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Australia Buy Now Pay Later Business and Investment Opportunities

Australia Buy Now Pay Later Business and Investment Opportunities

According to PayNXT360, BNPL payments in the country are expected to grow by 57.0% on an annual basis to reach US$22,062.3 million in 2022. Medium to long term growth story of BNPL industry in Austra...

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
Summary
According to PayNXT360, BNPL payments in the country are expected to grow by 57.0% on an annual basis to reach US$22,062.3 million in 2022.

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 32.5% during 2022-2028. The BNPL Gross Merchandise Value in the country will increase from US$14,056.7 million in 2021 to reach US$119,277.8 million by 2028.

Australian consumers have been one of the early adopters of the buy now pay later (BNPL) payment method globally. The explosion in the popularity of the BNPL payment method during the global pandemic outbreak has seen many traditional financial services firms, including banks, rapidly move into the BNPL space, either in collaboration with established BNPL providers or introducing their deferred payment service, despite initial hesitancy and skepticism about these payment arrangements. 

The medium to the long-term growth outlook for the BNPL sector remains strong in Australia, as payment adoption is expected to grow steadily among consumers across different age groups. Recent moves by BNPL providers, such as Afterpay, also indicate where the next growth phase of the BNPL industry may come from. The Australia-based firm, which Square has acquired, is making inroads in the physical 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, PayNXT360 expects in-store growth to overtake the online BNPL segment in Australia. With the enormous market reach offered by mobile payments, integration of BNPL services with digital wallets like Apple and Google Pay presents enormous new addressable markets. 

Banking institutions continue to enter the deferred payment segment with BNPL product launches in Australia 

With Australian consumers increasing their BNPL spending aggressively, the once hesitant traditional banking institutions continue to enter into the deferred payment segment by launching their BNPL services. Introducing these new BNPL services in the Australian market is expected to further pressure 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 the big four banks in Australia to offer BNPL products to customers. The bank started offering the NAB Now Pay Later services from July 2022 using the existing Visa credit card system. This means that the bank will not have to sign up merchants just like the standalone operators such as Afterpay and Zip do. The entry of NAB into the BNPL segment will put additional pressure on standalone operators who are battling corporate losses amid rising interest rates which have made it harder for players to survive. 

The BNPL service of NAB comes on top of similar services launched by CBA and ANZ, which leaves Westpac the only one of the big four currently not providing a BNPL product. For existing pure-play BNPL operators, the entry of banks will further cause a massive squeeze in the segment, as the market in Australia has already peaked, and growth is expected to slow down from the short-term perspective. 

BNPL providers are expanding their services into new product categories to drive growth amid rising competition 

Amid the growing competition in the Australian BNPL industry, firms are expanding their services into new product categories to gain more traction among consumers and drive growth. For instance, 

• In March 2022, Fupay, the Australian Fintech firm, announced that it is expanding BNPL products to petrol and groceries. After expanding into rent in 2021, the domestic BNPL player announced new partnerships in the fuel and grocery sector with United Petroleum, IGA Marketplace, and Foodworks. This move comes amid an expansion in payments services across the board, as emerging Fintech firms continue to compete and challenge the big banks. 

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

• In March 2022, Afterpay announced that the firm had entered into a strategic collaboration with DoorDash, one of the leading global 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. 

PayNXT360 expects the trend to grow further into momentum as players seek to expand their services into more product categories amid the growing competition in the Australian BNPL market. 

Mergers and acquisitions deals are expected to increase as players consolidate to survive the increased competition and rising interest rates 

In 2022, the BNPL sector in Australia is likely to see more mergers and acquisition deals as firms consolidate to survive the increased competition and rising interest rates. Notably, Australia is expected to start hiking interest rates from a record low during the pandemic later this year. With firms facing higher costs in borrowing funds, the margins derived from providing interest-free installment loans for shoppers at the point of sale will get reduced. 
Moreover, the explosive revenue growth achieved by the BNPL sector over the last two years during the global pandemic has attracted investments from global tech giants such as Apple Inc. and PayPal Holdings Inc., which will likely crowd out smaller BNPL firms from the short to medium-term perspective. As a result of this, PayNXT360 projects that most of the startups will either be purchased or go out of business without the ability to raise more investment for survival. 
Scope
This report provides in-depth, data-centric analysis of Buy Now Pay Later industry in Australia . Below is a summary of key market segments:

Australia  BNPL Market Size and Spending Pattern
• Gross Merchandise Value Trend Analysis 
• Average Value Per Transaction Trend Analysis 
• Transaction Volume Trend Analysis 

Australia  Buy Now Pay Later Operational KPIs
• Buy Now Pay Later Revenues, 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 & Other Income, 2019 – 2028
• Buy Now Pay Later Accounts, 2019 – 2028
• Buy Now Pay Later Bad Debt, 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 Shopping: Market Size and Forecast
• 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
• Gross Merchandise Value Trend Analysis 
• Average Value Per Transaction Trend Analysis 
• Transaction Volume Trend Analysis

Australia  Buy Now Pay Later in Leisure & Entertainment: Market Size and Forecast
• 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
• Gross Merchandise Value Trend Analysis 
• Average Value Per Transaction Trend Analysis 
• Transaction Volume Trend Analysis

Australia  Buy Now Pay Later in Other: 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
• Buy Now Pay Later Sales Uplift by Product Category
• Buy Now Pay Later Spend Share by Age Group
• Buy Now Pay Later Gross Merchandise Share by Income 
• Buy Now Pay Later Gross Merchandise Value Share by Gender
• Buy Now Pay Later Adoption Rationale Gross Merchandise Value Analysis
Reason 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 through essential KPIs such as Gross Merchandise Value, Volume, and Average Value Per Transaction.

• Insights into Opportunity by end-use sectors – Get market dynamics by end-use sectors to assess emerging opportunity across various end-use sectors.

• Develop Market Specific Strategies: Identify growth segments and target specific opportunities to formulate BNPL strategy; assess market specific key trends, drivers, and risks in the BNPL industry.

• Get Insights into Consumer Attitude and Behaviour: Drawing from 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
Table of Contents
 1. About this Report
1.1 Summary
1.2 Methodology
1.3 Disclaimer

2. Australia BNPL Market Size and Future Growth Dynamics
2.1 Consumer Behavior
2.2 Competitive Landscape and Growth Strategies
2.3 Market Share
2.4 Regulatory Trends

3. Australia Buy Now Pay Later Industry Attractiveness
3.1 Australia Buy Now Pay Later – Gross Merchandise Value Trend Analysis, 2019-2028
3.2 Australia Buy Now Pay Later – Average Value Per Transaction Trend Analysis, 2019-2028
3.3 Australia Buy Now Pay Later – Transaction Volume Trend Analysis, 2019-2028

4. Australia Buy Now Pay Later Operational KPIs
4.1 Buy Now Pay Later Revenues, 2019 – 2028
4.2 Buy Now Pay Later Share by Revenue Segments
4.3 Buy Now Pay Later Merchant Commission, 2019 – 2028
4.4 Buy Now Pay Later Missed Payment Fee Revenue, 2019 – 2028
4.5 Buy Now Pay Later Pay Now & Other Income, 2019 – 2028
4.6 Buy Now Pay Later Accounts, 2019 – 2028
4.7 Buy Now Pay Later Bad Debt, 2019 – 2028

5. Australia Buy Now Pay Later Spend Analysis by Channel
5.1 Buy Now Pay Later Market Share by Channel, 2019 – 2028
5.2 Buy Now Pay Later Online Channel Market Size and Forecast, 2019 – 2028
5.3 Buy Now Pay Later POS Channel Market Size and Forecast, 2019 – 2028

6. Australia Buy Now Pay Later Snapshot by End-Use Sector
6.1 Buy Now Pay Later Market Share by End-Use Sector – Emerging Avenues and Future Growth Prospects
6.2 Buy Now Pay Later Sales Uplift by End-Use Sector
6.3 Buy Now Pay Later Share by Retail Product Category

7. Australia Buy Now Pay Later in Retail Shopping: Market Size and Forecast, 2019 – 2028
7.1 Australia Buy Now Pay Later Retail Shopping – Gross Merchandise Value Trend Analysis, 2019-2028
7.2 Australia Buy Now Pay Later Retail Shopping – Average Value Per Transaction Trend Analysis, 2019-2028
7.3 Australia Buy Now Pay Later Retail Shopping – Transaction Volume Trend Analysis, 2019-2028

8. Australia Buy Now Pay Later in Home Improvement: Market Size and Forecast, 2019 – 2028
8.1 Australia Buy Now Pay Later Home Improvement – Gross Merchandise Value Trend Analysis, 2019-2028
8.2 Australia Buy Now Pay Later Home Improvement – Average Value Per Transaction Trend Analysis, 2019-2028
8.3 Australia Buy Now Pay Later Home Improvement – Transaction Volume Trend Analysis, 2019-2028

9. Australia Buy Now Pay Later in Leisure & Entertainment: Market Size and Forecast, 2019 – 2028
9.1 Australia Buy Now Pay Later Leisure & Entertainment – Gross Merchandise Value Trend Analysis, 2019-2028
9.2 Australia Buy Now Pay Later Leisure & Entertainment – Average Value Per Transaction Trend Analysis, 2019-2028
9.3 Australia Buy Now Pay Later Leisure & Entertainment – Transaction Volume Trend Analysis, 2019-2028

10. Australia Buy Now Pay Later in Healthcare and Wellness: Market Size and Forecast, 2019 – 2028
10.1 Australia Buy Now Pay Later Healthcare and Wellness – Gross Merchandise Value Trend Analysis, 2019-2028
10.2 Australia Buy Now Pay Later Healthcare and Wellness – Average Value Per Transaction Trend Analysis, 2019-2028
10.3 Australia Buy Now Pay Later Healthcare and Wellness – Transaction Volume Trend Analysis, 2019-2028

11. Australia Buy Now Pay Later in Other Segment: Market Size and Forecast, 2019 – 2028
11.1 Australia Buy Now Pay Later Other Segment – Gross Merchandise Value Trend Analysis, 2019-2028
11.2 Australia Buy Now Pay Later Other Segment – Average Value Per Transaction Trend Analysis, 2019-2028
11.3 Australia Buy Now Pay Later Other Segment – Transaction Volume Trend Analysis, 2019-2028

12. Australia Buy Now Pay Later Analysis by Consumer Attitude and Behaviour
12.1 Buy Now Pay Later Spend Share by Age Group
12.2 Buy Now Pay Later Gross Merchandise Share by Income
12.3 Buy Now Pay Later Gross Merchandise Value Share by Gender
12.4 Buy Now Pay Later Adoption Rationale

13. Further Reading
13.1 About PayNXT360
13.2 Related Research
List Of Table
Table 1: Australia Buy Now Pay Later – Gross Merchandise Value Trend Analysis (US$ Million), 2019-2028
Table 2: Australia Buy Now Pay Later – Average Value Per Transaction Trend Analysis (US$), 2019-2028
Table 3: Australia Buy Now Pay Later – Transaction Volume Trend Analysis (Thousand), 2019-2028
Table 4: Australia Buy Now Pay Later – Revenues (US$ Million), 2019-2028
Table 5: Australia Buy Now Pay Later – Merchant Commission (US$ Million), 2019-2028
Table 6: Australia Buy Now Pay Later – Missed Payment Fee Revenue (US$ Million), 2019-2028
Table 7: Australia Buy Now Pay Later Pay Now & Other Income (US$ Million), 2019-2028
Table 8: Australia Buy Now Pay Later – Accounts (Thousand), 2019-2028
Table 9: Australia Buy Now Pay Later – Bad Debt (US$ Million), 2019-2028
Table 10: Australia Buy Now Pay Later – Gross Merchandise Value by Online Channel (US$ Million), 2019-2028
Table 11: Australia Buy Now Pay Later – Gross Merchandise Value by POS Channel (US$ Million), 2019-2028
Table 12: Australia Buy Now Pay Later Retail Shopping – Gross Merchandise Value Trend Analysis (US$ Million), 2019-2028
Table 13: Australia Buy Now Pay Later Retail Shopping – Average Value Per Transaction Trend Analysis (US$), 2019-2028
Table 14: Australia Buy Now Pay Later Retail Shopping – Transaction Volume Trend Analysis (Thousand), 2019-2028
Table 15: Australia Buy Now Pay Later Home Improvement – Gross Merchandise Value Trend Analysis (US$ Million), 2019-2028
Table 16: Australia Buy Now Pay Later Home Improvement – Average Value Per Transaction Trend Analysis (US$), 2019-2028
Table 17: Australia Buy Now Pay Later Retail Shopping Home Improvement – Transaction Volume Trend Analysis (Thousand), 2019-2028
Table 18: Australia Buy Now Pay Later Leisure & Entertainment – Gross Merchandise Value Trend Analysis (US$ Million), 2019-2028
Table 19: Australia Buy Now Pay Later Leisure & Entertainment – Average Value Per Transaction Trend Analysis (US$), 2019-2028
Table 20: Australia Buy Now Pay Later Leisure & Entertainment – Transaction Volume Trend Analysis (Thousand), 2019-2028
Table 21: Australia Buy Now Pay Later Healthcare and Wellness – Gross Merchandise Value Trend Analysis (US$ Million), 2019-2028
Table 22: Australia Buy Now Pay Later Healthcare and Wellness – Average Value Per Transaction Trend Analysis (US$), 2019-2028
Table 23: Australia Buy Now Pay Later Healthcare and Wellness – Transaction Volume Trend Analysis (Thousand), 2019-2028
Table 24: Australia Buy Now Pay Later Other Segment – Gross Merchandise Value Trend Analysis (US$ Million), 2019-2028
Table 25: Australia Buy Now Pay Later Other Segment – Average Value Per Transaction Trend Analysis (US$), 2019-2028
Table 26: Australia Buy Now Pay Later Other Segment – Transaction Volume Trend Analysis (Thousand), 2019-2028
List of figures
Figure 1: PayNXT360’s Methodology Framework
Figure 2: Australia Buy Now Pay Later – GMV and Adoption Rationale
Figure 3: Australia Buy Now Pay Later – Share by Gender and Age Group
Figure 4: Australia Buy Now Pay Later – Market Share Analysis by Key Players (%)
Figure 5: Australia Buy Now Pay Later – Gross Merchandise Value Trend Analysis (US$ Million), 2019-2028
Figure 6: Australia Buy Now Pay Later – Average Value Per Transaction Trend Analysis (US$), 2019-2028
Figure 7: Australia Buy Now Pay Later – Transaction Volume Trend Analysis (Thousand), 2019-2028
Figure 8: Australia Buy Now Pay Later – Revenues (US$ Million), 2019-2028
Figure 9: Buy Now Pay Later Share by Revenue Segments
Figure 10: Australia Buy Now Pay Later – Merchant Commission (US$ Million), 2019-2028
Figure 11: Australia Buy Now Pay Later – Missed Payment Fee Revenue (US$ Million), 2019-2028
Figure 12: Australia Buy Now Pay Later Pay Now & Other Income (US$ Million), 2019-2028
Figure 13: Australia Buy Now Pay Later – Accounts (Thousand), 2019-2028
Figure 14: Australia Buy Now Pay Later – Bad Debt (US$ Million), 2019-2028
Figure 15: Australia Buy Now Pay Later – Gross Merchandise Value Market Share by Channel (%), 2019-2028
Figure 16: Australia Buy Now Pay Later – Gross Merchandise Value by Online Channel (US$ Million), 2019-2028
Figure 17: Australia Buy Now Pay Later – Gross Merchandise Value by POS Channel (US$ Million), 2019-2028
Figure 18: Australia Buy Now Pay Later – Market Share by End-Use Sector, 2021 Vs. 2028
Figure 19: Australia Buy Now Pay Later – Market Share by End-Use Sector, 2021
Figure 20: Australia Buy Now Pay Later – Market Share by Retail Product Category, 2021 
Figure 21: Australia Buy Now Pay Later Retail Shopping – Gross Merchandise Value Trend Analysis (US$ Million), 2019-2028
Figure 22: Australia Buy Now Pay Later Retail Shopping – Average Value Per Transaction Trend Analysis (US$), 2019-2028
Figure 23: Australia Buy Now Pay Later Retail Shopping – Transaction Volume Trend Analysis (Thousand), 2019-2028
Figure 24: Australia Buy Now Pay Later Home Improvement – Gross Merchandise Value Trend Analysis (US$ Million), 2019-2028
Figure 25: Australia Buy Now Pay Later Home Improvement – Average Value Per Transaction Trend Analysis (US$), 2019-2028
Figure 26: Australia Buy Now Pay Later Home Improvement – Transaction Volume Trend Analysis (Thousand), 2019-2028
Figure 27: Australia Buy Now Pay Later Leisure & Entertainment – Gross Merchandise Value Trend Analysis (US$ Million), 2019-2028
Figure 28: Australia Buy Now Pay Later Leisure & Entertainment – Average Value Per Transaction Trend Analysis (US$), 2019-2028
Figure 29: Australia Buy Now Pay Later Leisure & Entertainment – Transaction Volume Trend Analysis (Thousand), 2019-2028
Figure 30: Australia Buy Now Pay Later Healthcare and Wellness – Gross Merchandise Value Trend Analysis (US$ Million), 2019-2028
Figure 31: Australia Buy Now Pay Later Healthcare and Wellness – Average Value Per Transaction Trend Analysis (US$), 2019-2028
Figure 32: Australia Buy Now Pay Later Healthcare and Wellness – Transaction Volume Trend Analysis (Thousand), 2019-2028
Figure 33: Australia Buy Now Pay Later Other Segment – Gross Merchandise Value Trend Analysis (US$ Million), 2019-2028
Figure 34: Australia Buy Now Pay Later Other Segment – Average Value Per Transaction Trend Analysis (US$), 2019-2028
Figure 35: Australia Buy Now Pay Later Other Segment – Transaction Volume Trend Analysis (Thousand), 2019-2028
Figure 36: Australia Buy Now Pay Later – Share by Age Group in Gross Merchandise Value Terms
Figure 37: Australia Buy Now Pay Later – Share by Income Group in Value Terms
Figure 38: Australia Buy Now Pay Later – Share by Gender in Value Terms
Figure 39: Buy Now Pay Later – Adoption Rationale Gross Merchandise Value Analysis
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