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

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

According to PayNXT360, BNPL payments in the country are expected to grow by 14.7% on an annual basis to reach US$12,954.6 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 9.5% during 2024-2029. The BNPL gross merchandise value in the country will increase from US$11,298.7 million in 2023 to reach US$20,390.7 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.

Key Developments in the BNPL Sector in Australia

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.

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.