Buy now pay later (BNPL) allows customers to purchase products immediately and postpone payment later. Think of it as a classic system for the digital age with the added bonus of being able to enjoy your purchases sooner.
Consumers around the world are embracing BNPL as an alternative to bank cards and credit cards. It’s a way to manage cash flow, divide costs into manageable segments, and meet customer satisfaction requirements instantly with the click of a button.
This request is understandable, especially among the younger generations who are more cautious about credit and doing e-commerce. From a business perspective, BNPL offers a value proposition. Sellers and e-commerce platforms use these services to improve customer experience, increase sales conversions, and attract more traffic.
Many businesses use it installment plan to provide BNPL options to their customers. They cater to the “I want it now” economy without adding financial stress to their customers, increasing their brand loyalty and encouraging repeat purchases. Let’s look at the interesting statistics of BNPL to understand the concept and how the market and users react.
Buy more now, pay later statistics
BNPL’s concept means that consumers can buy goods and pay over time. Let’s explore the world of BNPL, and the top figures of the company that are making this change.
- BNPL’s global users are around 360 million.
- Swedish fintech company Klarna, which is leading the operation of BNPL, has about 1 million monthly users.
- Klarna’s user base is 14 times larger than any other BNPL service, with 147 million users.
- 16% of 18 to 34 year olds use BNPL services.
- Sweden has the largest market share of BNPL.
- Clothing emerges as a frequently purchased item through BNPL services.
US residents are showing interest in BNPL services.
Source: To ride
- The number of BNPL users is likely to double by 2027, reaching 900 million.
- Due to the rapid growth of BNPL’s business, it is expected to reach $3.27 trillion by 2030.
- One in 10 US consumers use BNPL services regularly when checking out.
- Of the 80% who have never tried BNPL, a little over a quarter are interested.
- 48% of consumers have not yet used BNPL services and are not interested.
Buy globally now, pay for market leadership later
The buy now, pay later option has emerged as a game-changing force around the world. Not limited to certain regions or populations, it is reshaping retail and e-commerce around the world.
Below are the global market statistics of how BNPL also predicts the financial future in all continents.
- Sweden is the market leader for BNPL, Germany and Norway are behind.
and monthly users of Klarna in the US,
Source: Tech Crunch
- Sweden’s share of domestic payments for BNPL e-commerce has increased, followed by Germany and Norway.
- New Zealand and Australia are the only non-European countries with BNPL’s top 10 users, with the remaining eight coming from northwest Europe.
- Despite Klarna’s impact in the US, PayPal Credit leads the BNPL market with 34.6 million users by 2020 – more than four times more than Klarna’s 7.9 million.
- Other popular BNPL providers in the US include Affirm (5.6 million users), AfterPay (5.6 million users), and FuturePay (3 million users).
- Eight BNPL services are available, each with more than 1 million users.
Buy now, pay for user statistics
BNPL’s surprise isn’t just about the market share – it’s about the people who use these services. Millions of people around the world have embraced this new way of making money, which has revolutionized the way e-commerce and brick-and-mortar retailers operate.
- 22% of all BNPL users are based in the US.
- By 2025, almost half of Gen Z will use BNPL services.
- Klarna has seen its monthly users increase significantly since 2019, reaching around 970,000 in September 2021.
people have used BNPL’s service at some point, and almost half make payments through this service.
Source: C+R Research
- Forbes lists PayPal Credit as BNPL’s leading US business.
- One in three BNPL users use this service every month.
- Clarity of fees is the most important thing for BNPL users.
- Consumers usually pay for four things through BNPL. Clothes are very expensive.
- 12% of consumers use BNPL services “regularly.”
- About two out of five people are planning to switch their credit cards with BNPL services.
- More than half of consumers regret making expensive purchases.
- About 56% of consumers are behind on payments.
Buy now, pay later demographics
In the BNPL circle, understanding the growing number of figures leads to an understanding of the changing financial situation of consumers.
- According to a survey of 2,000 respondents, men use BNPL more than women.
- The survey revealed that 55.8% of the respondents used the service of BNPL. By gender, 62.8% of men and 51.36% of women use BNPL.
- Consumers aged 18 to 34 are three times more likely to use BNPL compared to consumers aged 55 and over.
BNPL users use this service regularly, with 80% of users using it every six months.
- The largest user group is between 18 to 34 years of age, which constitutes 41.6% of all BNPL users. It means that young consumers, familiar with digital platforms and looking for flexible payment methods, are more likely to adopt a new payment method.
- The 36 to 55 age group constitutes 31.6% of BNPL users. The high number of children among the financially disadvantaged can be attributed to their ability to spend wisely and the ability of BNPL to help manage their finances.
- BNPL adoption is also important among those aged 56 and above, with 26.8% usage. It shows that even older consumers, who are often considered less likely to use fintech, appreciate the benefits of BNPL’s services, such as budgeting for large purchases and avoiding credit card interest.
Buy now, pay later user preferences statistics
The strong growth of BNPL companies is not only about the markets but also about the number of users. It’s a matter of preferences, choices, and changing consumer behavior. Let’s examine some of the factors that encourage the habit.
- Clarity of fees is the most important thing for BNPL users.
The survey responses confirm that clarity of interest rate or interest rate was the main reason for using BNPL services.
Source: Insider Intelligence
- Other reasons for using BNPL include the ability to manage money (39.1%), convenience (37.2%), and being accepted by many traders (36.7%).
- The least common reason was the rewards offered, which accounted for only 24.3% of the responses.
Buy now, pay later shopping statistics
BNPL’s changes do not just change the way you pay. It’s also changing what you buy. As BNPL’s operations expand, it has a greater impact on consumer behavior.
- Consumers say they pay about 3.8 times more for products.
- Monthly payments range from $101 to $205.
- The average price of the last product purchased by customers using BNPL was $689.
- Most of BNPL’s purchases are from clothing – 63.5% of respondents said they used BNPL for this purpose.
- Entertainment followed, with 30.3% of BNPL users shopping in this category, and digital accounts accounted for 29.4%.
- More than a third (35%) of consumers use BNPL “often.”
The future of buy now, pay later loans
As BNPL’s operations continue to grow rapidly, its influence on the lending space promises to be profound. Let’s read about what’s going on, the possible changes, and the exciting prospect of BNPL’s transformation.
- BNPL’s lending in the United States is expected to reach over $90 billion in 2023.
- Significant growth in BNPL’s lending is expected over the next few years, with forecasts expected to exceed $100 billion by 2024.
- By 2022, BNPL’s borrowings are expected to reach $74 billion.
- The US BNPL market is growing at an average annual growth rate of 29.4%.
- The forecasted growth in 2024 shows another increase of $30 billion, bringing it to $114 billion.
- BNPL companies have a global value of more than $150 billion.
Looking at buy now, pay later through the microscope
BNPL’s adoption among different buyers and the number of joint ventures shows that BNPL is not just a takeover. It is the economic revolution that is shaping the future of retail and e-commerce.
Look at these figures in many ways. The potential benefits for businesses and consumers are enormous, as are the potential risks. As with any financial activity, understanding the terms and potential pitfalls is important.
As BNPL continues to thrive, businesses need to carefully weigh the potential sales volume against the cost associated with these programs. Customers should review these services, make sure they understand what they’ve agreed to and manage their payments.
Through smart and transparent use, the BNPL brand can be successful, delivering value to consumers and businesses alike while shaping the future of the economy.
Learn more about how to do it digital payments they are creating global payment companies.