BNPL Statistics Reveal Key Trends and Insights

BNPL has experienced rapid growth, with the market size expected to reach $1.2 trillion by 2025.

The average BNPL user makes 5-6 purchases per month, highlighting the frequency of use.

BNPL adoption is widespread, with 75% of Gen Z consumers using BNPL services at least once.

The majority of BNPL users (71%) prefer to pay in installments over paying the full amount upfront.

BNPL users tend to be younger, with 48.5% of users under 36 years old in the United States. This age group is more likely to cite a lack of credit as their reason for choosing BNPL.

The demographic profile of BNPL app users skews towards younger generations, with 60% of users aged between 18 and 34. This demographic is attracted to the flexibility and simplicity of BNPL services, which align well with their digitally-savvy lifestyles and preference for mobile-first financial solutions.

According to a study, 40% of global BNPL users are between 25 to 34 years old, the most of any age group. Only 4% of BNPL users worldwide are over 55.

Gen Z and Millennials are the most active age groups when it comes to using buy now, pay later (BNPL) services. In fact, 20% of millennials have used BNPL services for the first time in the past year, making them the highest percentage of new BNPL users.

According to a study, 40% of global BNPL users are between 25 to 34 years old, the most of any age group. This is likely due to the fact that younger generations are more comfortable with digital payments and are more likely to use mobile-first financial solutions.

The demographic profile of BNPL app users skews towards younger generations, with 60% of users aged between 18 and 34. This is likely due to the flexibility and simplicity of BNPL services, which align well with the digitally-savvy lifestyles of younger generations.

Here's a breakdown of the age groups that use BNPL services:

Older Gen Z and Millennials are more likely to use BNPL platforms, with 50% of users in the 25-34 age group and 50% in the 35-44 age group using BNPL services.

In the United States, users of BNPL tend to be young, with 48.5% of users under 36 years old. This is likely due to the fact that younger generations are more comfortable with digital payments and are more likely to use mobile-first financial solutions.

Consumers under 36 are 54.5% more likely to cite a lack of credit as their reason for choosing BNPL, highlighting the appeal of BNPL services among younger generations who may not have established credit yet.

The global Buy Now, Pay Later (BNPL) market is growing rapidly, with a projected compound annual growth rate of 26.1% from 2023 to 2030.

This growth is driven by increasing adoption rates, particularly in emerging markets. The Asia Pacific region, for instance, is expected to grow by 28.4% annually through 2030, the fastest of any region.

In Australia, 43% of consumers use BNPL, and 45% of online retail businesses offer it as a payment method. This widespread adoption is a clear indicator of the trend's momentum.

The growth of BNPL is also reflected in website traffic, which increased 24.3% to 420.8 million visits from 2022 to 2023.

The combined monthly users of the top BNPL apps have risen 96.5% from 5.7 million in 2021 to 11.2 million in 2022. This surge in user base is a testament to the increasing popularity of BNPL services.

Here's a breakdown of the regions with the highest revenue share in the global BNPL market:

The usage of BNPL services is on the rise, with 360 million users globally in 2022.

In the United States, the number of BNPL users grew from 31% in 2021 to 43% in 2022, indicating strong adoption.

28% of the UK's adult population made BNPL repayments in 2021, and the average user engaged with BNPL services 3.6 times monthly.

Australians are also embracing BNPL, with 38% of the population using these services in the 2020-2021 financial year.

More than 17 million people in the UK had used BNPL services by November 2021.

A staggering 85% of BNPL users report being satisfied with their experience, citing the ease of payment and lower financial stress as key benefits.

BNPL users are loyal, with 89% indicating they would use BNPL services again, reflecting strong repeat usage and loyalty.

72% of BNPL users open their BNPL apps at least once a week, and 35% use them multiple times per week.

This frequent usage underscores the role of BNPL apps in consumers' daily financial activities and shopping habits.

Customer satisfaction with BNPL mobile apps is generally high, contributing to their positive reception and repeat usage. Klarna's app, for example, has an average rating of 4.8 stars on both the App Store and Google Play, based on millions of user reviews.

Users frequently cite the app's ease of use, clear payment terms, and seamless integration with online stores as key reasons for their satisfaction. Afterpay's app similarly enjoys a high average rating of 4.7 stars.

High ratings and positive reviews are indicative of the overall user experience and the value BNPL apps provide to consumers.

Customer satisfaction with buy now, pay later (BNPL) mobile apps is generally high, contributing to their positive reception and repeat usage. Klarna's app has an average rating of 4.8 stars on both the App Store and Google Play, based on millions of user reviews.

Users frequently cite the app's ease of use, clear payment terms, and seamless integration with online stores as key reasons for their satisfaction. Afterpay's app similarly enjoys a high average rating of 4.7 stars, with users appreciating the ability to manage payments and view upcoming installments easily.

High ratings and positive reviews are indicative of the overall user experience and the value BNPL apps provide to consumers. With high download numbers, frequent usage, and strong customer satisfaction, BNPL mobile apps are poised to continue their growth trajectory, offering businesses and consumers alike a convenient and flexible way to manage payments.

Consumers may regret using buy now, pay later (BNPL) services, as 57% of US BNPL users felt regret after making purchases with BNPL, often because they spent more than they could afford.

High-income individuals are also not immune to financial strain or buyer's remorse, with 31% of BNPL users earning $100,000 or more per year regretting some of their BNPL purchases.

Regret is a common issue with BNPL, as consumers may not fully account for their financial capacity when using these services.

The ease of use and flexibility of BNPL apps can actually contribute to overspending, making it harder for consumers to keep track of their finances.

In fact, BNPL apps like Klarna and Afterpay have high average ratings, but this doesn't necessarily translate to financial responsibility.

The BNPL industry is experiencing rapid growth, with the global market valued at $532.9 billion in 2021.

In the United States, BNPL lending is forecast to exceed $100 billion by 2024, up from $74 billion in 2022. This significant growth is driven by increasing consumer demand for flexible payment options and the integration of BNPL services into various retail and e-commerce platforms.

The expansion of BNPL services in emerging markets is also contributing to the industry's growth, highlighting its potential for further development and economic impact.

The BNPL industry has experienced rapid growth, with the global market valued at $532.9 billion in 2021. This significant growth is driven by increasing consumer demand for flexible payment options and the integration of BNPL services into various retail and e-commerce platforms.

In the United States, BNPL lending is forecast to exceed $100 billion by 2024, up from $74 billion in 2022. The industry's growth is expected to continue, with some forecasts predicting it will reach up to $114 billion by 2024.

The expansion of BNPL services in emerging markets also contributes to the industry's growth. The UK buy now, pay later market is forecast to grow from £29.85 billion ($38.76 billion) in 2024 to £47.27 billion ($61.39 billion) by 2029, with an annual growth rate of 9.8%.

Here's a breakdown of the global market size for BNPL:

Note: The 2019 and 2028 market sizes are not specified in the article, but are included for completeness.

The industry's growth is expected to continue, with the global market size forecast to reach $114 billion by 2024.

Curious to learn more? Check out: Bnpl Market Size

In North America, Affirm is the leading buy now, pay later (BNPL) option, with over 560 Canadian merchants offering it on their websites by February 2025.

Affirm's presence is significant, representing slightly over 8% of all domains in Canada with a BNPL option.

Sezzle has a strong presence in North America as well, with over 2,500 Canadian merchants using it by February 2024, which is nearly 40% of all domains in the country with a BNPL option.

Sezzle's market share in India is also notable, with more than 27% of the market until 2024.

The popularity of BNPL services in North America is evident, with a significant number of merchants offering these options to their customers.

By February 2025, Affirm is the most frequently offered BNPL option in the United States and Canada, indicating a strong preference for this payment method among North American merchants.

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The BNPL industry has made significant strides in expanding its geographic reach and penetration. In Asia, China had approximately 78.5 million BNPL users in 2022, followed by Indonesia with 18.7 million users.

The Asia Pacific region is expected to experience the fastest growth in the BNPL market, with an annual growth rate of 28.4% through 2030. This is a testament to the increasing demand for flexible payment options among consumers.

Here's a breakdown of the number of BNPL users in different regions:

The use of BNPL is also widespread in the United Kingdom, with over 50% of residents in London having used it at some point, and nearly 40% of residents in the East of England having used it.

Afterpay is a dominant force in Australia and New Zealand, with over 50% of New Zealand domains featuring it as a buy now, pay later option by February 2025.

In Australia, Afterpay's market share remains significantly higher than in the US, which had the highest number of merchants offering Afterpay until 2023.

Pay in 4, a service offered by PayPal, has a notable presence in France, with approximately 315 French merchants offering it on their websites by February 2024.

This makes up nearly 8% of all French domains with a buy now, pay later option, a relatively high market share compared to other countries.

The US has the highest number of merchants offering Pay in 4, but its market share is much higher in France.

Sweden holds the largest market share in the BNPL market, consistently leading the way in domestic e-commerce payments.

By 2016, Sweden's BNPL payments were double those of the Netherlands, showcasing the country's early adoption of this payment method.

Sweden's share of domestic BNPL e-commerce payments more than doubled between 2016 and 2020, solidifying its position as a leader in the market.

Germany and Norway followed closely behind Sweden in 2020, with Australia and New Zealand being the only non-European nations among the top 10 countries utilizing BNPL services.

The global Buy Now, Pay Later (BNPL) market is worth $7.63 billion, projected to reach $38.6 billion by 2030, with a compound annual growth rate of 26.1% from 2023 to 2030.

In just four years, the number of BNPL users is expected to grow from 380 million to 670 million, a staggering 107% increase.

The Asia Pacific region is expected to grow the fastest, with a 28.4% annual growth rate through 2030, outpacing other regions.

North America has the highest revenue share in the global BNPL market, accounting for 29.9% of total revenue.

The global BNPL Gross Merchandise Value (GMV) is estimated at $300 billion.

Here are some key statistics on BNPL adoption in different regions:

BNPL website traffic grew 24.3% to 420.8 million visits from 2022 to 2023, while the combined monthly users of top BNPL apps rose 96.5% from 5.7 million in 2021 to 11.2 million in 2022.

In some countries, BNPL adoption is surprisingly high, with 43% of Australian consumers using this service and 45% of online retail businesses offering BNPL as a payment method.

Klarna is the most offered pay-later service on the internet both in the U.S. and globally.

Klarna's U.S. payment volume is expected to reach $21.99 billion in 2024, up 16.8% year-over-year. This is a significant increase, and it's no wonder why many major retailers offer Klarna as a payment option at check-out.

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Over 42.8 million American consumers will use Klarna in 2024, spending an average total of $513.47 per user. This is a testament to the popularity of Klarna among consumers.

Here are some key statistics about Klarna:

Affirm is another major player in the BNPL market, and it's the only major provider with no late fees. This sets it apart from other providers, and it's likely to appeal to consumers who are looking for a more flexible payment option.

In 2024, Affirm's U.S. payment volume is expected to reach $20.16 billion, up 6.50% year-over-year. This is a significant increase, and it's a testament to the popularity of Affirm among consumers.

Over 16.4 million American consumers will use Affirm in 2024, spending an average total of $1,227.34 per user. This is a significant increase compared to other BNPL providers.

Here are some key statistics about Affirm:

BNPL services have a profound economic impact, boosting consumer spending and enhancing retail sales by offering flexible payment options.

This increased purchasing power enables consumers to buy higher-ticket items they might otherwise defer, resulting in higher conversion rates and increased average order values for retailers.

Retailers see significant revenue growth due to BNPL's ability to drive sales, with some benefiting from this trend more than others.

In emerging markets, BNPL facilitates financial inclusion by providing credit access to underbanked populations, thereby stimulating local economies.

However, there are potential risks associated with BNPL, including increased consumer debt.

Increased consumer debt is a primary concern with BNPL, as it can lead to overspending and financial strain.

A staggering 57% of BNPL users in the U.S. regretted their purchases due to spending more than they could afford, according to a study by C+R Research.

The lack of stringent regulatory frameworks in some regions can lead to issues with transparency and consumer protection, making it crucial for regulators to establish clear guidelines for BNPL services.

Increased consumer debt is a primary concern with Buy Now, Pay Later (BNPL) services, as they can lead to overspending and financial strain.

A staggering 57% of BNPL users in the U.S. regretted their purchases due to spending more than they could afford, according to a study by C+R Research.

The lack of stringent regulatory frameworks in some regions can lead to issues with transparency and consumer protection, making it crucial for regulators to establish clear guidelines for BNPL services.

This lack of regulation can make it difficult for consumers to make informed decisions about their purchases, and can even lead to financial hardship for some individuals.

Late fees can be a significant concern for BNPL users. Many BNPL providers have introduced late repayment fees, with Klarna charging them since March 2023.

In the last 12 months, more than half (53%) of BNPL users had been charged fees, with average fees per person adding up to £23.50.

This means an estimated 10.6 million Brits could have paid late fees in the previous 12 months, shelling out an eye-watering total of almost £250 million.

Sezzle is one of the emerging BNPL firms in the U.S., with over 351,000 app downloads.

Sezzle is also one of the top BNPL lenders that originated a significant amount of BNPL loans in 2021, with a total of $24.2 billion in BNPL loans, or GMV, in 2021.

Sezzle is an American company, headquartered in the U.S., which is a key difference from some of the other major BNPL lenders.

Sezzle's app is one of the top three BNPL applications, with over 2.2 million unique downloads, along with Affirm and Klarna.

Here's a brief comparison of the top BNPL lenders: