Australia Buy Now Pay Later Business and Investment Opportunities Databook - 75+ KPIs on BNPL Market Size, End-Use Sectors, Market Share, Product Analysis, Business Model, Demographics - Q2 2024 Update

The BNPL payments in the country are expected to grow by 14.7% on an annual basis to reach US$12.95 billion 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 9.5% during 2024-2029. The BNPL gross merchandise value in the country will increase from US$11.29 billion in 2023 to reach US$20.39 billion 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, the publisher expects more players to enter the market with their innovative products.

Key Developments in the BNPL Sector in Australia

Australia's Buy Now Pay Later (BNPL) sector has witnessed numerous product launches and advancements. Here are the main highlights.

Product Launches and Innovations

• Afterpay and Zip have introduced new features that enhance consumer flexibility. These updates include extended payment terms and options that allow users to manage larger purchases more effectively, catering to the growing demand for BNPL services in essential spending categories.
• Integration of Credit Checks - With the proposed regulatory changes, BNPL providers are expected to implement basic credit checks for new customers. This move aims to ensure responsible lending and protect consumers from overextending financial commitments. Companies like Klarna and Zip are preparing to adapt their systems to comply with these new requirements, which are part of the ongoing efforts to regulate the BNPL sector more effectively.

Strategic Partnerships

• PPRO, a leading local payments platform, partnered with Afterpay to launch a new BNPL solution tailored for the Australian market. This partnership aims to provide consumers with more flexible payment options, enhancing the shopping experience across various retail sectors.
• Zip Co, an Australian BNPL provider, partnered with Primer to integrate Zip's BNPL offerings into Primer's platform. This integration will enable merchants in various sectors, such as retail and travel, to offer BNPL payment methods to their customers, broadening Zip's reach in the Australian market.
• Klarna has been expanding its operations in Australia, including partnerships and potential acquisitions to bolster its market presence. While specific acquisitions have yet to be detailed, Klarna's strategic moves indicate a focus on increasing its footprint in the competitive Australian BNPL market.

Regulatory Changes

• The Australian Government has published a preliminary version of the Treasury Laws Amendment Bill 2024 for public review. This bill proposes to regulate Buy Now Pay Later products under the National Consumer Credit Protection Act 2009. The regulation of BNPL services will significantly shift in the future, placing them within a more structured regulatory framework akin to traditional credit products. The bill aims to tackle concerns regarding unaffordable lending practices, excessive late fees, and a lack of transparency in product disclosures.
• The public consultation period for the Amendment Bill was open until April 9, 2024. The stakeholders, including BNPL providers, consumer advocacy groups, and the public, to provide feedback on the proposed changes. The final version of the legislation is expected to be introduced later in 2024.
• BNPL providers must obtain an Australian Credit License (ACL) and comply with statutory dispute resolution and hardship assistance requirements. This shift aims to bring greater accountability to the BNPL sector and protect consumers from predatory lending practices.

Australia's recent regulatory changes in the Buy Now, Pay Later (BNPL) sector prioritize consumer welfare and transparency, aiming to address the challenges posed by rapid BNPL growth. Providers will need to adjust their practices to comply with the new framework.

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.

The publisher’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.

Scope

This report provides in-depth, data-centric analysis of Buy Now Pay Later industry in Australia through 55 tables and 71 charts. Below is a summary of key market segments:

Australia BNPL Market Size and Spending Pattern, 2020-2029

• Gross Merchandise Value Trend Analysis
• Average Value Per Transaction Trend Analysis
• Transaction Volume Trend Analysis

Australia Buy Now Pay Later Revenue Analysis, 2020-2029

• Buy Now Pay Later Revenues
• Buy Now Pay Later Share by Revenue Segments
• Buy Now Pay Later Revenue by Merchant Commission
• Buy Now Pay Later Revenue by Missed Payment Fee Revenue
• Buy Now Pay Later Revenue by Pay Now & Other Income

Australia Buy Now Pay Later Operational KPIs & Statistics, 2020-2029

• Buy Now Pay Later Active Consumer Base
• Buy Now Pay Later Bad Debt

Australia BNPL by Purpose, 2020-2029

• Convenience - Short Term Loans
• Credit - Long Term Loans

Australia BNPL by Business Model, 2020-2029

• Two-Party (BNPL offered by retailers)
• Three-Party BNPL Offering

Australia BNPL by Merchant Ecosystem, 2020-2029

• Open Loop System
• Closed Loop System

Australia BNPL by Distribution Model Analysis, 2020-2029

• Standalone
• Banks & Payment Service Providers
• Marketplaces

Australia Buy Now Pay Later Market Share Analysis by Key Players

Australia BNPL Analysis by Channel, 2020-2029

• Online Channel
• POS Channel

Australia Buy Now Pay Later in Retail Shopping: Market Size and Forecast, 2020-2029

• Gross Merchandise Value Trend Analysis
• Average Value Per Transaction Trend Analysis
• Transaction Volume Trend Analysis

Australia Buy Now Pay Later in Home Improvement: Market Size and Forecast, 2020-2029

• Gross Merchandise Value Trend Analysis
• Average Value Per Transaction Trend Analysis
• Transaction Volume Trend Analysis

Australia Buy Now Pay Later in Travel: Market Size and Forecast, 2020-2029

• Gross Merchandise Value Trend Analysis
• Average Value per Transaction Trend Analysis
• Transaction Volume Trend Analysis

Australia Buy Now Pay Later in Media and Entertainment: Market Size and Forecast, 2020-2029

• Gross Merchandise Value Trend Analysis
• Average Value per Transaction Trend Analysis
• Transaction Volume Trend Analysis

Australia Buy Now Pay Later in Services: Market Size and Forecast, 2020-2029

• Gross Merchandise Value Trend Analysis
• Average Value Per Transaction Trend Analysis
• Transaction Volume Trend Analysis

Australia Buy Now Pay Later in Automotive: Market Size and Forecast, 2020-2029

• Gross Merchandise Value Trend Analysis
• Average Value Per Transaction Trend Analysis
• Transaction Volume Trend Analysis

Australia Buy Now Pay Later in Healthcare and Wellness: Market Size and Forecast, 2020-2029

• Gross Merchandise Value Trend Analysis
• Average Value Per Transaction Trend Analysis
• Transaction Volume Trend Analysis

Australia Buy Now Pay Later in Others: Market Size and Forecast

• Gross Merchandise Value Trend Analysis
• Average Value Per Transaction Trend Analysis
• Transaction Volume Trend Analysis

Australia Buy Now Pay Later Analysis by Consumer Attitude and Behaviour

• Sales Uplift by Product Category
• Share by Age Group
• Share by Income
• Share by Gender
• Adoption Rationale
• Average Monthly Expense segments

Reasons to buy

• Gain a thorough grasp of the dynamics of the industry for Buy Now Pay Later: Determine key trends, market opportunities, and projections for the years 2020-2029. To keep on top of the game, utilise critical KPIs such as volume, average value per transaction, and gross merchandise value to understand market trends.
• Get market dynamics by end-use sectors and assess new prospects across various end-use sectors to quickly stay up to date on the most recent and impending developments in BNPL markets.
• Market-specific strategies include identifying growth areas that are concentrated on particular opportunities and using our unique combination of quantitative forecasting and cutting-edge insights to analyse market-specific risks and significant trends in the BNPL sector.
• Learn about the attitudes and behaviours of consumers: This study uses information from a proprietary survey to identify and interpret key Buy Now Pay Later KPIs, such as spending by age, gender, and income level.
• Create profitable and proactive business plans by utilising market research and a forward-looking study of BNPL market spend and significant prospects in Australia .