SYDNEY – 29 June 2022: Zip welcomes Australian Finance Industry Association (AFIA) research showing Buy Now Pay Later (BNPL) is a vital part of the Australian financial ecosystem and contributed over $14 billion to Australian GDP in FY2021, despite representing less than half a percent of payment transactions across our economy.
Other research findings during FY2021 include:
- 99,200 jobs created due to BNPL;
- $102 million in interest saved by consumers by using BNPL instead of credit cards;
- $2.13 billion increase in gross revenue overall for merchants, or a 5.5% average increase in revenue;
- 60% of retailers said revenue would fall if they stopped accepting BNPL; and
- 54% of customers said BNPL helps manage their cash flow and 54% said they use BNPL to avoid interest charges.
The report also reveals that only 0.34% of customers are experiencing financial hardship, and only 0.01% of customers needing AFCA to help resolve their complaint with their BNPL provider.
Zip co-founder and global Chief Operating Officer Peter Gray said: “This report highlights what we have long known: BNPL is a key contributor to the Australian economy and the benefits it delivers to consumers and merchants cannot be ignored. BNPL is creating jobs, providing consumers with better options, saving them money, and helping to support and grow Aussie retailers.
We know BNPL is a better and fairer alternative to credit cards and this research validates that and shows BNPL is a significant and legitimate part of the financial ecosystem – the model stacks up and this is why every major bank is scrambling to offer BNPL to their customers.”