PayPal Still King Despite BNPL Boom
PayPal is still the number one online shopping payment method in Australia, despite the Buy Now, Pay Later industry raking in a lot of the market share during 2020.
According to data from BigCommerce, PayPal has already accounted for 41 per cent of all transactions in 2021 – up from 40 per cent during the whole of 2020.
Meanwhile, credit cards have accounted for 28 per cent of transactions, debit card use is at 19 per cent and BNPL products such as Afterpay and Zip have accounted for 13 per cent of online spending so far in 2021, down from 14 per cent.
The survey found that while online shopping doubled during the worst of the pandemic in Australia, the way consumers paid for their online purchases remained largely the same.
This is despite the fact the average online site offers users 6.8 options for payments, including at least one BNPL product.
PayPal is by far the preferred payment method for online shoppers, accounting for 55 per cent of all digital transactions made by consumers aged over 65.
However BNPL is more popular with younger shoppers aged between 25 and 34, accounting for 17 per cent of online spending and just 35 per cent for PayPal.
PayPal is now also cashing in on the BNPL boom after announcing it was entering the market with its own ‘pay in four’ instalment product this June.
Users will have the option to pay in four instalments next to the PayPal button on websites.