1.5M Aussies Using ‘Buy Now, Pay Later’ Platforms
Latest numbers from Roy Morgan reveals 1.59 million Aussies used ‘buy now, pay later’ digital payment methods in the last 12 months, with Millennials leading adoption. Despite this, the firm asserts there’s a “major opportunity” to lift usage among all generations.
According to Roy Morgan’s ‘Digital Payment Solutions Currency Report’, Milennials accounted for 40.6% of users in the twelve months to January 31, 2019.
Gen Z notched 35.1%, with the two generations constituting over three quarters of local ‘buy now, pay later’ digital platform users (i.e. 1.2 million consumers).
Baby Boomers and Pre-boomers were the least willing to embrace the new payment methods, representing just 5.2% combined.
Roy Morgan asserts the findings present a “major opportunity” for ‘buy now, pay later’ platforms to increase adoptions across all generations.
Research shows only 12.3% of local Millenials and Gen Z (i.e. early adopters) are using the services.
Local awareness of the digital payment systems – such as Afterpay and Zip – have notched a “healthy” 42.9% – significantly ahead of 7.7% usage levels, providing positive growth outlook.
Roy Morgan Communications Director, Norman Morris, claims the platforms pose a significant risk to traditional methods such as credit cards, enhanced by wearable technology adoption:
“The payment environment in Australia is facing rapid change as we see innovative new companies, such as Afterpay, changing the way people purchase goods that they may not be able to afford immediately”
“These ‘buy-now-pay-later’ companies are likely to pose a threat to traditional payment types such as credit cards as well as traditional financial institutions, as consumers can access a small amount of credit instantly with no documentation”
“The increasing use of new payment technologies is being aided by the growing proliferation and development of smart phones and wearables with integrated technology such as Apple Pay and GooglePay, and an increasing number of financial institutions enabling their customers to make payments with these devices.”
Further information is available on Roy Morgan’s website here.