DUBLIN--(BUSINESS WIRE)--The "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 - Q1 2023 Update" report has been added to ResearchAndMarkets.com's offering.

BNPL payments are expected to grow by 20.5% on an annual basis to reach US$14,241.5 million in 2023.

The BNPL payment industry in Australia has recorded strong growth over the last four quarters, supported by increased ecommerce penetration.

Medium to long term growth story of BNPL industry in Australia remains strong. BNPL payment adoption is expected to grow steadily over the forecast period, recording a CAGR of 10.9% during 2023-2028. The BNPL Gross Merchandise Value in the country will increase from US$11,822.1 million in 2022 to reach US$23,936.7 million by 2028.

The Australian buy now pay later (BNPL) industry, which has until now enjoyed optimum conditions to thrive, is facing a series of fresh hurdles from the regulators. The absence of interest charges has exempted the BNPL business model from the Credit Act. However, as the regulators look at adding consumer protection, the sector might soon be regulated under the National Consumer Credit Protection Act.

Furthermore, the operations of the BNPL firms have been hit significantly amid the high-interest rate environment. The surge in the cost of living is also affecting the consumers' ability to repay BNPL loans. In the short-term, spike in the usage of BNPL loans is expected as cash-constrained consumers move into the Christmas period. However, the market is projected to remain under pressure due to macroeconomic and regulatory factors.

Australia considers regulating BNPL firms like credit card providers

A senate inquiry into fintech firms in 2020 concluded that there was no need to treat BNPL providers like credit card firms. Both the Reserve Bank and Australian Securities and Investments Commission had multiple looks at the sector and reached a similar conclusion. However, the hardship faced by customers and the increasing noise from consumer groups has forced the hand of regulators in Australia.

In November 2022, the Australian Treasury announced three options for regulating the industry. The first approach implies stronger affordability checks and self-regulation for BNPL firms. The second option would bring the industry partially under the Credit Act, meaning that the providers will have to obtain credit licenses to remain operational. The third option would bring the entire sector under the same umbrella as credit card firms.

While Zip is expected to prefer the second option as it already has a credit license, Afterpay would prefer the first, and lesser restrictive option. The sector will be regulated in Australia, just the road the government will take to impose regulation on the BNPL industry is not clear.

BNPL providers are looking to tap into the growing travel spending through strategic alliances

Travel and tourism activities have recorded a strong rebound in Australia, after the pandemic-induced slump and travel restrictions. With consumers increasingly spending on travel, despite the current macroeconomic factors that have forced many to cut down on their expenses, BNPL providers forging alliances to tap into the potentially high-growth market.

In November 2022, Zip, the largest BNPL provider in Australia, announced that the firm had entered into a strategic collaboration with Jetstar, the leading low fare airline.

Under the alliance, Zip will provide travellers with a more flexible way to pay for their airfares. In the travel segment, Zip also entered into a strategic partnership with Qantas in May 2022. With customers ramping up their travel activities, the strategic collaboration just ahead of the holiday season is expected to drive more volume for the firm.

Like Zip, rival Afterpay also entered into a strategic collaboration with Expedia in November 2022. The alliance with the travel booking platform will allow Afterpay users to pay for airfare, hotel booking, and other travel-related expenses.

With travellers becoming increasingly budget-conscious, the demand for BNPL products is expected to remain strong in the travel and tourism sector from the short to medium-term perspective. Consequently, the publisher foresees more such strategic alliances in the Australian market.

This report provides a detailed data centric analysis of Buy Now Pay Later (BNPL) industry, covering market opportunities and risks across a range of retail categories. With over 75 KPIs at country level, this report provides a comprehensive understanding of BNPL market dynamics, market size and forecast, and market share statistics.

It breaks down market opportunity by type of business model, sales channels (offline and online), and distribution models. In addition, it provides a snapshot of consumer behaviour and retail spend dynamics in Australia . KPIs in both value and volume term help in getting in-depth understanding of end market dynamics.

Reasons to buy

• Get a comprehensive understanding of market dynamics for Buy Now Pay Later: Identify market opportunities, major trends, and forecasting (2019-2028). Understand market trends through crucial KPIs like Gross Merchandise Value, Volume, and Average Value per Transaction, to stay ahead of the curve.
• Insights by end-use sectors: Evaluate new opportunities across multiple end-use sectors, and obtain market dynamics by end-use sectors in order to swiftly catch up with the latest and upcoming developments in BNPL markets.
• Market-specific strategies: Identify growth segments focused on specific opportunities, and analysing market-specific risks and important trends in the BNPL sector with our exclusive blend of quantitative forecasting and innovative insights.
• Gain knowledge of consumer attitudes and actions: This report identifies and interprets important Buy Now Pay Later KPIs, such as spend by age, gender, and income level, using data from a proprietary survey.
• Develop proactive and lucrative business strategies through market intelligence and forward-looking analysis of BNPL market spend and major opportunities in Australia .

Scope

Australia Buy Now Pay Later Market Share Analysis by Key Players

• Afterpay
• Zippay
• OpenPay
• Payright
• humm
• Laybuy
• Splitit
• Sezzle
• Klarna
• Paypal
• LimePay
• Brighte
• Art Money

Australia BNPL Market Size and Spending Pattern, 2019-2028

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

Australia Buy Now Pay Later Revenue Analysis, 2019-2028

• 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, 2019-2028

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

Australia BNPL by Purpose, 2019-2028

• Convenience - Short Term Loans
• Credit - Loan Term Loans

Australia BNPL by Business Model, 2019-2028

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

Australia BNPL by Merchant Ecosystem, 2019-2028

• Open Loop System
• Closed Loop System

Australia BNPL by Distribution Model Analysis, 2019-2028

• Standalone
• Banks & Payment Service Providers
• Marketplaces

Australia BNPL Analysis by Channel, 2019-2028

• Online Channel
• POS Channel

Australia Buy Now Pay Later in Retail Shopping: Market Size and Forecast, 2019-2028

• 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, 2019-2028

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

Australia Buy Now Pay Later in Travel/Entertainment: Market Size and Forecast, 2019-2028

• 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, 2019-2028

• 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, 2019-2028

• 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, 2019-2028

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

Australia Buy Now Pay Later in Groceries: 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

For more information about this report visit https://www.researchandmarkets.com/r/jxx1z1

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