Buy Now Pay Later spending is set to double by 2023 in Australia – FIS study

Friday 13 March 2020 12:38 CET | News

UK-based intech FIS has released the FIS 2020 Global Payments Report detailing a stark rise in Australia’s BNPL purchases.

The Worldpay from FIS 2020 Global Payments Report shows BNPL schemes, which allow users to spread out repayments over regular (often fortnightly) installments, are the hot spending ticket for 2020 - and beyond. Raw data from the report reveals the market share of this payment method has increased from 3% of all

Ecommerce transactions in 2018 to 8% in 2019, and is forecasting just over double that growth again by 2023.
If 17% of online transactions will be happening via BNPL in three years, that means about one in five - more than 4 million people - will be using it as their preferred payment method across the country. The appeal of it is, generally, convenience. Up-front payment isn’t required when using BNPL, and repayments are made in even instalments that are (ideally) easy to manage. 

The report data shows a forecasted downturn from a combined 2019 credit and debit card ecommerce market share of 46% to just 28% in 2023. Mozo’s 2019 report also recorded almost half of respondents giving their credit cards the flick in favour of BNPL services. Cash and cards still rule in-store though, dominating point-of-sale purchases at 87% in 2019 with a less dramatic forecasted dip to 79% in 2023.

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Keywords: FIS, fintech, buy now pay later, Australia, payments , online payments, financial technology, BNPL
Categories: Payments & Commerce
Countries: Australia
This article is part of category

Payments & Commerce