More Aussies are considering buy now pay later services over family loans
New research conducted by payment solutions group Openpay has revealed many Australians are turning to alternative finance options to broaden their approach to money management.
The data showed that half of respondents have used or have considered using buy now pay later (BNPL) services to independently manage their money, instead of borrowing from family or friends.
In the survey of 1,000 Australians aged 24 to 44, half of respondents noted their parents or older family members as being cautious about BNPL, with 28% of these believing the older generation do see the benefits of BNPL but worry about users spending beyond their means.
Although only a quarter of respondents believed their parents’ generation were advocates of BNPL, the numbers of gen-x and baby boomers adopting such services is on the rise, with a 33% increase from the start of 2020.
Aussies Leading the Way
At Mozo, we’ve already discussed how a third of Aussies now use BNPL services as their go-to payment method, and the research from Openpay furthers the evidence that more Australians are considering substitutes for traditional payment methods. Aussies are already world leaders in the BNPL market, and the number of customers moving towards the payment method is continuing to rise with the RBA’s March 2021 BNPL bulletin noting that Afterpay and Zip alone had almost 6 million active users combined.
Our researchers at Mozo found 65% of BNPL spenders are using the services for big necessities, with 57% opting to use BNPL for their luxury expenses. Our Mozo Experts Choice Awards rounded up the best BNPL services in the market for purchases of any size.
If you’re considering registering for a buy now pay it later service, read our comprehensive guide of the Do’s and the Don’ts for such services. Decided BNPL isn’t for you? Check out our credit card comparison page, or head to our personal loans hub to investigate what other options are available.