More and more Aussies are looking to spread out their online payments, with Buy-Now-Pay-Later (BNPL) payment methods – such as local company Afterpay – now accounting for 14 per cent of all online purchases.
That’s according to a new report by BigCommerce, which found BNPL to be particularly popular among the younger generations.
Almost one in five shoppers (18 per cent) aged between 25 and 34 used BNPL. This was compared to just nine per cent of 55-64-year-olds.
“Age has a large impact on the type of online payment method chosen. For the online retailer, the two most important age driven variations are around the use of PayPal and BNPL,” the report says.
“BNPL has strong appeal for the young adult market (25 to 34-year-olds) but is less appealing for older shoppers.”
The BigCommerce report also found that the prevalence of BNPL varies across categories.
“There are multiple Buy Now, Pay Later (BNPL) providers in the market and collectively they account for 14 per cent of all online transactions however this proportion various significantly across categories,” says the report
“For example, 19 per cent of all online beauty product purchases and 18 per cent of all online fashion purchases were made via BNPL. This drops to 10 per cent for online food and drink purchases.”