Recent Release | 11 Oct 2022

The Economic Impact of Buy Now Pay Later in Australia

Economic Consulting Team

Oxford Economics


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:

Andrew Tessler
Andrew Tessler

Head of Economic Impact Consulting, Australasia, OE Australia

Raúl Arias

Senior Economist, OE Australia

You might be interested in

Housing supply front and centre for policy makers

The passing of the previously delayed Housing Australia Future Fund (HAFF) means that all the Albanese government's announced housing policies are now in place. These policies represent a minimum funding pool of $5.5 billion stretching to the end of the decade, potentially lifting as high as $10 billion if all targets are met and excess fund returns achieved.

Find Out More
The Australian hybrid work model looks here to stay with lasting impacts on office space demand

The shift to flexible ways of working and using office space was already underway prior to the pandemic with the advent of open plan offices, activity-based working, hot desking and co-working space.

Find Out More
Australian office and industrial property asset classes are upgrading

The major CBD Australian office markets are oversupplied, with double-digit vacancy rates that should be suppressing rental growth. However, historically high incentives are boosting the financial appeal for tenants to move into better quality space when their leases expire, even as stated rents rise in many locations.

Find Out More
Morocco: The economic impact of the Al-Haouz earthquake

The human cost of the earthquake that struck Morocco on September 8 has been terrible, but lower than it could have been. The same is true of the economic cost. We have taken a closer look at the economies of the affected regions, and at government's emergency response plan, to evaluate the economic impact.

Find Out More