Young People and BNPL - An NCOSS 'Cost of Living in NSW' Report
The growth in Buy Now Pay Later (BNPL) products has created another financing option for consumers, but raises several issues for these same consumers and the policymakers grappling with how to respond to the new payment technologies.
There is at least a generation of young people that have grown up with and embraced technologies that are disrupting concepts such as banks, loans and purchases. We need to understand these new technologies; both the benefits and the risks.
Commissioned by NCOSS, in partnership with Youth Action, the research reveals how and why young people across NSW are using these increasingly popular new payment platforms.
The research presents findings from a survey of 297 young people (aged 18-24) in NSW, including Aboriginal and Torres Strait Islanders, people with a disability and those with caring responsibilities.
Some key findings include:
- With just under half of the young people (49%) surveyed reported using BNPL, the majority of BNPL users were positive about their experience with the new payment platforms.
- Of those that reported using BNPL, 20% did not know, or couldn’t say, how much they owed on BNPL. These BNPL users tended to be younger and less likely to be working than other BNPL users.
- BNPL platforms are also more likely to be used by younger people in low and medium socioeconomic areas.
- The amounts owed by those young people that reported owing payments ranged between $24 and $2,900, with half owing between $100 and $1,200.
- Most young people used more than one method to repay BNPL. By far, the most used repayment method was a debit card (93% of users), followed by PayPal (35%) and credit cards (22%). Young men were more likely to use their credit cards (29%) compared to young women (19%).
- Young people in regional areas were more likely to use BNPL compared to those living in Sydney.
- Young people with disability were more likely to use BNPL, had a higher median amount owing and were more likely to use a credit card to make repayments, compared to other young people.
Download the full Report and Media Release Here: