20+ Buy Now, Pay Later Statistics: A Trend Revolutionizing Finance

Written by Ashley FranklinUpdated: 29th Mar 2022
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We all know that feeling when you see something you want, but the price tag is a little more than you’re willing to spend.

So, what do you do? You put it back on the shelf and hope you can find it cheaper later, or maybe even find a coupon to bring the cost down.

But what if there was another option? What if you could buy the item now and pay for it later?

This is where Buy Now, Pay Later services come in. Afterpay and Klarna allow you to spread your purchase over time without any interest charges. This can be a great way to get the things you want without breaking the bank.

So, if you’re looking for a way to finance your purchases without going into debt, read on for over 20 Buy Now, Pay Later statistics that show how this trend is revolutionizing the way we think about finance.

Buy Now, Pay Later Statistics: A Revolutionary Trend is Taking Place

#1. In the United States, 56% of People Have Used a Pay-Later Service

This number increases as people find that using a pay-later service is a great way to get what they need without worrying about payments.

It can also be helpful when you’re short on cash because you can still get the items you need and then pay for them over time.

#2. There Is an Expected 66.5% Growth Rate for Buy Now, Pay Later Industry

Buy now, Pay Later options are gaining popularity at a rapid pace – and it’s no wonder.

With the ability to make purchases without immediate payment, shoppers can take advantage of sales and promotions that might otherwise be out of reach.

And with more and more retailers offering Buy Now, Pay Later services, it’s becoming easier than ever to take advantage of this convenient way to shop.

#3. A Total of Nearly $100 Billion Was Spent on Buy Now, Pay Later in 2021

A recent Yahoo Money report found that nearly $100 billion was spent on Buy Now, Pay Later options in 2021.

This is an incredible figure, and it just goes to show how popular these options have become in recent years.

There are a few reasons for this, but chief among them is the flexibility and convenience.

#4. Buy Now, Pay Later Is Offered by Over 50 Companies Worldwide

Buy Now, Pay Later is a growing trend across North America. However, it’s also available internationally in Europe, Australia, Asia, Africa, and South America.

There are over 50 companies that offer this service, which goes to show how popular it has become.

#5. Globally, Klarna Partners with Over 250,000 Retailers

Klarna is a global payments company that partners with over 250,000 retailers to provide consumers with a simpler and more seamless shopping experience.

Klarna’s most notable partnerships include H&M, IKEA, Expedia Group, Samsung, ASOS, Peloton, Abercrombie & Fitch, Nike, etc.

With Klarna’s Pay later option, customers can enjoy the convenience of buying now and paying for their purchase over time.

#6. 45% of Buy Now, Pay Later Users Use It At least Once Per Month

According to a recent study, 45% of people who use Buy Now, Pay Later services do so at least once per month.

Most people who have access to this type of financing find it convenient, easy to use, and a helpful way to make purchases.

#7. By 2030, the Global Market for Buy Now, Pay Later Is Forecast to Reach $3.98 Trillion

According to Allied Market Research, the global market for Buy Now, Pay Later services will reach $3.98 trillion by 2030.

This growth is being driven by several factors, including the increasing popularity of these services among consumers and businesses alike.

#8. 62% of Buy Now, Pay Later Consumers Consider It a Viable Alternative to Credit Cards

A recent study found that 62% of people who use “Buy Now, Pay Later” services consider it a viable replacement for credit cards. This is a significant number, likely because credit card interest rates are so high. The average interest rate on a credit card is over 19%.

#9. 77% of American Buy Now, Pay Later Users Are Gen Z or Millennials

It’s no surprise that younger generations are more likely to use Buy Now, Pay Later services – after all, they’ve practically grown up with smartphones and tap-and-go payments.

And with so many struggling with crippling student loan debt, it can be tough to save up enough money to afford something outright.

Interest rates on these services are often well below credit cards, so it’s easy to see why they’re so popular.

#10. Buy Now, Pay Later Purchases Typically Cost About $200

According to recent data, the average purchase cost for a Buy Now, Pay Later purchase is about $200.

This can vary depending on the item purchased and the retailer’s policies, but typically, Buy Now, Pay Later purchases fall in this price range.

#11. Electronics Account for 48% of Buy Now, Pay Later Purchases

It’s no surprise that electronics account for 48% of all “Buy Now, Pay Later” purchases. After all, they’re often some of the most expensive items we buy and can be challenging to afford upfront.

Whether it’s a new television or a state-of-the-art gaming system, spreading the cost of an electronic purchase over time can make it more manageable.

#12. Paypal Credit Is Utilized by 57% of Retailers Who Offer Buy Now, Pay Later

57% of retailers who offer Buy Now, Pay Later services use Paypal Credit. It’s the most popular service, and it’s easy to see why.

Paypal Credit offers several benefits that make it an excellent choice for shoppers and retailers.

#13. 40% of Customers Say That Buy Now, Pay Later Made It Easier for Them to Manage Monthly Expenses

According to a recent study, 40% of customers say that using Buy Now, Pay Later made it easier to stay on top of their monthly budget.

This is likely because it allows them to spread out the cost of a purchase over time, making it more affordable.

#14. Among Small and Medium Businesses, 28.1% Have Introduced New In-store Installment Plans

Installment plans are a great way to increase sales for small and medium businesses.

28.1% of small and medium businesses have introduced new in-store installment plans to boost their bottom line.

#15. 25% of Customers Couldn’t Afford Their Purchase Without Buy Now, Pay Later

It’s no secret that many of us struggle to make ends meet. According to a recent study, 25% of customers say they couldn’t afford their purchase without Buy Now, Pay Later options like Afterpay and Affirm.

#16. 37% of Customers Use Buy Now, Pay Later to Avoid Paying Interest on Credit Cards

Many people use Buy Now, Pay Later services to avoid paying interest on their credit cards.

Credit card interest can add up quickly, and for some people, it can be difficult to pay off their entire balance each month. That’s why people choose to use a Buy Now, Pay Later service instead.

>> More: How Does Buy Now, Pay Later Affect Your Credit?

#17. Buy Now, Pay Later Is Available in 41 Different Countries

Yes, Buy Now, Pay Later is available in 41 different countries. The list of countries includes many countries in Asia, Africa, and Australia.

#18. In the United Kingdom, 10% of Christmas Shoppers Used Buy Now, Pay Later

1 in 10 people in the United Kingdom used Buy Now, Pay Later when shopping for Christmas.

With such a high number of people using this method, it’s no wonder that stores are offering the service more frequently.

#19. Retail Conversion Rates Increase by 20-30% Buy Now, Pay Later Is Offered

Retailers are always looking to increase their conversion rates and drive more sales. That’s why so many of them are now offering Buy Now, Pay Later financing programs.

Studies have shown that retail conversion rates increase by 20-30% when these programs are offered.

This is because they allow people to purchase the items they want now while still paying for them over time.

#20. Buy Now, Pay Later Increases Average Transaction Amounts Between 30% and 50%

It’s true that Buy Now, Pay Later options can increase average transaction amounts by up to 50%.

When people don’t have to worry about upfront costs, they’re more likely to spend more money.

#21. 43% of Buy Now, Pay Later Customers Were Late on Payments Within the Last 2 Years

If you’re one of the 43% of customers who’ve used a “Buy Now, Pay Later” service in the last two years and been late on your payments, you’re not alone. Many people lose track of their installments and end up falling behind.

Statistics show that the Buy Now, Pay Later industry is growing significantly as it makes online shopping more convenient and useful. As a result, more retailers are beginning to offer this option to their customers, and online shopping is benefiting from the trend.

This payment option has become popular with shoppers for a few reasons:

  • It can help them avoid interest charges on big-ticket items
  • It allows them to spread out payments over time
  • It makes it easier for people to purchase items they couldn’t afford

Overall, the Buy Now, Pay Later trend will continue growing as consumers become increasingly comfortable with it.

Is Buy Now, Pay Later a Trend?

Buy Now, Pay Later is not a new trend. It’s been around for quite some time. However, it has become increasingly popular in recent years, thanks to online shopping.

Why Is Buy Now, Pay Later Growing in the United States?

There are a few reasons why Buy Now, Pay Later services have been growing in popularity in the United States lately.

Firstly, the economic downturn that began in 2020 due to the pandemic has meant that many people struggle to make ends meet.

Secondly, with debt levels rising, Buy Now, Pay Later options to provide a way to allow people to purchase items without having to come up with the total amount of money right away.

Finally, as e-commerce grows in popularity, more and more retailers are offering these payment options to encourage customers to shop with them.

How Many People Use Buy Now, Pay Later in the United States?

Over 45 million people in the United States use Buy Now, Pay Later services. This number is expected to grow as the trend continues to gain popularity.

How Many People Use Buy Now, Pay Later in the United Kingdom?

Over 17 million people in the United Kingdom use Buy Now, Pay Later services like Klarna and Afterpay. While not as popular as in the United States, the trend is still growing rapidly.

Is Buy Now, Pay Later Used by Younger or Older People?

When it comes to Buy Now, Pay Later services, younger people use them more than older people. This is likely because younger people are more comfortable with using these types of services, and the fact that they often have less money available upfront.

On the other hand, older people may be more likely to use traditional payment methods, such as credit cards or loans. However, as the trend grows, more older people will likely start using Buy Now, Pay Later services.

Other Statistics Worth Checking Out:

Bottom Line: Buy Now, Pay Later Statistics

The Buy Now, Pay Later trend is revolutionizing the way we think about finances, and it’s no wonder that more and more people are using Buy Now, Pay Later services.

With no interest charges and various payment options, these services make it easy to get the things you want without breaking the bank.

And as the trend continues to grow, we can expect to see even more people using Buy Now, Pay Later services in the future.

Sources:

Ashley Franklin
Ashley Franklin

Ashley Franklin is a professional writer and financial literacy expert. Ashley double-majored in Computer Science and Communications, and she brings her talents to the forefront with writing about personal finance and investing. Having worked with renowned international websites and publications, Ashley has found that there’s no one-size-fits-all solution to financial management. That’s why her articles are all about finding what works for you.