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The New Retail Trend That Will Take BNPL to $760 Billion in Sales


In today’s market, would any retailer accept just one brand of credit card? It doesn’t take a rocket scientist to realize you’d lose a ton of sales if you did, both online and in store.  

Back in the 1970s when credit cards were just gaining a foothold, it was common for retailers to only accept one card not knowing where this new financial tool would take them. Today we’re seeing a similar story unfold with buy now, pay later (BNPL), except this story is unfolding at a rapid rate. WithBNPL adoption accelerating over the past year, many retailers are discovering the huge revenue potential of “multi-apping” – aka accepting multiple BNPL payment options.

At Zip, we dug deep into markets around the world to reveal why retailers multi-app, what countries lead the way, how consumers are driving this trend, and what Canadian retailers can expect in the future. The payment space is taking off with the biggest revolution since the credit card. Our latest multi-app BNPL report explains how choice at the checkout will help retailers avoid falling behind. Here are the key takeaways:

BNPL drives billions in sales growth annually  

In 2018, BNPL was already responsible for $292 billion USD in global sales. By 2025, that’s projected to more than double to $760 billion. In markets where BNPL is much more mature, like the United States, United Kingdom, and in particular Australia, multi-apping adoption is already extremely high.

Percentage of BNPL users who multi-app in three key markets:

●     61% Australia

●     55% United States

●     55% United Kingdom


Do retailers knowc onsumers are multi-apping?

In Australia, they absolutely do, with 63% of retailers down under accepting multiple BNPL providers. The Aussies lead the way because consumers there don’t like, or trust credit cards – a trend we’re also seeing in Canada with credit card balances dropping the most last year since 1999.

In the US, 7 out of 10 BNPL users are considering opening another account and our data strongly suggests that in the next 12 to 18 months, US retailers will follow trends seen in other countries. With customer demand and increased sales being the top two reasons retailers offer multiple BNPL providers, this growth trajectory simply makes sense.  

Why do BNPL users multi-app? For the same reason we have multiple credit cards

Just as consumers have several credit cards to take advantage of competing rates, cash back and loyalty points, they’re doing exactly the same with BNPL. Some reasons shoppers are using multiple BNPLs include:  

●     36% find large/small purchases suit different brands

●     35% seek better repayment terms

●     25% take advantage of sign-up incentive

But the #1 driver for 52% of shoppers is that retailers don’t accept their preferred BNPL provider – something retailers can quickly take advantage of. And when nearly half of Zip users around the world spend and shop more, the case for multi-apping can’t be ignored.

Come see what we revealed about BNPL in Canada

Canadian BNPL growth could reach 14 million users by 2025. Canucks are also cash smart, with 51% saying they reduced or completely stopped using credit cards due to BNPL. 53% of our global Zipsters said they’ll actively avoid stores or abandon their carts when they don’t see their favourite BNPL options. So it’s only a matter of time before Canadian retailers who don’t offer the choice feel the sting. You’ll also learn what Canadians revealed about how BNPL influences their spending decisions and buying power.

Retailers share their top reasons for multi-apping and why Zip powers the highest AOV

Over half the retailers we spoke to said they offer multiple BNPL options because customers demand it. So Canadian brands need to realize it’s consumers – not the providers – that are driving this trend. We’ll also show you the revenue impact of not offering BNPL to offering multiple options, and how Zip powers the highest average order value (AOV) of any payment option. 

BNPL and multi-app isn’t the future, it’s right now. Our research shows the rest of the world is already moving fast to satisfy the growing demand and this is the opportunity for Canadian retailers to get ahead of the trend. It’s understandable, however, why Canada lags behind other countries inthis space. Between credit and debit, payment technology hasn’t really changed in the last 40 years. Many retailers are simply sticking to the adage, “if it ain’t broke don’t fix it.” But if history has taught us anything, failure to heed the tide of incoming innovation and technology is what put Blockbuster and the CD into the history books.


Explore all our global multi-app report here.

The fearless global leader in Buy Now, Pay Later (BNPL).

Zip (ASX: Z1P) is a global leader in BNPL, payments, and consumer financing solutions.  Zip operates in 14 international markets, putting 9.9 million Zipsters and 81,000+ merchants at the heart of everything we do - offering innovative, responsible, fair payment products that create a financially fearless world.