Afterpay Turns 10: How Aussie Customer Behaviour Has Changed A Decade After BNPL Offered a Better Way to Pay

Over ten years customers have placed more than 1 billion transactions globally –  with almost 860k a day in 2024 alone

DISTRIBUTED-WORK-MODEL/MELBOURNE – November 8, 2024 – Leading Buy-Now-Pay-Later (BNPL) provider Afterpay this week proudly marks a decade of transforming the financial landscape, empowering millions to manage their spending with flexibility and transparency. Founded in 2014 by neighbours Anthony Eisen and Nick Molnar in Sydney, Afterpay has redefined and set new standards for responsible spending.

During the past ten years, Afterpay has disrupted global traditional credit models and seen consistent growth. With more than 24 million active customers and more than 348 thousand global merchants, Afterpay’s Q3 2024 Gross Payments Volume (GPV) hit $8.24 billion, up 23% year over year (YOY) and Gross Profit was $242 million, up 29% YOY.

Since its launch ten years ago, the Afterpay platform has processed over one billion transactions globally. Meanwhile, Afterpay merchants receive upwards of one million referrals daily, and BNPL customers are more likely to transact more over time. Specifically, Afterpay customers  on the platform for more than five years transact more than 31x per year on average, compared to 4x for those who joined in the past year, signalling the ongoing trust and loyalty placed in the services we provide.  

Afterpay has transformed payment habits, leading a generational shift toward responsible spending behaviours and away from high-interest credit cards. Contrary to the perception that BNPL services are mainly used by 18 to 25 year-olds, the average age of an Afterpay customer ranged between 30 and 40 years old since 2014, reaching 37 in Australia and New Zealand by 2024 — demonstrating Afterpay’s sustained relevance across generations as they evolve in their financial journeys. Today, 90% of repayments to Afterpay are made using debit cards—a 4% increase over the last 10 years—highlighting how customers are managing their finances responsibly via debit.

“Our mission has always been to power an economy in which everyone wins,” said Eisen. “We launched Afterpay to provide an accessible payment solution that empowers customers, rather than leaving them in a cycle of debt. As we celebrate this milestone, we reflect on the significant shifts in spending habits and financial awareness that we’ve witnessed over the past decade.”

A look at the cultural and financial impact in ANZ

In 2014, Afterpay processed 16 thousand transactions in ANZ, which has surged to 144 million in the last 12 months.

A look at what else has changed over the ten years since those initial purchases: 

• For ten years, fashion has been our leading category by transaction volume. However, customers are increasingly broadening their spending across a diverse range of verticals. Categories such as Home Leisure, Toys and Games, Health and Wellbeing, and Automotive have seen significant growth, while Marketplaces, Department Stores, and Food & Beverages have also become key contributors. This diversification reflects how Afterpay customers are expanding their purchasing habits beyond traditional fashion, embracing a wider array of products and services.
• Globally, the peak shopping period has consistently been the lead-up to the holiday season, as more customers shop mindfully for loved ones and holiday celebrations, avoiding a debt hangover in the new year. 
• Afterpay Day, which began in ANZ in 2017 as a single-day event with hundreds of merchants participating, has since evolved into a marquee multi-day retail event held twice a year. By the August 2024 event, participation had skyrocketed, with thousands of merchants — ranging from small businesses to major brands — driving a record 2.4 million transactions during the 4-day sale, as Afterpay customers shopped an average of two or more times.

As the landscape of spending continues to shift, Afterpay remains dedicated to fostering a sustainable financial ecosystem. 

Looking ahead, Molnar shared, “The last ten years has seen incredible growth and innovation in the payments sector and the changes in the attitudes of our customers, which we’re incredibly proud to have played a hand in. The BNPL market is forecast to grow at a Compound Annual Growth Rate of 9.5% to reach $31B AUD in the next five years. There is more to be done, and more opportunity to evolve a system where money is accessible and equitable.  We’re looking forward to working with our customers, our merchants, and our partners, to take it to the next level.”

Afterpay is available in Australia, United States, New Zealand, Canada, and the United Kingdom where it operates as Clearpay.

ENDS

Data sources include Afterpay Internal Data, (September 2024),  Block investor presentation, (Q3, 2024), and Australia Buy Now Pay Later Business and Investment Opportunities, February 2024