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BNPL Afterpay is better known in Australia than payment rivals such as PayPal and BPay

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The 25-year legacy of local payments platform BPAY and US rival PayPal counts for little in the fast-moving fintech space with market leader Afterpay, now better known to a majority of Australians, according to the latest. Roy Morgan Digital payment report.

The report found that 17.5 million Australians aged 14 and over (82.8%) are now aware of buy now pay later services such as Afterpay, Zip, Latitude Pay, Humm and Klarna.

This puts the BNPL industry ahead of other digital payment services, with 75.6% of Australians familiar with PayPal and Western Union, while 71.7% are familiar with established invoice payment services such as BPay and Post Billpay.

While market leader Afterpay is now part of ASX-listed Block following Square’s A$39 billion acquisition deal in December 2021, the brand is now even better known according to Roy Morgan, at 81.1%, up 7.7% points. compared to 12 months ago. As a sign of how quickly Afterpay has entered the public consciousness, that figure was 47.3% less than four years ago in September 2018.

But competitor awareness has grown faster in the past year, with 60.7% of Australians knowing the Zip name, up 7.8% points, while Latitude Pay also saw a 7.8% increase in June 2021 to just under a third (31.7%) the brand.

In the wake of the top 3, smaller fintech rivals such as Openpay (22.1%, up 7.6%), Humm (18.7%, up 5.7%) have been rebranded as Flexigroup, and CBA-backed Swedish Klarna (16.6%).

Awareness Trends for Buy Now Pay Later Payment Services: 2018-2022

Source: Roy Morgan Single Source, 12 Month Moving Average, Avg. sample = 52,731. base: Australians 14+.

Michele Levine, CEO of Roy Morgan, says awareness of BNPL services has continued to grow in the post-lockdown era.

“The buy-now-pay-later sector has seen tremendous growth over the past two years as hundreds of billions of dollars in government incentives, as well as travel restrictions and extended lockdowns across much of Australia, fueled a prolonged retail spending boom that continues. to this day,” she said.

“Public awareness is an important first step, use of the service is the most important metric to monitor. Now more than 4 million Australians (19.1%) used a buy now pay later service in the year to June 2022, an increase of about 700,000 (+3.4%) from a year ago, and an increase of just 6.8% of Australians in September 2018.”

Use of Buy-Now-Pay-Later Services – June 2022

Usage

Buy now pay later

19.1%

15.1%

6.9%

1.6%

1.5%

1.1%

0.7%

Source: Roy Morgan Single Source, 12 Month Moving Average, Avg. sample = 52,731.
base: Australians 14+.

Levine said the most frequent users of BNPL options are usually 25-34 or 35-49 years old, with different age groups clearly preferring different brands.

“Importantly, it is women who are clearly the largest users of buy now pay later services, indicating that men are potentially an underused marketing opportunity,” she said.

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