Buy Now Pay Later Injects $18.4 Billion into the Australian Economy in FY22


8 February 2023

The Australian Finance Industry Association (AFIA) today released an updated research report by BIS Oxford Economics and RFI Global, on the ‘Economic Impact of Buy Now Pay Later’. It finds the economy, employment, consumers and retailers (particularly small business), are reaping the benefits of innovative Australian BNPL technology.

While BNPL is still an emerging sector, making up only 0.66% of all payment transactions in Australian, more than 6.3 million Australians are choosing to use BNPL, contributing $18.4 billion to Australia’s Gross Domestic Product (GDP) in FY22 and supporting 120,200 Australian jobs.

The report shows the payments sector continues to undergo rapid evolution, with a shift in consumer preferences away from traditional credit options and towards alternative payments products that offer convenience, interest-free finance, and better cashflow management opportunities.

Accelerated by the COVID-19 global pandemic, there is increasing consumer appetite and expectation for tech-enabled products and services and continued growth in Australia’s digital economy.

AFIA CEO Diane Tate said millions of Australians were choosing to use BNPL because it helped them budget, they don’t get charged interest and it is easy to use digital technology.

“Australian consumers have gained an estimated $337 million in benefits from using BNPL in FY22,” said Ms Tate.

“BNPL is low cost and low risk, the average BNPL transaction value is $136. Consumers are able to save in interest and fee costs (relative to other financial products) and surcharge savings. Delaying payment allows for more effective budgeting.”

Ms Tate said Australians wanted fast, frictionless payment channels instead of clunky processes, queues, and paper documents.

“The finance sector is constantly evolving, looking for ways to deliver the best products and services while providing strong support for vulnerable Australians.”

Small Australian retailers reap the biggest benefits from using BNPL, with the retail sector seeing $804 million in cost efficiencies in FY22, an increase of 28.4 per cent on FY21. BNPL was accepted by more than 158,900 Australian businesses, an increase of 17.4% compared with the previous financial year.

“BNPL delivered $2.7 billion in new revenue for retailers in FY22, through new customer acquisition, increased basket sizes, increased customer satisfaction and retention and lower fraud rates and marketing costs. This means real jobs for those working in retail and more customers having their needs met” Ms Tate said.

“The changing landscape for financial services is not simply a function of the age of smartphones – it is because Australians want simple and integrated ways of managing our money.”

Ms Tate said for Australia to achieve an innovative, competitive, and technologically advanced financial ecosystem, inclusive of all, with better consumer outcomes and protection for vulnerable consumers, regulation must be proportionate to benefits and costs.

“We need to support a sector that encourages different business models, meets diverse customer expectations and addresses market inefficiencies,” she said.

“AFIA sees opportunities for the Code to be improved by leveraging advancements in technology and data seen over recent years, which enables providers to quickly adapt to changing customer expectations and behaviour.

“AFIA looks forward to working with the government to strengthen Australia’s world class financial ecosystem.”


AFIA is the only peak body representing the entire finance industry in Australia.

We represent over 150 members, including bank and non-bank lenders, neobanks, finance companies, fintechs, providers of vehicle and equipment finance, car rental and fleet providers, and service providers in the finance industry. We are the voice for advancing a world-class finance industry and our members are at the forefront of innovation in consumer and business finance in Australia. Our members finance Australia’s future.

We collaborate with our members, governments, regulators and customer representatives to promote competition and innovation, deliver better customer outcomes and create a resilient, inclusive and sustainable future. We provide new policy, data and insights to support our advocacy in building a more prosperous Australia.

See the PDF version of this media release here.

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