54 Buy Now Pay Later statistics to identify payment trends

Buy Now Pay Later (BNPL) allows customers to purchase products immediately and defer payments over time. Think of it as a delay plan for the digital age, with the added bonus of enjoying your purchases as soon as possible.

Consumers around the world are accepting BNPL as an alternative to bank credit cards and loans. It’s a way to manage cash flow, break down significant expenses into manageable repayments, and satisfy your need for instant gratification at the click of a button.

The appeal is particularly palpable among younger generations who are wary of debt but also into e-commerce. From a business perspective, BNPL offers a value proposition. Retailers and e-commerce platforms use these services to improve customer experience, increase sales conversion rates and engage a wider base.

Many businesses use installment plan to provide BNPL options to their customers. They deliver the “I want it now” economy without adding an immediate financial burden to their customers, instilling brand loyalty and driving repeat purchases. Let’s look at some interesting BNPL statistics to understand the concept and how the market and users are reacting.

Best buy now pay later statistics

The concept of BNPL means that consumers can buy products and pay within a certain period of time. Let’s delve into the world of BNPL with the best industry statistics shaping this revolutionary trend.

• BNPL’s current user base is approximately 360 million.
• Swedish fintech company Klarna, a leading BNPL service, has nearly 1 million monthly active users.
• Klarna’s user base is 14 times larger than any other BNPL service with 147 million active users.
• 16% of 18 to 34 year olds use BNPL services.
• Sweden has the highest market share in the BNPL segment.
• Apparel appears as the most frequently purchased product through BNPL services.

• The number of BNPL users may double to 900 million by 2027.
• Due to the rapid growth of the BNPL industry, it is projected to reach $3.27 trillion by 2030.
• 1 in 10 US consumers regularly use BNPL services for payments.
• Of the 80% who haven’t tried BNPL, just over a quarter are at least somewhat interested.
• 48% of consumers have not yet used BNPL services and are not interested.

Global buy now pay later market leadership

The buy now pay later system has emerged as a game-changing force on the world stage. No longer limited to specific regions or demographics, it is reshaping retail and e-commerce worldwide.

Below are the global market statistics on how BNPL is redefining the future of financial transactions across continents.

• Sweden is the BNPL market leader, with Germany and Norway close behind.

• Sweden’s share of domestic BNPL e-commerce payments doubled, followed by Germany and Norway.
• New Zealand and Australia are the only non-European countries in the top 10 BNPL users, with the remaining eight from North West Europe.
• Despite Klarna’s influence in the US, PayPal Credit leads the BNPL market with 34.6 million users as of 2020, four times more than Klarna’s 7.9 million.
• Other popular BNPL service providers in the US include Affirm (5.6 million users), AfterPay (5.6 million users) and FuturePay (3 million users).
• Eight different BNPL services are available, each with more than 1 million users.

Buy now, pay later user statistics

The BNPL phenomenon is not only about the huge market valuations but also about the people who use these services. Millions of individuals around the world have embraced this innovative financial solution, changing the way e-commerce and retail trade.

• 22% of all BNPL users reside in the US.
• By 2025, almost half of Gen Z will use BNPL services.
• Klarna has seen significant growth in its monthly active users since 2019, reaching around 970,000 in September 2021.

• Forbes lists PayPal Credit as the leading BNPL service in the US.
• One in three BNPL users use the service every month.
• Payment clarity is the most important factor for BNPL users.
• Consumers typically pay for about four products through BNPL. Clothing is the most common purchase.
• 12% of consumers use BNPL services “non-stop”.
• Almost two out of five people plan to replace their credit cards with BNPL services.
• More than half of consumers regret making an expensive purchase.
• About 56% of consumers have fallen behind on payments.

Buy Now Pay Later User Demographics

Understanding the demographics behind the growing statistics in the BNPL arena leads to an understanding of the seismic shift in consumer finances.

• According to a survey of 2,000 respondents, men use BNPL more than women.
• The survey revealed that 55.8% of respondents used BNPL service. By gender, 62.8% males and 51.36% females have availed BNPL.
• Consumers between the ages of 18 and 34 are three times more likely to use BNPL regularly compared to consumers over 55.

• The largest user group belongs to the 18 to 34 age group, accounting for 41.6% of all BNPL users. This suggests that younger consumers who are familiar with digital platforms and are looking for more flexible payment options are more inclined to accept this new payment model.
• The 36 to 55 age group accounts for 31.6% of BNPL users. The significant take-up rate among this financially stable demographic can be attributed to their greater discretionary spending power and BNPL’s ability to facilitate better cash flow management.
• BNPL uptake is also significant among those aged 56 and over, with 26.8% use. It suggests that even older consumers, often considered less likely to use fintech solutions, are appreciating the benefits of BNPL services, such as budgeting for larger purchases and avoiding credit card interest.

Buy now pay later user preference statistics

The explosive growth of the BNPL industry is not just a story of market values ​​and user demographics. It is a story of the changing dynamics of preferences, choices and consumer behavior. Let’s shed some light on the motivations driving the trend.

• Payment clarity is the most important factor for BNPL users.

• Other reasons for using BNPL included cost control (39.1%), convenience (37.2%) and acceptance by a large number of merchants (36.7%).
• The least common reason was rewards offered, accounting for only 24.3% of responses.

Buy now, pay later shopping statistics

The BNPL revolution doesn’t just transform the way you pay. It also changes what you buy. As BNPL services become more and more popular, they are deeply influencing consumer shopping patterns.

• Consumers claim to pay on credit for an average of 3.8 items.
• The most common monthly installments range from $101 to $205.
• The average customer value of the last product purchased through BNPL was $689.
• Most of BNPL purchases are from clothes. 63.5% of respondents claimed to have used BNPL for this purpose.
• Entertainment followed with 30.3% of BNPL users purchasing in this category and reading material accounted for 29.4%.
• More than a third (35%) of consumers use BNPL “most of the time”.

Buy now, pay later is the future of lending

As the BNPL phenomenon continues its rapid expansion, its impact on the lending landscape promises to be profound. Let’s read about the trends, potential shifts and exciting prospects of the BNPL revolution.

• The value of BNPL loans in the US is projected to reach over $90 billion by 2023.
• BNPL’s lending is expected to grow significantly over the next few years, with forecasts projecting it to exceed $100 billion by 2024.
• By 2022, BNPL’s lending was estimated to reach $74 billion.
• The US BNPL market is growing at an average annual growth rate of 29.4%.
• Projected growth in 2024 indicates a further increase of $30 billion, bringing the total to $114 billion.
• BNPL industry value exceeds $150 billion worldwide.

Looking at the buy now pay later microscope

The acceptance of BNPL by a diverse range of consumers and the growth of partner businesses show that BNPL is more than just a fad. This is a transformative financial trend that is shaping the future of retail and e-commerce.

View these statistics in a broader context. The potential benefits for both businesses and consumers are significant, but so are the potential risks and challenges. As with any financial service, understanding the terms and potential pitfalls is important.

As BNPL continues its trajectory, businesses need to strategically weigh potential sales growth against the costs associated with these programs. Consumers should navigate these services responsibly, making sure they understand the terms of their contracts and can comfortably manage their payments.

Through smart usage and transparent practices, the BNPL model can be beneficial, delivering value to consumers and businesses while shaping the financial landscape of the future.

Learn more about how digital payments are shaping the global payments industry.