The expansion of Buy Now Pay Later (BNPL) services in Australia is experiencing a slowdown, with the Reserve Bank reporting a decrease in the annual growth of spending through these platforms. Growth slowed to $1.5bn in 2025, a reduction from the $3bn yearly growth observed in the late 2010s.
The sector has seen a number of departures, with at least eight BNPL platforms leaving Australia since 2022. This includes the National Australia Bank withdrawing its product earlier this year. Four major operators remain: PayPal, Klarna, Zip, and Afterpay.
Data from credit agency Equifax indicates a 35% year-on-year decline in new BNPL account applications for the three months leading up to June 2026. Experts suggest that 2025 laws, which defined BNPL as a form of credit and mandated credit checks, have contributed to this slowdown. These reforms aimed to prevent companies from approving customers for funds they could not afford to repay.
Despite the overall slowdown, some companies are seeking new strategies. Afterpay, which has never turned a profit in Australia, recently spent millions to acquire naming rights for a Sydney Olympic Park arena. The company states that Afterpay Arena will allow Australians to use BNPL for event tickets, merchandise, dinner, and alcohol.