As"buy now, pay later" (BNPL) options become increasingly prevalent globally, Australia is leading the way by a significant margin according to a PYMNTS Report .
In the latest edition of the "How the World Does Digital" report the survey gathered data from 67,000 consumers across 11 countries, representing about half of the world’s gross domestic product, to assess their digital engagement habits.
The findings revealed that a small fraction of consumers used BNPL for their most recent eCommerce purchase — approximately 1% in most surveyed countries.
In the U.S., only 0.9% of consumers reported using BNPL for their last online purchase. In contrast, this figure nearly triples in Australia, where 2.5% of consumers utilized BNPL services.
Australia’s adoption rate is the highest, followed by the Netherlands at 2.1%.
The Data in Context
BNPL services like Afterpay and Zip originated in Australia and quickly gained traction. This early introduction allowed Australian consumers more time to integrate BNPL into their shopping routines compared to their U.S. counterparts.
However, Australia is now tightening regulations on BNPL services. A recent Reuters report highlighted that the Australian government has proposed a law requiring BNPL firms to check users' credit.
