Buy Now, Pay Later Trend Persists Among Young Australians, Reveals Equifax Study
Despite being widely debated, the Buy Now, Pay Later (BNPL) trend continues to be a popular choice among Australians, particularly the younger generation. This is according to a recent study conducted by Equifax, a leading credit bureau.
BNPL Gains Momentum Among Gen Z
Equifax’s research revealed that while 33% of Australians use credit cards, a significant 24% prefer BNPL services. It is interesting to note that the BNPL method is particularly popular among Gen Z—38% of them nominated it as their preferred way of managing costs.
This rise in BNPL usage correlates with an increased demand for unsecured credit products. “In line with the research, we’ve seen the demand for unsecured credit products significantly increase year-on-year, suggesting Australians are relying more and more on credit to cover daily living expenses,” stated Melanie Cochrane, CEO of Equifax ANZ.
Aussie Credit Scores: A Mixed Bag
The research also encompassed the analysis of Australians’ credit scores, an aspect central to Equifax’s business model. The study found that 23% of Australians saw their credit scores decline over the past year. However, on a positive note, credit scores for 52% of Australians actually improved, thereby increasing the average score by three points from the previous year’s average of 861.
Not surprisingly, the youngest demographic—Australians aged 18 to 30—held the lowest average credit score at 715. However, a significant increase is observed in the next age bracket, with a jump to 839 for those aged 31 to 40.
Building Financial Resilience
Commenting on the study, Cochrane noted: “Combined with credit delinquencies remaining stable in the third quarter of this year, these are encouraging signs.” She added that while maintaining good credit health can be challenging due to cost-of-living pressures, building financial resilience is crucial. “Australians are protecting their credit scores – and therefore enabling their access to credit when they need it most.”
About the Study
The Equifax Credit Scorecard is based on the analysis of the credit scores of the Australian banking population. This is coupled with consumer research undertaken across 1010 Australians, conducted by Qualtrics in September 2025.
Through this comprehensive study, Equifax aims to provide valuable insights into the credit behavior of Australians, thereby helping them make informed decisions about their financial health.
For more detailed information about this study, click Here.
