transaction Volume Trend Analysis, 2020-2029
2.4 Australia Buy Now Pay Later Market Share Analysis by Key Players

3 Australia Buy Now Pay Later Operational KPIs
3.1 Buy Now Pay Later Revenues, 2020-2029
3.2 Buy Now Pay Later Share by Revenue Segments, 2020-2029
3.2.1 Buy Now Pay Later Revenue by Merchant Commission, 2020-2029
3.2.2 Buy Now Pay Later Revenue by Missed Payment Fee Revenue, 2020-2029
3.2.3 Buy Now Pay Later Revenue by Pay Now & Other Income, 2020-2029
3.3 Buy Now Pay Later Active Consumer Base, 2020-2029
3.4 Buy Now Pay Later Bad Debt, 2020 – 2024 – 2029

4 Buy Now Pay Later Spend Analysis by Business Model, 2020-2029
4.1 Buy Now Pay Later Two-Party Business Model, 2020-2029
4.2 Buy Now Pay Later Three-Party Business Model, 2020-2029

5 Buy Now Pay Later Spend Analysis by Purpose, 2020-2029
5.1 Buy Now Pay Later Convenience, 2020-2029
5.2 Buy Now Pay Later Credit, 2020-2029

6 Buy Now Pay Later Spend Analysis by Functional Attribute, 2020-2029
6.1 Buy Now Pay Later by Open Loop System, 2020-2029
6.2 Buy Now Pay Later by Closed Loop System, 2020-2029

7 Buy Now Pay Later Spend Analysis by Distribution Model, 2020-2029
7.1 Buy Now Pay Later by Standalone, 2020-2029
7.2 Buy Now Pay Later by Banks & Payment Service Providers, 2020-2029
7.3 Buy Now Pay Later by Marketplaces, 2020-2029

8 Australia Buy Now Pay Later Spend Analysis by Sales Channel
8.1 Buy Now Pay Later Market Share by Sales Channel, 2020-2029
8.2 Buy Now Pay Later Online Channel Market Size and Forecast, 2020-2029
8.3 Buy Now Pay Later POS Channel Market Size and Forecast, 2020-2029

9 Australia Buy Now Pay Later Snapshot by End-Use Sector, 2020-2029
9.1 Buy Now Pay Later Market Share by End-Use Sector, 2023
9.2 Buy Now Pay Later Sales Uplift by End-Use Segment, 2023

10 Australia Buy Now Pay Later in Retail Shopping: Market Size and Forecast, 2020-2029
10.1 Australia Buy Now Pay Later Retail Shopping – Gross Merchandise Value Trend Analysis, 2020-2029
10.2 Australia Buy Now Pay Later Retail Shopping – Average Value Per Transaction Trend Analysis, 2020-2029
10.3 Australia Buy Now Pay Later Retail Shopping – Transaction Volume Trend Analysis, 2020-2029

11 Australia Buy Now Pay Later Market Size and Forecast by Retail Product Categories
11.1 Buy Now Pay Later Share by Retail Product Category, 2023
11.2 Australia Buy Now Pay Later Retail Shopping - Apparel, Footwear & Accessories – Gross Merchandise Value Trend Analysis, 2020-2029
11.3 Australia Buy Now Pay Later Retail Shopping - Consumer Electronics – Gross Merchandise Value Trend Analysis, 2020-2029
11.5 Australia Buy Now Pay Later Retail Shopping - Toys, Kids, and Babies – Gross Merchandise Value Trend Analysis, 2020-2029
11.6 Australia Buy Now Pay Later Retail Shopping - Jewellery – Gross Merchandise Value Trend Analysis, 2020-2029
11.7 Australia Buy Now Pay Later Retail Shopping - Sporting Goods – Gross Merchandise Value Trend Analysis, 2020-2029
11.8 Australia Buy Now Pay Later Retail Shopping - Entertainment & Gaming – Gross Merchandise Value Trend Analysis, 2020-2029
11.9 Australia Buy Now Pay Later Retail Shopping - Others – Gross Merchandise Value Trend Analysis, 2020-2029

12 Australia Buy Now Pay Later in Home Improvement: Market Size and Forecast, 2020-2029
12.1 Australia Buy Now Pay Later Home Improvement – Gross Merchandise Value Trend Analysis, 2020-2029
12.2 Australia Buy Now Pay Later Home Improvement – Average Value Per Transaction Trend Analysis, 2020-2029
12.3 Australia Buy Now Pay Later Home Improvement – Transaction Volume Trend Analysis, 2020-2029

13 Australia Buy Now Pay Later in Travel: Market Size and Forecast, 2020-2029
13.1 Australia Buy Now Pay Later Travel – Gross Merchandise Value Trend Analysis, 2020-2029
13.2 Australia Buy Now Pay Later Travel – Average Value Per Transaction Trend Analysis, 2020-2029
13.3 Australia Buy Now Pay Later Travel – Transaction Volume Trend Analysis, 2020-2029

14 Australia Buy Now Pay Later in Media and Entertainment: Market Size and Forecast, 2020-2029
14.1 Australia Buy Now Pay Later Media and Entertainment – Gross Merchandise Value Trend Analysis, 2020-2029
14.2 Australia Buy Now Pay Later Media and Entertainment – Average Value Per Transaction Trend Analysis, 2020-2029
14.3 Australia Buy Now Pay Later Media and Entertainment – Transaction Volume Trend Analysis, 2020-2029

15 Australia Buy Now Pay Later in Service: Market Size and Forecast, 2020-2029
15.1 Australia Buy Now Pay Later Service – Gross Merchandise Value Trend Analysis, 2020-2029
15.2 Australia Buy Now Pay Later Service – Average Value Per Transaction Trend Analysis, 2020-2029
15.3 Australia Buy Now Pay Later Service – Transaction Volume Trend Analysis, 2020-2029

16 Australia Buy Now Pay Later in Automotive: Market Size and Forecast, 2020-2029
16.1 Australia Buy Now Pay Later Automotive – Gross Merchandise Value Trend Analysis, 2020-2029
16.2 Australia Buy Now Pay Later Automotive – Average Value Per Transaction Trend Analysis, 2020-2029
16.3 Australia Buy Now Pay Later Automotive – Transaction Volume Trend Analysis, 2020-2029

17 Australia Buy Now Pay Later in Healthcare and Wellness: Market Size and Forecast, 2020-2029
17.1 Australia Buy Now Pay Later Healthcare and Wellness – Gross Merchandise Value Trend Analysis, 2020-2029
17.2 Australia Buy Now Pay Later Healthcare and Wellness – Average Value Per Transaction Trend Analysis, 2020-2029
17.3 Australia Buy Now Pay Later Healthcare and Wellness – Transaction Volume Trend Analysis, 2020-2029

18 Australia Buy Now Pay Later in Others: Market Size and Forecast, 2020-2029
18.1 Australia Buy Now Pay Later Others – Gross Merchandise Value Trend Analysis, 2020-2029
18.2 Australia Buy Now Pay Later Others – Average Value Per Transaction Trend Analysis, 2020-2029
18.3 Australia Buy Now Pay Later Others – Transaction Volume Trend Analysis, 2020-2029

19 Australia Buy Now Pay Later Analysis by Consumer Attitude and Behaviour, 2020-2029
19.1 Buy Now Pay Later Spend Share by Age Group, 2023
19.1.1 Australia Buy Now Pay Later by Age Group – Gen Z (15-27) – Gross Merchandise Value Trend Analysis, 2020-2029
19.1.2 Australia Buy Now Pay Later by Age Group – Millennials (28–44) – Gross Merchandise Value Trend Analysis, 2020-2029
19.1.3 Australia Buy Now Pay Later by Age Group – Gen X (45 – 60) – Gross Merchandise Value Trend Analysis, 2020-2029
19.1.4 Australia Buy Now Pay Later by Age Group – Baby Boomers (60+) – Gross Merchandise Value Trend Analysis, 2020-2029
19.2 Buy Now Pay Later Spend Share by Default Rate by Age Group, 2023
19.3 Buy Now Pay Later Share by Income, 2023
19.3.1 Australia Buy Now Pay Later by Income Level – Tier 1 – Gross Merchandise Value Trend Analysis, 2020-2029
19.3.2 Australia Buy Now Pay Later by Income Level – Tier 2 – Gross Merchandise Value Trend Analysis, 2020-2029
19.3.3 Australia Buy Now Pay Later by Income Level – Tier 3 – Gross Merchandise Value Trend Analysis, 2020-2029
19.4 Buy Now Pay Later Gross Merchandise Value Share by Gender, 2023
19.5 Buy Now Pay Later Adoption Rationale, 2023
19.6 Australia Buy Now Pay Later Market – Spend by Average Monthly Expense Segments, 2023

20 Further Reading
20.1 About PayNXT360
20.2 Related Research

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List of Tables/Graphs

Table 1: Australia Buy Now Pay Later – Gross Merchandise Value Trend Analysis (US$ Million), 2020-2029
Table 2: Australia Buy Now Pay Later – Average Value Per Transaction Trend Analysis (US$), 2020-2029
Table 3: Australia Buy Now Pay Later – Transaction Volume Trend Analysis (Thousand), 2020-2029
Table 4: Australia Buy Now Pay Later – Revenues (US$ Million), 2020-2029
Table 5: Australia Buy Now Pay Later – Merchant Commission (US$ Million), 2020-2029
Table 6: Australia Buy Now Pay Later – Missed Payment Fee Revenue (US$ Million), 2020-2029
Table 7: Australia Buy Now Pay Later Pay Now – Other Income (US$ Million), 2020-2029
Table 8: Australia Buy Now Pay Later – Active Consumer Base (Thousand), 2020-2029
Table 9: Australia Buy Now Pay Later – Bad Debt (US$ Million), 2022-2024-2029
Table 10: Australia Buy Now Pay Later – Two-Party Business Model (US$ Million), 2020-2029
Table 11: Australia Buy Now Pay Later – Three-Party Business Model (US$ Million), 2020-2029
Table 12: Australia Buy Now Pay Later – Convenience (US$ Million), 2020-2029
Table 13: Australia Buy Now Pay Later – Credit (US$ Million), 2020-2029
Table 14: Australia Buy Now Pay Later – Open Loop System (US$ Million), 2020-2029
Table 15: Australia Buy Now Pay Later – Closed Loop System (US$ Million), 2020-2029
Table 16: Australia Buy Now Pay Later – Standalone (US$ Million), 2020-2029
Table 17: Australia Buy Now Pay Later – Banks & Payment Service Providers (US$ Million), 2020-2029
Table 18: Australia Buy Now Pay Later – Marketplaces (US$ Million), 2020-2029
Table 19: Australia Buy Now Pay Later – Gross Merchandise Value by Online Channel (US$ Million), 2020-2029
Table 20: Australia Buy Now Pay Later – Gross Merchandise Value by POS Channel (US$ Million), 2020-2029
Table 21: Australia Buy Now Pay Later Retail Shopping – Gross Merchandise Value Trend Analysis (US$ Million), 2020-2029
Table 22: Australia Buy Now Pay Later Retail Shopping – Average Value Per Transaction Trend Analysis (US$), 2020-2029
Table 23: Australia Buy Now Pay Later Retail Shopping – Transaction Volume Trend Analysis (Thousand), 2020-2029
Table 24: Australia Buy Now Pay Later Retail Shopping - Apparel, Footwear & Accessories – Gross Merchandise Value Trend Analysis (US$ Million), 2020-2029
Table 25: Australia Buy Now Pay Later Retail Shopping - Consumer Electronics – Gross Merchandise Value Trend Analysis (US$ Million), 2020-2029
Table 26: Australia Buy Now Pay Later Retail Shopping - Toys, Kids, and Babies – Gross Merchandise Value Trend Analysis (US$ Million), 2020-2029
Table 27: Australia Buy Now Pay Later Retail Shopping - Jewellery – Gross Merchandise Value Trend Analysis (US$ Million), 2020-2029
Table 28: Australia Buy Now Pay Later Retail Shopping - Sporting Goods – Gross Merchandise Value Trend Analysis (US$ Million), 2020-2029
Table 29: Australia Buy Now Pay Later Retail Shopping - Entertainment & Gaming – Gross Merchandise Value Trend Analysis (US$ Million), 2020-2029
Table 30: Australia Buy Now Pay Later Retail Shopping - Others – Gross Merchandise Value Trend Analysis (US$ Million), 2020-2029
Table 31: Australia Buy Now Pay Later Home Improvement – Gross Merchandise Value Trend Analysis (US$ Million), 2020-2029
Table 32: Australia Buy Now Pay Later Home Improvement – Average Value Per Transaction Trend Analysis (US$), 2020-2029
Table 33: Australia Buy Now Pay Later Retail Shopping Home Improvement – Transaction Volume Trend Analysis (Thousand), 2020-2029
Table 34: Australia Buy Now Pay Later Travel – Gross Merchandise Value Trend Analysis (US$ Million), 2020-2029
Table 35: Australia Buy Now Pay Later Travel – Average Value Per Transaction Trend Analysis (US$), 2020-2029
Table 36: Australia Buy Now Pay Later Travel – Transaction Volume Trend Analysis (Thousand), 2020-2029
Table 37: Australia Buy Now Pay Later Media and Entertainment – Gross Merchandise Value Trend Analysis (US$ Million), 2020-2029
Table 38: Australia Buy Now Pay Later Media and Entertainment – Average Value Per Transaction Trend Analysis (US$), 2020-2029
Table 39: Australia Buy Now Pay Later Media and Entertainment – Transaction Volume Trend Analysis (Thousand), 2020-2029
Table 40: Australia Buy Now Pay Later Service – Gross Merchandise Value Trend Analysis (US$ Million), 2020-2029
Table 41: Australia Buy Now Pay Later Service– Average Value Per Transaction Trend Analysis (US$), 2020-2029
Table 42: Australia Buy Now Pay Later Service – Transaction Volume Trend Analysis (Thousand), 2020-2029
Table 43: Australia Buy Now Pay Later Automotive – Gross Merchandise Value Trend Analysis (US$ Million), 2020-2029
Table 44: Australia Buy Now Pay Later Automotive – Average Value Per Transaction Trend Analysis (US$), 2020-2029
Table 45: Australia Buy Now Pay Later Automotive – Transaction Volume Trend Analysis (Thousand), 2020-2029
Table 46: Australia Buy Now Pay Later Healthcare and Wellness – Gross Merchandise Value Trend Analysis (US$ Million), 2020-2029
Table 47: Australia Buy Now Pay Later Healthcare and Wellness – Average Value Per Transaction Trend Analysis (US$), 2020-2029
Table 48: Australia Buy Now Pay Later Healthcare and Wellness – Transaction Volume Trend Analysis (Thousand), 2020-2029
Table 49: Australia Buy Now Pay Later Others – Gross Merchandise Value Trend Analysis (US$ Million), 2020-2029
Table 50: Australia Buy Now Pay Later Others – Average Value Per Transaction Trend Analysis (US$), 2020-2029
Table 51: Australia Buy Now Pay Later Others – Transaction Volume Trend Analysis (Thousand), 2020-2029
Table 52: Australia Buy Now Pay Later by Age Group – Gen Z (15-27) – Gross Merchandise Value Trend Analysis (US$ Million), 2020-2029
Table 53: Australia Buy Now Pay Later by Age Group – Millennials (28–44) – Gross Merchandise Value Trend Analysis (US$ Million), 2020-2029
Table 54: Australia Buy Now Pay Later by Age Group – Gen X (45 – 60) – Gross Merchandise Value Trend Analysis (US$ Million), 2020-2029
Table 55: Australia Buy Now Pay Later by Age Group – Baby Boomers (60+) – Gross Merchandise Value Trend Analysis (US$ Million), 2020-2029
Table 56: Australia Buy Now Pay Later by Income Level – Tier 1 – Gross Merchandise Value Trend Analysis (US$ Million), 2020-2029
Table 57: Australia Buy Now Pay Later by Income Level – Tier 2 – Gross Merchandise Value Trend Analysis (US$ Million), 2020-2029
Table 58: Australia Buy Now Pay Later by Income Level – Tier 3 – Gross Merchandise Value Trend Analysis (US$ Million), 2020-2029