Lady with tablet
Emerging trends: Buy Now Pay Later

In the last year Buy Now Pay Later (BNPL) deferred payment schemes have experienced a staggering rise and are set to keep growing. The main brands available in New Zealand are Afterpay, PartPay, Laybuy and Oxipay.


BNPL schemes work by allowing the customer to spread payments of their item over typically weekly or fortnightly payments with no interest. It is a very appealing proposition, particularly for millennials as it fits in with their generation’s ethos of wanting everything now.

Over 228,000 Kiwis have already signed up to BNPL schemes and women, in particular, are loving it with 70% of BNPL purchases made by female customers in 2018.

These pay-later solutions are having a growing impact in social media. Instagram, for example, exposes consumers to appealing products accompanied by easy ways to own them. The desire to spend, and the removal of spending barriers, makes purchase very tempting – particularly in the Clothing & Footwear and Health & Beauty sectors, both in store and online.

Girl on bed
It is estimated that
of all clothing & footwear spend in New Zealand was with BNPL in 2018
Of all BNPL spend happened in Q4
Of online shoppers have used BNPL
Of users were female
Of BNPL spend came from the under 45 age group
Was from women under 45

In a fast-paced and technology-led environment, retailers need new ways to attract and keep customers and that’s the main reason why over 1,200 Kiwi businesses including some of the largest retail brands like Hallenstein Glassons, Stirling Sports and Trade Me have already signed up to Afterpay alone. The appeal for retailers is clear. Firstly, the system is relatively easy to implement online or instore. Retailers get paid upfront and don’t need to worry if the customer can pay or not. It removes a big barrier to purchase and increases the chances of browsers becoming buyers. Overseas experiences show these are shoppers who buy more, spend more per transaction and also come back more often.

The continued growth of BNPL is a trend that retailers just can’t ignore.

Note: To capture the significance of BNPL, we have counted the BNPL transactions as one transaction in order to not distort the number of purchases.

Shoe in box


Continue to:   Emerging trends: Marketplaces


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