16 / Apr
Buy Now, Pay Later Trending in New Zealand
In New Zealand, the rise of buy now, pay later (BNPL) services is changing the shopping experience and how consumers manage their finances. [1] With the convenience of flexible repayment plans available for everything from daily necessities to luxury items, shoppers are attracted to the ‘interest free’ shopping option. However, as these services gain popularity, concerns have emerged regarding their impact on spending habits and financial well-being.
The buy now, pay later market is rapidly growing and payments are expected to increase by 11% annually. The market is projected to reach USD 2.4 billion by 2029. [2] As more consumers turn to buy now, pay later options, retailers and financial providers are adopting these services, expanding the retail market in New Zealand.
The recently released New Zealand consumer research on payments for 2024 explores the payment preferences of specific demographics. Compared to 2022, there was an overall increase of 16% in the use of BNPL services for large purchases in 2024. [3] BNPL has become especially popular among younger generations, who tend to prefer it over credit card transactions, unlike older demographics. Although, EFTPOS transactions, and credit card transactions are still the most preferred payment methods within New Zealand.
BNPL is particularly appealing for those who prefer to avoid upfront payments and split them into installments. The use for large purchases has grown faster with GenZ shoppers than other demographics. BNPL not only encourages customers to make larger purchases but also helps retailers draw in more shoppers and boost their sales conversion rates by providing a payment alternative at checkout. Over 88,000 merchants had implemented the option in 2024. [4]
The rise in BNPL adoption is related to convenience, but also to cost of living pressures. According to Stats NZ, the average New Zealand household experienced a 3.8% increase in living expenses in 2024 and salaries have not kept pace. [5] With prices climbing for essentials like food, fuel and housing, consumers are finding it more challenging to afford additional purchases such as clothing and electronics.
BNPL options provide convenience but also present significant risks for some New Zealanders. Financial mentoring organisations warn that these plans can lead to financial hardship. [6] Missed payments can result in high late fees, and even timely payments may make it hard for consumers to afford necessities due to automatic deductions. This payment method can, unfortunately, push vulnerable customers into a cycle of unmanageable debt.
Marketers and brands must recognise the future potential of buy now, pay later in New Zealand. As consumer preferences shift toward flexible payment options, adopting buy now, pay later will enable businesses to attract a larger audience and drive sales growth. Failing to adapt to this trend could result in missed opportunities, especially for those who offer luxury/higher priced products.
Make sure to check out the rest of our Top Trends in New Zealand for 2025.
[1] Buy Now Pay Later market size, share, growth, and Industry Analysis By Type, Business Research Insights, January 2025
https://www.businessresearchinsights.com/market-reports/buy-now-pay-later-market-109225
[2] New Zealand Buy Now Pay Later Business and Investment Opportunities Databook, Research and Markets, August 2024
[3] Consumer Research 2024, Payments NZ, 2024
https://www.paymentsnz.co.nz/resources/research-reports/
[4] Buy Now Pay Later market size, share, growth, and Industry Analysis By Type, Business Research Insights, January 2025
https://www.businessresearchinsights.com/market-reports/buy-now-pay-later-market-109225
[5] Household living costs increase 3.8 percent, StatsNZ, November 2024
https://www.stats.govt.nz/news/household-living-costs-increase-3-8-percent/
[6] Buy Now Pay Later, Ministry of Business Innovation and Employment, September 2024
https://www.mbie.govt.nz/business-and-employment/consumer-protection/buy-now-pay-later
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