With Buy Now, Pay Later (also known as BNPL), shoppers have yet another option when they don’t have the money available to pay for something upfront. So, if you don’t like using credit cards or you don’t qualify for credit cards, this can be a great way to purchase the things you need and then pay for them later.
How popular is Buy Now, Pay Later, and what are some interesting facts surrounding this type of service? Continue reading to access some fascinating stats.
- When shoppers use Buy Now, Pay Later, the average purchase amount is $104.3
- Many shoppers (39.3%) who utilize Buy Now, Pay Later services do so in order to avoid credit card interest.3
- Buy Now, Pay Later global market share is around 2.1%. The BNPL market share in the United States is roughly 2%, and it’s roughly 5% in the United Kingdom. In Germany, it’s around 18%, and in Australia, it’s around 10%.6
- Around 45% of a survey’s respondents stated they used Buy Now, Pay Later to purchase things that otherwise would not be within their budget.2
- The most common types of purchases made with the help of BNPL services include electronics, clothing and fashion items, furniture or appliances, household essentials, groceries, and games, movies, music, or books.2
The Habits and Preferences of Those Who Use BNPL
There are a surprising number of options in the world of BNPL, with different service providers you can choose from. What are some of the most popular amongst consumers? And what are their spending habits like when using these services? Below are some stats that can give you a better idea of how shoppers behave.
- There are many companies that provide the Buy Now, Pay Later service, but the most popular is PayPal Credit, with 57% of survey respondents stating they use it. 29% of people said they use Afterpay, 28% prefer Affirm, and 23% prefer Klarna. Some of the least popular providers include Sezzle (8%) and Zebit (6%).1
- In terms of how often people take advantage of Buy Now, Pay Later when they are shopping, 29% of them stated they use it once every six months, while 22% said they use it once every three months. 20% of survey respondents stated they use it only once a year or less, whereas 19% stated they use it once a month. And a mere 2% of people said they use it more than once a week.1
- A survey also found that, when shopping online, 35% of people use Buy Now, Pay Later most of the time, compared to 12% who said they use all the time. And 13% of people said they rarely or never use it.1
The Impact of the COVID-19 Pandemic on Buy Now, Pay Later
The COVID-19 pandemic impacted people around the world in a variety of ways, affecting how they were able to shop, whether they were able to work and earn, and more. But did they take advantage of Buy Now, Pay Later options when they were available? Here are some stats that shed light on this topic.
- A survey found that 51% of people chose to use the Buy Now, Pay Later feature during the pandemic 1
- In 2021, around 55.8% of people who were surveyed stated that they had used Buy Now, Pay Later. This increased from 37.65% of people who said they used this service in 2020.2
- Around 64% of people who have utilized BNPL services said that they used it more since the outbreak of COVID-19.2
- Between the months of April and September in 2020, the number of monthly installs of BNPL apps doubled.5
Who Prefers Using Buy Now, Pay Later?
It seems that shoppers in different age groups have varying preferences when it comes to how they pay for the things they buy. Certain shoppers are more willing to use Buy Now, Pay Later services, as you will see in the stats below.
- Buy Now, Pay Later appears to be most popular among consumers between the ages of 18 and 24. In 2021, a survey found that 61.16% of them had used a BNPL service. On the other hand, this service is least popular with shoppers who are over the age of 54, with 40.88% of them stating that they had used it.2
- Even amongst those individuals who have not used Buy Now, Pay Later yet, there is a willingness to give it a try at some point, with 53.09% of survey respondents stating that they would be at least somewhat likely to take advantage of BNPL in the next year.2
- A report found that around 87% of people between 22 and 44 years of age were interested in Buy Now, Pay Later services.3
The Drawbacks of Using Buy Now, Pay Later
Despite the many benefits that can come with using a Buy Now, Pay Later option, there are some things to keep in mind. For example, there are a few drawbacks, such as late fees, that are associated with BNPL. Below are some stats showcasing the negative side of Buy Now, Pay Later.
- In 2021, when survey participants were asked about how likely they’d be to make a late payment on a BNPL service in the next year, nearly 19% said they were very likely to do it, but nearly 31% stated that it would be very unlikely that they would do that.2
- Roughly 9.9% of American adults have stated that they made an error when using BNPL.4
- The most common mistakes that are made by shoppers when using Buy Now, Pay Later include making an impulse purchase and having to pay a late fee.4
- When it comes to who is most likely to make a mistake when using a BNPL service, it’s the 55 to 64 age group.4
Overall, Buy Now, Pay Later providers have been doing very well as more and more people decide to use this type of service.