Data from Australian credit bureau Experian has revealed enquiries into short-term lending products such as Buy Now, Pay Later (BNPL), credit cards, and personal loans have lifted over the last 12 months.
Enquiry volumes for BNPL services have increased by 28% in the year since February 2022, as cost of living and interest rate pressures continue to hit consumers’ hip pockets.
After a drop in BNPL enquiry volumes in January 2023, February data shows a lift of 55% month on month.
This is the highest observed figure since the seasonally high retail spending pre-Christmas period of November 2021.
“The lending landscape has changed significantly over the last two years driven by the evolving needs of everyday Australians amidst inflation and other forces,” said Tristan Taylor, Experian General Manager of Credit Services.
“Many Australians with mortgages and loans are likely to be feeling the economic pinch so lenders need to adapt.”
Recent research from open banking provider Frollo also highlighted the growing appetite for BNPL and pay advance services.
Across Frollo’s 31,372 users, 32% accessed BNPL services in the first quarter of 2023, an increase of 7% from the same period last year.
The data found users are also spending 9% more totalling $420 per month.
This comes after Australia’s BNPL industry is set to be regulated under credit laws in a move to ensure consumers remain better protected.
Speaking with Savings.com.au, FIS Banking and Payments Specialist Rob Tesoriero said demand for BNPL is here to stay, despite regulation changes.
“From a consumer perspective, while the number of players in Australia has decreased, customer demand has remained steady,” Mr Tesoriero said.
“While our forecast for BNPL growth is slowing, in no markets do we see demand for this form of credit decreasing.”
Geri Cremin from Credit Smart told the Savings Tip Jar podcast that BNPL is just like any other credit product.
However she said different BNPL platforms interact with reporting differently, which is where credit regulation will level the playing field.
"The current situation is really complex, which is why this conversation is happening around how buy now pay later might be regulated moving forward," Ms Cremin said.
"When it comes to an individual using buy now pay later and how it affects their credit health, lenders will also look at how you're managing your repayments. Buy now pay later repayments are another type of credit repayment, and it goes into the full picture of your credit health when applying for a loan."
Credit cards also getting a workout
Turning to credit cards, enquiry volumes increased 31% since February last year and 54% since February 2021 according to Experian data.
Personal loans with Australia’s big-four banks also saw an elevated number of enquiries - 26% in the last 12 months since February 2023.
February this year experienced the second highest number of enquiries for personal loans over the last two years as Australians dealt with eight consecutive months of rate rises.
[Enjoy the benefits of our lowest rate on everyday purchases.
0% p.a. on Balance Transfers for 28 months on a new NAB Low Rate Card. No Balance Transfer fee applies. Plus, enjoy no annual fee for the first year (usually $59)*
Apply by NAB may vary or end this offer at any time.
You’ll also enjoy the benefits of our lowest ongoing rate on everyday purchases.
Up to 55 days interest free on purchases do not apply with an outstanding balance transfer.
Additional cardholder at no extra cost.
Your choice of a pink or silver card.
Apple Pay, Google Pay, Samsung Pay, ]
[0%p.a. on purchases and balance transfers for 18 months reverting to the cash advance rate thereafter.
No balance transfer fee.
Low interest rate.
Low annual card fee.
Up to 55 days interest-free on purchases.
If you currently have a credit card or store card elsewhere, you can easily transfer the outstanding balance to a Low Rate Visa Card and start saving right away.
Samsung Pay, ]
[Get 0% p.a. for 28 months on balance transfers and $0 Annual Account Fee in First Year with an ANZ Low Rate credit card (no Balance Transfer Fee).
$0 Total Annual Fee for the first year - $58 thereafter
Eligibility criteria, T&Cs, fees and charges apply.
Offer ongoing until further notice.
Low ongoing interest rate of 13.74% p.a. on purchases.
Up to 55 days interest free credit on purchases.
$0 annual fee for the first year - $58 thereafter
View balances, transfer money and make payments simply and easily with the ANZ App.
Apple Pay® and Google Pay let you use your compatible Apple® or Android™ device to tap and pay with an eligible ANZ credit card.
Apple Pay, Android Pay, Google Pay, Samsung Pay, ]
[You get up to $350 cashback when you take out a new Low Rate Credit Card. $50 cashback will be awarded for every month $1000 or more is spent on Eligible purchases for the first seven statement periods from card approval.
Eligibility criteria and T&Cs apply. + $59 annual fee.
Up to 55 days interest free on purchases when you pay the closing balance of your statement in full by the statement due date.
Make the most of the balance transfer by creating a balance transfer repayment plan with SmartPlan., ]
[Enjoy 0% p.a. on purchases for the first 3 months + up to $240 cashback
Our lowest interest rate on purchases at 13.24%
Control your security and spending - instantly lock international payments, block ATM cash advances and limit your spending through the CommBank app or on NetBank.
Minimum credit limit $500
Monthly Fee $6/mo (equivalent to $72 per year)
Android Pay, Google Pay
, ]
[Low ongoing interest rate.
Low annual fee.
Microchip for extra security.
Global acceptance of Visa.
Access to Visa Entertainment.
Visit macquarie.com.au/cards for full details and terms and conditions.
Zero liability unauthorised purchases with Visa’s Zero Liability Policy*, ]
All products with a link to a product provider’s website have a commercial marketing relationship between us and these providers. These products may appear prominently and first within the search tables regardless of their attributes and may include products marked as promoted, featured or sponsored. The link to a product provider’s website will allow you to get more information or apply for the product.
By de-selecting “Show online partners only” additional non-commercialised products may be displayed and re-sorted at the top of the table. For more information on how we’ve selected these “Sponsored”, “Featured” and “Promoted” products, the products we compare, how we make money, and other important information about our service, please click here. Rates correct as of November 16, 2024. View disclaimer.
Savings.com.au provides general information and comparison services to help you make informed financial decisions. We do not cover every product or provider in the market. Our service is free to you because we receive compensation from product providers for sponsored placements, advertisements, and referrals. Importantly, these commercial relationships do not influence our editorial integrity.
At Savings.com.au, we are passionate about helping Australians make informed financial decisions. Our dedicated editorial team works tirelessly to provide you with accurate, relevant, and unbiased information. We pride ourselves on maintaining a strict separation between our editorial and commercial teams, ensuring that the content you read is based purely on merit and not influenced by commercial interests.
Learn more about our commitment to editorial integrity in our Editorial Guidelines.
Our service is free for you, thanks to support from our partners through sponsored placements, ads, and referrals. We earn compensation by promoting products, referring you, or when you click on a product link. You might also see ads in emails, sponsored content, or directly on our site.
We strive to cover a broad range of products, providers, and services; however, we do not cover the entire market. Products in our comparison tables are sorted based on various factors, including product features, interest rates, fees, popularity, and commercial arrangements.
Some products will be marked as promoted, featured or sponsored and may appear prominently in the tables regardless of their attributes.
Additionally, certain products may present forms designed to refer you to associated companies (e.g. our mortgage broker partner) who may be able to assist you with products from the brand you selected. We may receive a fee for this referral.
You can customise your search using our sorting and filtering tools to prioritise what matters most to you, although we do not compare all features and some results associated with commercial arrangements may still appear.
For home loans, the base criteria include a $400,000 loan amount over 30 years. For car loans, the base criteria include a $30,000 loan over 5 years. For personal loans, the base criteria include a $20,000 loan over 5 years. These rates are only examples and may not include all fees and charges.
*The Comparison rate is based on a $150,000 loan over 25 years. Warning: this comparison rate is true only for this example and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate.
Monthly repayment figures are estimates that exclude fees. These estimates are based on the advertised rates for the specified term and loan amount. Actual repayments will depend on your circumstances and interest rate changes.
Monthly repayments, once the base criteria are altered by the user, will be based on the selected products’ advertised rates and determined by the loan amount, repayment type, loan term and LVR as input by the user/you.
Savings.com.au is proudly part of the InfoChoice Group, which includes InfoChoice.com.au, YourMortgage.com.au, YourInvestmentPropertyMag.com.au, and PerformanceDrive.com.au. The InfoChoice Group is associated with the Firstmac Group.
We may include products and services from loans.com.au, CarLoans.com.au, OnlineAuto.com.au, and YourMortgageBroker Pty Ltd, all associated with the Firstmac Group. Importantly, these brands are treated like any other commercial partner.
The information provided by Savings.com.au is general in nature and does not take into account your personal objectives, financial situation, or needs. We recommend seeking independent financial advice before making any financial decisions. Before acquiring any financial product, obtain and read the relevant Product Disclosure Statement (PDS), Target Market Determination (TMD), and any other offer documents.
Rates and product information should be confirmed with the relevant credit provider. For more information, read Savings.com.au’s Financial Services and Credit Guide (FSCG).
Brooke Cooper
Jacob Cocciolone
Hanan Dervisevic
