The Asia Pacific Buy Now Pay Later Services Market report segments the industry into By Channel (Online, POS), By Enterprise (Large Enterprises, Small & Medium Enterprises, Others), By End User (Consmer electronics, Fashion & garments, Healthcare, Leisure & entertainment, Retail, Others) and By Country (India, China, Japan, Australia, New Zealand, Rest of Asia Pacific).

The Australian Buy Now Pay Later (BNPL) services market is experiencing robust growth, driven by increasing consumer adoption of digital payment methods and a preference for flexible payment options. The market's Compound Annual Growth Rate (CAGR) exceeding 10% from 2019-2024 indicates significant momentum. This growth is fueled by the expansion of e-commerce, the rising popularity of BNPL amongst younger demographics, and the increasing penetration of smartphones and internet access. Key segments within the market include online channels, which are expected to maintain their dominance, and large enterprises, which are leveraging BNPL services to enhance customer acquisition and loyalty. While the consumer electronics, fashion and personal care, and retail sectors are major end-users, the healthcare and leisure & entertainment segments also present significant growth opportunities. The competitive landscape is highly dynamic, with established players like PayPal, Afterpay, Zippay, and Stripe competing alongside smaller, niche providers. Despite the strong growth trajectory, regulatory scrutiny and potential risks associated with consumer debt levels pose challenges to the market's long-term sustainability. Ongoing market consolidation and technological innovation are expected to shape the future of the Australian BNPL landscape. The forecast period (2025-2033) anticipates continued expansion, although the CAGR might slightly moderate as the market matures. The ongoing adoption of BNPL across diverse sectors, coupled with strategic partnerships between BNPL providers and merchants, will fuel further growth. However, factors like increased competition, evolving regulatory frameworks, and potential economic downturns could influence the growth trajectory. Therefore, a nuanced approach toward risk management and consumer protection will be vital for sustained success within the Australian BNPL market. The strategic focus will likely shift towards enhanced security measures, improved credit scoring systems, and greater financial literacy initiatives to ensure responsible lending practices and prevent potential negative consequences associated with excessive consumer debt. This will necessitate collaboration between BNPL providers, regulators, and financial institutions to foster a sustainable and responsible BNPL ecosystem in Australia. Recent developments include: In March 2022, Australian buy now, pay later (BNPL) firm Zip has announced a definitive agreement to acquire rival US BNPL fintech Sezzle. The deal values Sezzle at approximately USD 360 million (AUD 491 million)., In October 2021, Visa announced that the firm had expanded its BNPL offering, Visa Installments, to Australia. As part of its launch in the Australian BNPL sector, Visa has entered into a strategic alliance with ANZ and Quest Payment Systems.. Notable trends are: Increase of Non-Cash Payments helps in Market growth.

In 2023, the Australia Buy Now Pay Later (BNPL) Market reached a value of USD 7.14 billion, and it is projected to surge to USD 54.87 billion by 2030.

The Australia Buy Now Pay Later Services report features an extensive regional analysis, identifying market penetration levels across major geographic areas. It highlights regional growth trends and opportunities, allowing businesses to tailor their market entry strategies and maximize growth in specific regions.

The global buy now, pay later (BNPL) market size is predicted to increase by nearly ** percent between 2024 and 2030. Regardless, BNPL reached a global market share of around **** percent in 2024 - with ***** out of 10 top global buy now, pay later markets worldwide being located in northwestern Europe. The market share of BNPL services in domestic e-commerce payments in both Sweden and Germany, for instance, was around *** times higher than the market share in global e-commerce payments. Big international names, local competition? Common names that spring to mind when it comes to BNPL include Klarna (Sweden), Affirm (United States), and Afterpay (Australia), as all three providers had millions of active users in 2021. The three are sometimes joined by Quadpay/Zip (United States) in some sources. These apps are popular in the United States, Canada, and Europe. Europeans, for instance, downloaded Klarna significantly more than other BNPL apps available to them. That is not to say all countries prefer BNPL through Klarna, however: In Switzerland, it is expected that one of the country’s most popular payment methods - mobile payment option TWINT – will implement payments in installments to compete with Klarna. Uncertainty going forward It is uncertain whether the initial success of buy now, pay later will hold. In May 2022 – shortly after the figures provided here were released – Klarna announced it would cut roughly ** percent of its global staff. CEO and co-founder Sebastian Siemiatkowski cited an expected decline in consumer spending, caused by the war in Ukraine and growing inflation worldwide since. Regardless, some experts still fear that having the option to make payments might be too enticing for low-income households – especially in a time of uncertainty when it comes to personal finance.

According to a survey conducted in June 2022, afterpay was the most used buy now, pay later (BNPL) digital payment service in Australia, with **** percent of Australians using it. As BNPL has increased in popularity in Australia, many smaller fintech companies, such as Humm and Openpay, have joined the market.

The Asia Pacific Buy Now Pay Later (BNPL) market is experiencing explosive growth, projected to reach $155.72 million in 2025 and exhibiting a robust Compound Annual Growth Rate (CAGR) of 16.56%. This surge is driven by several key factors. Increasing smartphone penetration and internet access across the region, particularly in emerging economies like India and Indonesia, are fueling wider adoption of e-commerce and digital payment solutions. Consumers, especially millennials and Gen Z, are drawn to the convenience and flexibility offered by BNPL services, which provide short-term credit without the complexities of traditional loans. The rise of e-commerce platforms and the proliferation of online marketplaces further contribute to the market's expansion, creating a fertile ground for BNPL providers to thrive. Furthermore, a growing preference for contactless payment methods, accelerated by the COVID-19 pandemic, has cemented BNPL's position as a preferred payment option. However, the market faces challenges such as regulatory uncertainty in some countries, concerns about consumer debt, and the potential for fraud. The competitive landscape is also intensifying, with both established players and new entrants vying for market share. Segmentation reveals strong performance across diverse end-user sectors including consumer electronics, fashion & garments, and healthcare, indicating broad appeal and applicability across various product categories. The strong performance in the online channel further illustrates the dominance of digital transactions in the BNPL sector's growth trajectory. The market's success is largely dependent on managing risk effectively, fostering consumer trust, and adapting to evolving regulatory frameworks. The continued growth of the Asia Pacific BNPL market hinges on addressing these challenges strategically. Focusing on responsible lending practices and consumer education will be crucial to mitigating debt concerns and maintaining market stability. Collaborations with e-commerce platforms and financial institutions can enhance reach and streamline operations. Furthermore, leveraging data analytics and advanced technologies to prevent fraud and improve risk assessment will be paramount. The expansion into less penetrated markets within the Asia Pacific region, combined with a focus on developing innovative product offerings and tailored solutions, presents substantial growth opportunities for BNPL providers. Companies such as Reepay, Akulaku, Hoolah, Atome, and Pine Lab are leading this charge, highlighting the dynamic and competitive nature of the market. The geographical breakdown, encompassing countries like China, India, and Australia, points to a diverse and geographically widespread market with opportunities for both regional and international players. This report provides a detailed analysis of the rapidly expanding Asia Pacific Buy Now Pay Later (BNPL) industry, covering the period 2019-2033. It leverages extensive market research to provide insights into market size, growth drivers, key players, and emerging trends, offering invaluable intelligence for businesses and investors seeking to understand this dynamic sector. The report utilizes 2025 as its base year and estimated year, with a forecast period spanning 2025-2033 and a historical period encompassing 2019-2024. The total market value is projected to reach significant figures in the billions. Note: I cannot provide actual market values in billions as that information requires extensive paid market research data, which is not accessible here. My examples below will use the placeholder "XXX Million" to represent the actual, researched values. Recent developments include: In June 2022, China E-commerce firm Kuaishou launched Sesame Credit's buy now and pay later (BNPL) service. Under the service users with a Sesame score of 550 and above will be able to order, receive, and try the products before paying on its e-commerce platform allowing its customers to easily return and exchange goods., In February 2023, CRED launched its buy now and pay later service in India. The feature will allow customers to make payments on the app and across different partner merchants, including Swiggy, Zepto, and Urban Company, and allow users to clear the bill at no charge within 30 days.. Key drivers for this market are: Lack Of Credit Availability In Small Transaction Driving BNPL Services, Rise In The Value Of Digital Transaction In Asia Pacific. Potential restraints include: Lack Of Credit Availability In Small Transaction Driving BNPL Services, Rise In The Value Of Digital Transaction In Asia Pacific. Notable trends are: Rising Digital Payments.

Technology is up-ending how consumers manage their finances and pay for goods as buy now pay later (BNPL) services have emerged to challenge traditional credit cards and short-term loans. Convenient BNPL services have been integrated into the buying cycle, as consumers, particularly younger demographics, embrace payment instalments at the point-of-sale. Booming online shopping has fuelled merchant and consumer uptake of BNPL platforms. Revenue has surged by an anticipated 13.4% over the past five years, with a 3.7% jump in 2024-25, to reach $1.4 billion. Consumers can flip between BNPL platforms, which has pushed up competition as providers struggle for fluid market share. Banks and financial services firms have also jumped in, offering BNPL alongside their established suite of payment options. Their scale, absence of additional merchant and account fees and integrated service delivery have pressured traditional BNPL providers. Market saturation and the re-emergence of credit cards as strong substitutes have limited industry expansion. Rising interest rates and volatile consumer sentiment have also stretched the BNPL business model as funding costs climbed and operational conditions harshened. This led to the exit of unprofitable, smaller providers like Openpay and forced larger ones like Latitude to discontinue their BNPL platform, boosting profitability and market share concentration. Innovation has become a survival strategy for BNPL providers, as providers like Afterpay launched a subscription model, Afterpay Plus. Looking forwards, the prospect of tighter regulation will challenge BNPL providers. The proposed reform will require providers to comply with the National Consumer Credit Act 2009, meaning providers must obtain an Australian credit licence and adhere to responsible lending practices. This will lift compliance and operational expenses and restrict the accessibility to BNPL services, constraining revenue growth and promoting consolidation among providers. Despite these challenges, continuous technological innovation and the growing appeal of flexible instalment payments among younger generations are set to underpin industry expansion. Rate cuts in the coming years will also benefit providers as wholesale funding costs ease. This is why revenue is forecast to rise at an annualised 5.2% through the end of 2029-30, to reach $1.8 billion.

In 2024, ***** out of 10 top global buy now, pay later (BNPL) markets worldwide were in northwestern Europe as consumers looked for new e-commerce payment methods. The market share of BNPL services in domestic e-commerce payments in both Sweden and Germany was around *** times higher than the same market share in global e-commerce payments. The popularity of Sweden's BNPL provider Klarna may be at the heart of this, as it ranks among one of the most used online payment methods among German consumers. Is BNPL still growing? The global buy now, pay later market size will increase by nearly *** billion USD between 2021 and 2026. This would mean a further acceleration of growth. Whether the cost of living crisis impacts these figures is not immediately clear. Some believe it may drive consumers to use buy now, pay later more often. On the other hand, a global economic downturn led Klarna's private-market valuation to fall by ** percent in 2022. Consequently, the company laid off *** employees. Brand preference varies per country The country of origin of a BNPL brand can impact its adoption. Estimates based on website tracking and the technologies used within them reveal that merchants from Sweden, and especially its neighboring countries, offered Klarna relatively more typically than anywhere else. This extended beyond the Nordics. Merchants from Australia and New Zealand were more likely to offer Afterpay - which comes from Australia - than e-commerce websites from other parts of the world. The United States is home to several major brands like Affirm, Sezzle, and Zip. These face competition from PayPal.

Increasing consumer demand for flexible payment solutions is being driven by the convenience and interest-free nature of Buy Now Pay Later (BNPL) services, which appeal to a broad demographic in Australia. The Australia Buy Now Pay Later Services Market is estimated to reach a valuation of USD 12.95 Billion in 2024, surpassing around USD 27.95 Billion valued in 2032.The rapid expansion of the Australia buy now pay later services market is primarily driven by the adoption of digital payment platforms, facilitated by advancements in financial technology and consumer preference for cashless transactions. It enables the market to grow at a CAGR of 11.60% from 2026 to 2032.

The Australia buy now pay later services market size reached USD 662.84 Million in 2024. The market is expected to grow at a CAGR of 10.65% between 2025 and 2034, reaching USD 1823.57 Million by 2034.

Market modeling estimates that BNPL transactions in Australia would be about ** percent higher in 2025 than in 2024. This is according to a market model released in the first quarter of 2025. Note that the source does not give further indications of what the figures provided here are based on. As buy now, pay later was unregulated in many countries across the world by early 2025, transaction figures on this payment method were scarce unless a domestic financial supervisor managed to request data from individual BNPL providers.

In 2024, Buy Now, Pay Later (BNPL) payments amounted to ** percent of e-commerce payments in Australia. In comparison, BNPL payments accounted for about *** percent of e-commerce payments in Hong Kong, South Korea, Taiwan, Thailand, and Vietnam. Growing BNPL adoption in Asia BNPL is a financing service that allows consumers to make purchases on credit through future installments. The service is often interest-free for the short term, making it an attractive solution for cash-strapped consumers. The largest BNPL providers worldwide include Klarna and Affirm. BNPL in Asia is still at a nascent stage, but its BNPL user base is expanding rapidly, particularly in Southeast Asia. For example, Indonesia's number of BNPL users is forecasted to more than double by 2028. This growth is driven by rising e-commerce activity, a young digital-savvy population, and increasing demand for flexible, accessible credit alternatives. BNPL consumer behavior in Australia BNPL is widely used in Australia, particularly among younger consumers, with around ** percent of Gen Z and Y respondents reporting BNPL usage in 2024. Well-known BNPL brands include Afterpay, Zip, and Humm, following Latitude Pay’s exit from the market in 2023. Australian consumers most commonly use BNPL for general retail purchases such as clothing, household goods, and food. Its interest-free model is appealing, though around *** to *** percent of users report incurring late fees, with higher rates typically seen around January. Australia is now taking steps to regulate BNPL under credit laws.

The global payments industry, valued at $2.85 trillion in 2025, is experiencing robust growth, projected to maintain a Compound Annual Growth Rate (CAGR) of 10.88% from 2025 to 2033. This expansion is fueled by several key factors. The increasing adoption of digital technologies, particularly mobile wallets and online payment platforms, is driving a significant shift away from traditional cash transactions. E-commerce continues its rapid growth, further boosting demand for secure and convenient online payment solutions. Furthermore, the expansion of financial inclusion in emerging markets is creating new opportunities for payment providers. The industry is also witnessing innovation in areas like Buy Now, Pay Later (BNPL) services and the integration of payments into various applications, creating a seamless payment experience for consumers. Increased regulatory scrutiny and data security concerns represent key challenges. The payments industry is segmented by payment mode (Point of Sale – Card Pay, Digital Wallet, Cash, Other; Online Sale – Other Online) and end-user industry (Retail, Entertainment, Healthcare, Hospitality, Other). While Point of Sale transactions remain significant, the rapid growth of digital wallets and online payments is reshaping the market landscape. Retail and e-commerce sectors are the largest contributors to industry revenue, but significant growth potential exists in healthcare and hospitality, driven by increasing digitalization and adoption of contactless payments in these sectors. Key players like Mastercard, Visa, Alipay, PayPal, and Apple Pay are fiercely competing through strategic partnerships, technological advancements, and expansion into new markets. Regional variations exist, with North America and Europe currently dominating market share, but the Asia-Pacific region is projected to experience the most significant growth due to its large and rapidly expanding digital economy and rising mobile penetration. Recent developments include: October 2023: Square Capital LLC announced the debut of Tap to Pay on iPhone in Australia, where Square would make the technology available to its sellers. Tap to Pay on iPhone is available in the Square Point of Sale, Square for Retail, and Square Appointments iOS apps. It allows vendors of all sizes to accept contactless payments directly from their iPhones, with no additional hardware required or expense.July 2023: Grow Finance announced that the company partnered with Pismo to issue new Mastercard credit cards for small businesses in Australia. This new offer gives business owners better cash flow, management, and capital to help them improve their businesses.April 2023: Stripe announced the launch of unified commerce solutions for Australia. Through this, businesses of all sizes can accept in-person payments using the Stripe Terminal SDK and Tap to Pay on Android or Stripe Readers to unify online and in-person commerce with a single integration.. Key drivers for this market are: E-commerce Supported by the Rise of M-commerce is Expected to Drive the Market, Enablement Programs by Key Retailers and Government Encouraging Digitization of the Market; Growth of Real-time Payments in Various Countries. Potential restraints include: E-commerce Supported by the Rise of M-commerce is Expected to Drive the Market, Enablement Programs by Key Retailers and Government Encouraging Digitization of the Market; Growth of Real-time Payments in Various Countries. Notable trends are: The Payments have been Sharing wide Traction Owing to Rising Retail Sector.

The Credit Card Issuance industry has contracted as the number of cards issued and balances accruing interest have fallen. Issuers have faced significant competition from other forms of payment like debit cards and BNPL services. The monthly value of debit card transactions has continued to surpass the monthly value of credit card transactions thanks to initiatives like the Reserve Bank of Australia's (RBA) least-cost routing initiative. BNPL services have also gained popularity with younger consumers who constitute a significant market for online sellers. That's why revenue is set to weaken by an annualised 5.3% over the five years through 2024-25, to $7.6 billion. To compete with sophisticated competition, credit card issuers have beefed up their reward and referral programs and integrated online payment, service and customer acquisition platforms into their operations. The Big Four banks dominate the industry and NAB's acquisition of Citigroup's Australian consumer banking business has expanded its collective market share. Economic conditions tied to inflationary pressures have ravaged consumer sentiment and appetites for spending through credit. Some customers have opted to pay down debt instead and have avoided taking on more. A sharp climb in interest rates over the past few years has compounded this dynamic, which is set to constrain industry performance in 2024-25, with revenue declining by an anticipated 0.9%. Credit card issuers' performance will improve over the coming years as economic conditions recover. Credit card issuance revenue is projected to expand at an annualised 2.0% through the end of 2029-30, to total $8.4 billion. The RBA is forecast to slash the cash rate once inflation falls within the central banks' target band, lifting credit card issuer profit margins as funding costs drop. Alternative payment methods, like BNPL services, debit transactions and other fintech solutions, are on track to sap away demand for credit cards. However, easing inflationary pressures and lower interest rates over the medium term are set to spur household consumption expenditure and credit card use. In response to the fierce competition, issuers will emphasise innovation and enhance their rewards and points systems to entice consumers.

Nearly three out of four Australians were aware of buy now, pay later payment options in early 2021, with one service especially being well known. According to a survey, around ** percent of consumers in Australia are aware of Afterpay - a figure that was roughly twice as high as it was in September 2018. Competitor Zip was known to nearly half of Australian consumers. Reaching almost *********** users, the country is regarded as one of the top countries in the world for BNPL.

The Australian Fintech market, valued at $4.11 billion in 2025, is experiencing robust growth, projected to expand at a Compound Annual Growth Rate (CAGR) of 10.32% from 2025 to 2033. This expansion is driven by several key factors. Firstly, the increasing adoption of smartphones and high internet penetration rates among Australians fuels the demand for convenient and accessible financial services. Secondly, a supportive regulatory environment encouraging innovation and competition within the sector fosters growth. Government initiatives aimed at promoting digital financial inclusion further contribute to market expansion. The rising popularity of Buy Now Pay Later (BNPL) services, coupled with the growing demand for digital lending and investment platforms, significantly contributes to this growth. Furthermore, the increasing awareness and adoption of online insurance platforms are also key drivers. Competition among established players like Afterpay Touch, Judo Bank, and Wise, alongside innovative startups like Zeller and Airwallex, fuels innovation and drives down costs for consumers. However, the market also faces challenges. Data security and privacy concerns remain paramount, requiring robust cybersecurity measures from fintech companies. Regulatory hurdles and compliance costs can also impede the growth of smaller players. Maintaining consumer trust and addressing potential risks associated with rapid technological advancements are crucial for sustained market growth. The segmentation of the market, with strong growth in areas like money transfers, digital lending, and online insurance, indicates promising avenues for future investments and expansion. The continued development of open banking infrastructure and the integration of emerging technologies such as AI and blockchain will further shape the future trajectory of the Australian Fintech market. This makes it a dynamic and highly attractive sector for both established players and new entrants. Recent developments include: March 2023: Financial platform Airwallex secured a payment business license in China, following the successful acquisition of a 100% stake in Guangzhou Shang Wu Tong Network Technology Co., Ltd., an information and online payment services company., February 2023: Fintech Zeller took on the big four banks to offer financial services to the small business sector, launching a new transaction account, debit card, and app.. Notable trends are: Digital ID Framework Witnessing Growth in Australia Fintech Market.

The Custody, Trustee and Stock Exchange Services has experienced dynamic shifts driven by globalisation, digital revolution and market volatility over the past few years. Although the number of stock market trades has climbed, investors and superannuation funds have gravitated towards international markets to diversify their portfolios over the past few years, slowing revenue growth for domestic stock exchanges and share registry services. Despite the trend, Guzman and Gomez's recent IPO, the largest on the ASX in three years - could signal a potential revival in domestic stock exchange interest. Competition within the industry has heightened over the past few years. The payment space has experienced fierce competition, but the growing digital payments and online shopping segments have propelled credit card usage. Despite the booming popularity of alternative payment methods like buy now pay later (BNPL), credit card providers have boosted their appeal through attractive loyalty and reward programs, spurring industry growth. The inherently volatile financial markets and consumer sentiment heavily influence services like stock exchanges share registries and credit card administration. Incidents like the pandemic have adversely impacted service providers' performance in the two years through 2020-21. However, despite market fluctuations, the industry's wide range of services has helped moderate revenue volatility. Therefore, revenue has risen at an annualised 0.7% to $13.0 billion over the five years through 2024-25, including a revenue uptick of 0.5% in the current year. The industry is on track to recover over the next few years. Consumer sentiment and business confidence are set to rise, encouraging more clients to seek out custody, trustee and stock exchange services. Anticipated growth of the All Ordinaries Index, the value of funds under management (FUM) and superannuation funds' assets under management (AUM) will fuel industry expansion. However, digitalisation in the financial services sector will introduce new entrants, creating a challenging environment for traditional service providers and placing downward pressure on profitability. Revenue is forecast to rise at an annualised 1.9% to $14.3 billion over the five years through 2029-39.

The Spanish payments market, experiencing robust growth mirroring global trends, presents a compelling investment landscape. Driven by increasing digital adoption, particularly among younger demographics, and a burgeoning e-commerce sector, the market is projected to maintain a healthy CAGR. While precise figures for the Spanish market size are unavailable, we can extrapolate based on the global CAGR of 9.60% and the significant contribution of the Spanish economy to the European Union. Considering Spain's substantial retail, tourism, and entertainment sectors, its payments market likely reflects a considerable portion of the broader European market. The growth is fueled by the proliferation of digital wallets, mobile payments, and contactless transactions, replacing traditional cash payments. Furthermore, the expansion of Buy Now, Pay Later (BNPL) services and increasing adoption of innovative payment technologies are key contributing factors. Regulatory changes promoting financial inclusion and cybersecurity enhancements also contribute to this growth. However, challenges remain. While Spain is making strides in digital payments, a significant portion of the population, particularly older demographics, may still prefer cash transactions. The competition among established players and emerging fintechs is fierce, requiring adaptability and innovation to maintain market share. Furthermore, concerns around data security and fraud prevention need continued attention to maintain consumer confidence and sustain market growth. Overall, the Spanish payments market offers significant opportunities for businesses that can effectively cater to the evolving needs and preferences of consumers, navigate regulatory landscapes, and implement robust security measures. The market's future success hinges on fostering technological innovation, enhancing consumer trust, and addressing lingering infrastructural gaps. Recent developments include: May 2022 - Adyen announced that it expanded its partnership with Afterpay Limited, one of the leading BNPL providers. Afterpay has partnered with Adyen to process payments in key markets such as Australia, New Zealand, Canada, Europe, the United States, and the United Kingdom to support the company's global growth and momentum., March 2022 - Skrill has launched a new and innovative Skrill Prepaid Mastercard for Apple Pay for fast and secure contactless payments. Users can add both virtual and physical Skrill Prepaid Mastercards to Apple Pay, making it safer to pay in stores, apps, and the web using iPhone, Apple Watch, iPad, or Mac.. Key drivers for this market are: High adoption of e-commerce, including the rise of mobile and online payments, supported by increased consumer purchasing power, Enablement Programs by Key Retailers and Government encouraging digitization and contactless payments in the market. Potential restraints include: High adoption of e-commerce, including the rise of mobile and online payments, supported by increased consumer purchasing power, Enablement Programs by Key Retailers and Government encouraging digitization and contactless payments in the market. Notable trends are: Retail industry to see significant growth in the country.

As of September 2023, Block, Inc was the largest Buy Now, Pay Later (BNPL) company listed on the Australian Securities Exchange (ASX) with a market capitalization of over **** billion Australian dollars. At the end of January 2022, U.S. payment firm Block, Inc acquired the Australian market leader Afterpay Limited.

Afterpay’s business model

Founded in Australia in 2014, Afterpay offers a BNPL service that allows both in-store and online customers to purchase a product immediately while paying it off in installments. Afterpay’s income consists of processing fees from the merchant, and late payment fees from the consumer. In Australia and New Zealand, the company’s segment income in the 2021 financial year reached *** million Australian dollars, with the number of active customers in the millions.

BNPL’s wide reach

BNPL services are widely used in Australia with users stating convenience of use as a main reason for using BNPL as a payment option. Australia was one of the leading countries globally in terms of BNPL's market share of domestic e-commerce payments. As of early 2021, the large majority of Australian consumers were at least aware of BNPL as a payment option, with the service looking likely to remain as a viable payment option into the future.