About the study

Money.com.au surveyed 1005 Australians to gauge how many Aussies have previously used a ‘buy now, pay later’ (BNPL) service such as ZipPay or AfterPay when shopping.

The study also sought to uncover how much Australians really know about BNPL services. Respondents were asked to identify which of the statements they believed to be true. Respondents could select more than one of the following statements:

Buy now, pay later (BNPL) is not a form of credit.
BNPL providers are bound by the same consumer protection laws as banks, which means they are required to comply with the same responsible lending obligations.
I will not be charged a fee for late payments if I use a BNPL service.
My bank or credit card supplier will not know if I have a BNPL account.
Missing a payment for a BNPL service affects my credit score.

The pool of survey respondents matches the age and geographical spread of the Australian population. 

Questions

How many Aussies have shopped online using a BNPL service, such as ZipPay or AfterPay?

Money.com.au asked responders whether they have ever shopped online using a ‘buy now pay later’ (BNPL) service, such as ZipPay or AfterPay.

The survey found that majority of respondents (59 per cent) have previously used a BNPL service when shopping online, opposed to 42 per cent which stated they have not used such services.

Have you ever shopped online using a 'buy now pay later' (BNPL) service, such as ZipPay or AfterPay?

There is a notable difference between the age groups when it comes to using BNPL services. The survey found that younger respondents were most likely to use these services when making online purchases. Specifically, 77 per cent of 18-30-year-olds said that they have previously used a BNPL service. This is followed by 69 per cent of 31-40-year-olds and only 39 per cent of respondents over 50.

Have you ever shopped online using a 'buy now pay later' (BNPL) service, such as ZipPay or AfterPay? By age.

Across the States, there is a similar consensus for the use of BNPL services, such as ZipPay or AfterPay, when shopping online. Respondents in NSW and WA are equally most likely to have used these services before, with 61 per cent stating so. This is followed by:

56% of Victorians.
56% of Queenslanders.
55% of South Australians.

Have you ever shopped online using a 'buy now pay later' (BNPL) service, such as ZipPay or AfterPay? By State.

How much do Australians know about BNPL services?

Survey respondents were asked to select which statements they believe to be true on BNPL services. The highest percentage of respondents (62 per cent) believe that missing a payment for a BNPL service affects their credit score. This is followed by:

47% who believe that BNPL providers are bound by the same consumer protection laws as banks, which means they are required to comply with the same responsible lending obligations (i.e. those applying to products like home loans and car loans).
24% who believe BNPL is not a form of credit.
14% who believe their bank or credit card supplier will not know if they have a BNPL account.
9% who believe that they will not be charged a fee for late payments if they use a BNPL service.

Which statements on BNPL services do you believe to be true?

When asked to select the statements on BNPL services that respondents believe to be true, younger respondents are most likely to believe that BNPL is not a form of credit, at 28 per cent. This compares with:

23% of 31-50-year-olds.
23% of over 50s.

Fifty-three (53) per cent of 31-50 years olds believe that BNPL providers are bound by the same consumer protection laws as banks. This compares with:

47% of 18-30-year-olds.
41% of over 50s.

Interestingly, younger respondents who are more likely to use BNPL services are less likely to believe that they will get charged a fee for late payments. Twelve (12) per cent of younger respondents believe they will not be charged a fee for late payments if they use a BNPL service. This compares with:

8% of 18-30-year-olds.
8% of over 50s.

Sixteen (16) per cent of respondents over 50 years of age believe that their bank or credit card supplier will not know if they have a BNPL account. This compares with:

13% of 31-50-year-olds.
12% of 18-30-year-olds.

Respondents over 50 are also most likely to believe that missing a payment for a BNPL service affects their credit score (68 per cent). This is followed by:

59% of 31–50-year-olds.
56% of 18-30-year-olds.

Which statements on BNPL services do you believe to be true? By age.

By State, NSW respondents are most likely to believe that BNPL is not a form credit, at 27 per cent. This compares with:

23% of West Australians.
22% of Victorians.
22% of South Australians.
20% of Queenslanders

The survey found a similar consensus across the States when respondents were asked if they think BNPL providers are bound by the same consumer protection laws as banks. An equal percentage of responders in Victoria, Queensland and West Australia believed this statement to be true (48 per cent). This is followed by:

47% of respondents in South Australia.
46% of respondents in New South Wales.

When asked if survey responders believe they will not be charged a late fee for untimely payments, Victorians were most likely to select this statement as true, at 11 per cent. This compares with:

9% of Queenslanders.
8% of NSW respondents.
8% of West Australians.
7% of South Australians.

Eighteen (18) per cent of West Australians believe that their bank or credit card supplier will not know if they have a BNPL account. This compares with:

16% of Queenslanders.
16% of South Australians.
13% of NSW respondents.
12% of Victorians.

WA and SA respondents were most likely to believe that missing a payment for BNPL service affects their credit score, at 69 per cent. This compares with:

68% of Queenslanders.
61% of Victorians.
55% of NSW respondents.

Response	NSW (%)	VIC (%)	QLD (%)	SA (%)	WA (%)
Buy now, pay later (BNPL) is not a form of credit.	27	22	20	22	23
BNPL providers are bound by the same consumer protection laws as banks, which means they are required to comply with the same responsible lending obligations.	46	48	48	47	48
I will not be charged a fee for late payments if I use a BNPL service.	8	11	9	7	8
My bank or credit card supplier will not know if I have a BNPL account.	13	12	16	16	18
Missing a payment for a BNPL service affects my credit score.	55	61	68	69	69

Do Aussies know the risks affiliated with ‘Buy Now, Pay Later’ services?