Australia’s Buy It Now Pay Later Market Outlook to 2028

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Dublin, Oct. 20, 2022 (GLOBE NEWSWIRE) — The “Australia Buy Now Pay Later Business and Investment Opportunities – 75+ KPIs on Buy Now Pay Later Trends by End-Use Sectors, Operational KPIs, Market Share, Retail Product Dynamics, and Consumer Demographics – Q3 2022 Update” report has been added to from ResearchAndMarkets.com offer.

According to the publisher, BNPL payments in the country are expected to increase by 57.0% on an annual basis to reach $22,062.3 million in 2022.

The medium to long term growth story of the BNPL industry in Australia remains strong. BNPL payment adoption is expected to grow steadily over the forecast period, registering a CAGR of 32.5% during 2022-2028. BNPL’s gross merchandise value in the country will increase from US$14,056.7 million in 2021 to US$119,277.8 million by 2028.

Australian consumers were among the first to adopt the Buy Now Pay Later (BNPL) payment method in the world. The explosion in popularity of the BNPL payment method during the global pandemic outbreak has seen many traditional financial services businesses, including banks, rapidly move into the BNPL space either in conjunction with established BNPL providers , or by introducing their deferred payment service, despite initial hesitation and skepticism about these payment terms.

The medium to long-term growth prospects for the BNPL industry remain strong in Australia, as payment adoption is expected to grow steadily among consumers of different age groups. Recent moves by BNPL providers, such as Afterpay, also indicate where the next phase of growth in the BNPL industry could come from. The Australian company, which Square acquired, is making inroads into the brick-and-mortar retail segment by integrating the BNPL payment method with in-store point-of-sale solutions offered by Square.

Over the next three to four years, the publisher expects in-store growth to outpace the online BNPL segment in Australia. With the huge market reach offered by mobile payments, the integration of BNPL services with digital wallets like Apple and Google Pay presents huge new addressable markets.

Banking Institutions Continue to Enter Deferred Payments Segment with BNPL Product Launches in Australia

As Australian consumers aggressively increase their BNPL spending, once hesitant traditional banking institutions continue to enter the deferred payment segment by launching their BNPL services. The introduction of these new BNPL services to the Australian market is expected to put additional pressure on existing operators. For instance,

  • In May 2022, National Australia Bank (NAB) announced the launch of the BNPL service. This made the bank the third of Australia’s four major banks to offer BNPL products to customers. The bank began offering NAB Now Pay Later services from July 2022 using the existing Visa credit card system. This means the bank won’t have to sign up merchants like stand-alone operators like Afterpay and Zip do. NAB’s entry into the BNPL segment will put additional pressure on standalone operators who are battling corporate losses amid rising interest rates that have made it harder for players to survive.

NAB’s BNPL service joins similar services launched by CBA and ANZ, leaving Westpac the only one of the big four not to currently provide a BNPL product. For existing pure-play BNPL operators, the entry of banks will further lead to a massive squeeze in the segment, as the Australian market has already peaked and growth is expected to slow in the near term.

BNPL Suppliers Expand Services into New Product Categories to Drive Growth Amid Growing Competition

Amid growing competition in Australia’s BNPL industry, companies are expanding their services into new product categories to further attract consumers and drive growth. For instance,

  • In March 2022, Fupay, the Australian Fintech company, announced that it was expanding BNPL products to petrol and groceries. After expanding into leasing in 2021, national player BNPL announced new fuel and grocery partnerships with United Petroleum, IGA Marketplace and Foodworks. The move comes amid an expansion of payment services across the board as emerging fintech companies continue to compete and challenge big banks.

Alongside new BNPL players, established global giants such as Afterpay are also launching the service across the various segments. For instance,

  • In March 2022, Afterpay announced that the company had entered into a strategic collaboration with DoorDash, one of the world’s leading food delivery platforms. Under the strategic alliance, DoorDash customers will be able to use the BNPL service offered by Afterpay while ordering food from the aggregator.

The publisher expects the trend to strengthen further as players seek to expand their services into more product categories amid growing competition in the Australian BNPL market.

M&A deals set to increase as players consolidate to survive increased competition and rising interest rates

In 2022, the BNPL sector in Australia is expected to see more mergers and acquisitions as businesses consolidate to survive increased competition and rising interest rates. Notably, Australia is expected to start raising interest rates from a record low during the pandemic later this year. As businesses face higher borrowing costs, margins from providing interest-free installment loans to point-of-sale buyers will be reduced.

Additionally, the explosive revenue growth achieved by the BNPL sector over the past two years during the global pandemic has attracted investment from global tech giants such as Apple Inc. and PayPal Holdings Inc., which will likely crowd out the BNPL small businesses from short to medium term perspective. As a result, the editor predicts that most startups will either be bought or closed without being able to mobilize more investment to survive.

Scope

This report provides an in-depth, data-driven analysis of the Buy Now Pay Later industry in Australia. Below is a summary of the main market segments:

Australia BNPL Market Size and Spending Pattern

  • Gross Commodity Value Trend Analysis

  • Analysis of trends in the average value per transaction

  • Trading volume trend analysis

Australia Buy Now Pay Later Operational KPIs

  • Revenue from buy-it-now and pay-later, 2019 – 2028

  • Buy Now Pay Later Share by Revenue Segments

  • Buy Now Pay Later Merchant Commission, 2019 – 2028

  • Buy now, pay later, missed payment fee revenue, 2019 – 2028

  • Buy Now Pay Later Pay Now and Other Revenues, 2019 – 2028

  • Accounts Buy Now Pay Later, 2019 – 2028

  • Buy Now Pay Bad Debt Later, 2019 – 2028

Australia Buy Now Pay Later Market Share Analysis by Key Players

  • (Afterpay, Zippay, Humm, OpenPay, Payright)

Australia Buy Now Pay Later Spend Analysis by Channel: Market Size and Forecast

  • online channel

  • POS channel

Australia Buy Now, Pay Later in Retail: Market Size and Forecast

  • Gross Commodity Value Trend Analysis

  • Analysis of trends in the average value per transaction

  • Trading volume trend analysis

Australia Buy Now Pay Later in Home Improvement: Market Size and Forecast

  • Gross Commodity Value Trend Analysis

  • Analysis of trends in the average value per transaction

  • Trading volume trend analysis

Australia Buy Now, Pay Later in Leisure and Entertainment: Market Size and Forecast

  • Gross Commodity Value Trend Analysis

  • Analysis of trends in the average value per transaction

  • Trading volume trend analysis

Australia Buy Now, Pay Later in Healthcare and Wellbeing: Market Size and Forecast

  • Gross Commodity Value Trend Analysis

  • Analysis of trends in the average value per transaction

  • Trading volume trend analysis

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

  • Gross Commodity Value Trend Analysis

  • Analysis of trends in the average value per transaction

  • Trading volume trend analysis

Australia Buy Now Pay Later Analysis by Consumer Attitude and Behavior

  • Buy now, pay later Increased sales by product category

  • Buy now Pay later Split spend by age group

  • Buy now, pay later Share of gross merchandise by revenue

  • Buy now, pay later Share of gross value of goods by gender

  • Buy Now Pay Later Rationale for Adoption Gross Goods Value Analysis

Reasons to buy

  • In-depth understanding of Buy Now Pay Later market dynamics: Understand market opportunities and key trends along with forecast (2019-2028). Understand market dynamics with essential KPIs such as gross commodity value, volume, and average value per trade.

  • Overview of Opportunities by End-Use Sectors – Obtain market dynamics by end-use sectors to assess emerging opportunities in various end-use sectors.

  • Develop market-specific strategies: identify growth segments and target specific opportunities to formulate BNPL’s strategy; assess key market-specific trends, drivers, and risks in the BNPL industry.

  • Gain insights into consumer attitude and behavior: Drawing on proprietary survey results, this report identifies and interprets key Buy Now, Pay Later KPIs, including spend by age, gender and income level.

  • Market share by key players

For more information on this report, visit https://www.researchandmarkets.com/r/7yv9p

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