18 Buy Now, Pay Later (BNPL) Statistics for Businesses in 2022

Buy Now, Pay Later, or BNPL as it is commonly known, is one of the most prominent trends in the retail market. Where BNPL used to be popular only for large purchases like furniture and cars, consumers are now using it on all kinds of everyday purchases—thanks to services like Klarna, PayPal, and Afterpay.

In this article, we will look at 18 stats and news events surrounding BNPL services in 2022—how consumers are using them, what they are buying, and how the retail industry is adapting.

Consumer Trends

To best understand and react to the BNPL landscape, you first need to understand consumer behavior. In this section, we will look at how shoppers are using BNPL and how you can capitalize on their use.

1. In 2021, 55.8% of consumers used BNPL services

BNPL is a fast-growing payment option. With over half of the population using BNPL services, 2021 represented a significant increase over 2020 when only 37.7% had utilized BNPL services.

2. BNPL’s user base grew 85% in 15 months in 2020 and 2021

We can see another example of BNPL’s rapid growth from a PYMNTS study. It found that in a 15-month period between 2020 and 2021, the user base for BNPL services increased by 85%.

3. Almost 75% of BNPL users are Gen-Z and millennials

Boomers and later generations are more prone to using traditional buying methods, showing some hesitation about BNPL services. This, paired with millennial and Gen-Z enthusiasm surrounding BNPL, has skewed usage toward mainly younger people. In fact, eMarketer found that 75% of BNPL users are from those younger generations.

4. BNPL users think the service could replace their credit cards

A study from The Ascent found that 62% of BNPL users think that BNPL services could replace traditional credit cards in the coming years. This is mainly due to the growing ubiquity of the services and their ease of use. It is important to note, however, that while 62% of users foresee this shift from credit cards, only 50% want to see the change.

5. The most common reason to use BNPL services is to make purchases that don’t fit one’s budget

Forty-five percent of BNPL users say that they use BNPL services to make purchases that won’t otherwise be feasible. BNPL users also use financing services to:

Avoid credit card interest (36%)
Borrow without a credit check (24%)
Guard personal data (20%)
Avoid using credit card (19%)

6. Some 60% of BNPL users say they have used the service to buy something unnecessary

While many people use BNPL services to purchase expensive, necessary items, BNPL usage can also be frivolous. In fact, 59% of BNPL users have admitted to using the service to purchase an unnecessary item outside their budget.

7. Buying electronics is the most common use of BNPL

Forty-eight percent of BNPL users have used the financing service to purchase electronics, making electronics the most commonly purchased item using BNPL services.

Showing customers checking electronics in store.

Electronics are the most commonly purchased items using BNPL services. (Source: Digital Trends)

8. About a third of shoppers use BNPL at least once a month

Along with overall use, the frequency with which consumers are using BNPL services is also increasing. In fact, the Ascent study found that 36% of customers use BNPL services once a month or more, with nearly 9% using them more than once a week.

Showing how often did customers use BNPL services in 2021.

9. The average amount that customers spent on their last BNPL purchase was $689

A study from C+R Research found the average value of BNPL users’ most recent purchase to be $689; their average outstanding amount owed is $883.

10. Nearly half of BNPL users anticipate making a late payment in the next 12 months

While the risks associated with late payments typically fall on customers in the form of fees and bad credit, it is important to note that 46% of BNPL users anticipate making a late payment for the purchases. Late payments lead to fees and damaged credit which can, in turn, cause customers to become angry and distrustful and can even diminish their loyalty to your brand.

Want to start a loyalty program? Check out our breakdown of the top customer loyalty programs on the market.

11. Some 31% of BNPL users have made a late payment

Another interesting BNPL finding is that almost a third of BNPL users have made a late payment since opening a payment plan.

Industry Trends

In addition to how customers are using BNPL services, it is important to know how the retail industry is utilizing them and the larger industry trends and forecasts. Here, we will take a look at just that, so you can understand the BNPL landscape from an industry perspective.

12. Fashion and apparel shopping sites are the fastest-growing shopping category for BNPL platforms

In fact, SimilarWeb reported a 24% increase in fashion and apparel’s BNPL traffic share. This is part of a larger trend in SimilarWeb’s report of BNPL being applied to smaller and more frivolous purchases. As you see in the picture below, more and more apparel businesses are incorporating BNPL options into their product pages.

Apparel is the fastest-growing retail segment for BNPL traffic share. (Source: Revolve)

13. PayPal is the most common BNPL service provider

There are many popular BNPL services, such as Affirm, Afterpay, and Klarna. The one you will find on retailers’ sites most often, however, is PayPal. In fact, it is used by 57% of retailers over the competition.

14. More than a quarter of small and midsize businesses have adopted BNPL services

While large companies certainly took the lead with BNPL services in the beginning, smaller businesses aren’t too far behind. As of 2021, 28.1% of small and midsized businesses are offering BNPL services to their customers.

Want to add BNPL services to your business? Check out our guide on how to offer customer financing.

15. Amazon partners with Affirm

In giant news for BNPL, Amazon recently partnered with Affirm and will roll out customer financing options for purchases of $50 or more—and Affirm will offer 0% APR on many purchases. Expect to see Affirm payment options fully integrated into Amazon’s product pages and user accounts in the coming months.

Showing Amazon and Affirm's partnership in 2021.

Amazon and Affirm announced their partnership in 2021 and will begin rolling out financing services in the coming months. (Source: Affirm)

16. Square (a Block product) announces plans to acquire Afterpay

Another major acquisition in the world of BNPL is set to happen early in 2022 when Block officially acquires Afterpay. This means that Afterpay’s financing services will be fully integrated into Square POS systems and websites, allowing Square users to offer Afterpay financing both in store and online.

The deal is expected to finalize at the end of January. Current Square users will get Afterpay services added to their accounts automatically, and all future Square users will have access to Afterpay services with all Square POS plans. Learn more about Square.

17. Ecommerce retailers that offer BNPL services see an average of 2.1% higher conversion rates

As BNPL services are becoming more popular and consumers more inclined to use them, financing options have become a selling point for many. In fact, SimilarWeb found that retailers offering BNPL options see a 2.1% higher conversion rate than those that don’t.

18. The amount of BNPL lending in the US was estimated to reach $55 billion in 2021

As BNPL services become increasingly popular, their lending value is naturally rising. As we can see in the graph below, the US’s BNPL lending value was at $3 billion in 2019. In just two short years, this number was set to hit nearly 19 times that value in 2021, with a projection of $55 billion in BNPL lending value. It doesn’t stop there, however. By 2024, forecasters suggest that BNPL lending value will likely hit $114 billion.

Bottom Line

As we have seen throughout this article, the uptick of BNPL services is one of the biggest trends in the retail market for 2022. To stay competitive, examine the data above and consider incorporating a BNPL service into your business. Learn more about offering BNPL and customer financing to your shoppers.