Share of adults having used BNPL services Australia 2020-2024

According to a survey on buy now, pay later (BNPL) in Australia, 43 percent of respondents stated that they used BNPL services in the past six months as of July 2024. The country has seen a rapid uptake of BNPL services over the past few years, with consumers attracted to the zero-interest sometimes offered and convenience. 

BNPL in Australia

The overall penetration rate of BNPL is high in Australia compared to similar economies. Still, there are differences between generational usage of BNPL services in Australia, with Gen Z and Millennial consumers using these payment services more than older generations. The leading BNPL brand in Australia is afterpay, with a high adoption rate for both point-of-sale and online transactions.

Consumer credit causing problems?

The average BNPL debt in Australia has consistently exceeded 1,000 Australian dollars over the past few years, though as of July 2024, has dropped to under 900 Australian dollars. Due to cost-of-living pressures, many consumers have had to pay for essential items with the payment service, according to financial advisors in Australia. While the benefit of having the item purchased immediately is clear, BNPL users often need to pay late fees if they do not make their scheduled repayments on time.