Oxford Economics was commissioned to measure the economic impact of Buy Now, Pay Later (BNPL) in Australia by the Australian Finance Industry Association.
Relying on economic contribution and welfare economics approaches, we find that for Financial Year (FY) 2021, the BNPL industry helped create or retain some 99,200 jobs throughout Australia and contributed $14.3 billion in Gross Domestic Product (GDP) to the Australian economy.
Furthermore, we measure the combined consumer and merchant surplus benefits, or ‘net social surplus’, revealing merchants and consumers have continued to adopt BNPL because it provides advantages to other payment alternatives such as interest and fee savings, and growth in revenue and associated profits for merchants.
About the team
Our Economic Consulting team are world leaders in quantitative economic analysis, working with clients around the globe and across sectors to build models, forecast markets and evaluate interventions using state-of-the art techniques. Lead consultants on this project included:
Head of Economic Impact Consulting, Australasia, OE Australia
Senior Economist, OE Australia
You might be interested in
Economic impacts of Pitch Perfect: Bumper in Berlin in Germany
This study, commissioned by the Motion Picture Association (MPA), focuses on the show “Pitch Perfect: Bumper in Berlin”, and analyses the production’s total economic impacts in Germany in 2022, when the series was filmed. The study also considers the wider impact on Germany’s economy.Find Out More
Why understanding and investing in your social footprint is good for business
In the last few years issues such as the cost of living crisis, and the Covid-19 pandemic have pushed the nature of the relationship between companies and their employees, communities, and wider political context to the top of boardrooms’ agenda.Find Out More
Exploring the implications of higher pension contributions in the UK
Oxford Economics have collaborated with and Royal London to explore the implications of increasing mandated minimum pension contributions in the UK.Find Out More
Diageo’s Economic Impact in Europe
Diageo commissioned Oxford Economics to produce an assessment of its economic impact across Europe in 2022. This illustrated the company's large economic footprint, which supported a a significant number of jobs throughout its value chain.Find Out More