Afterpay at the Checkout? The Next Frontier for BNPL in Australian Supermarkets

Buy Now, Pay Later (BNPL) services have transformed the way Australians shop, with Afterpay leading the charge in this revolutionary payment model. As BNPL becomes more entrenched in the Australian retail landscape, supermarkets are next in line to embrace this payment method.

With the introduction of new legislation in June 2024, the future of BNPL services like Afterpay in Australian supermarkets is poised to change. Let’s explore how Afterpay and BNPL are shaping the checkout experience in Australian supermarkets and what it means for the retail market.

The Rise of BNPL in Australia

BNPL services have become a mainstream payment option for millions of Australian shoppers. As of 2024, BNPL is the third most popular credit product in Australia, following credit cards and home loans. With services like Afterpay, Zip, and Humm, consumers have an easy way to purchase items and pay in installments, often without interest, if paid on time.

In 2024, Afterpay processed an impressive $50 billion in sales across Australia and the United States, more than double the $21 billion processed in 2021. With over 24 million customers globally, Afterpay is available at 348,000 merchants, including major retailers and online stores. Notably, the average Afterpay customer is 39 years old and enjoys a solid credit score, reflecting a growing trend among responsible users of BNPL services.

New Legislation for BNPL Providers

As of June 10, 2025, new regulations introduced by the Albanese government will take effect. These regulations will require BNPL providers like Afterpay, Zip, and Humm to request income and expense information from new customers to assess their loan suitability. This legislation aims to bring legitimacy and structure to the BNPL market, ensuring that consumers are using BNPL responsibly and that providers are lending sustainably.

This shift will help BNPL services compete more directly with credit cards, giving customers an alternative that could become just as widely used. While this new regulation could potentially change the way Australians use BNPL services, it also strengthens BNPL’s credibility in the retail ecosystem.

After Pay’s Role in the BNPL Revolution

Founded a decade ago, Afterpay has grown from a small startup to one of the most powerful players in the BNPL sector. In 2021, Afterpay was acquired by Block for $39 billion, which signified the scale the company has reached, both in terms of market influence and financial backing. The company’s growth has been substantial, and its reach continues to expand globally.

In 2024, Afterpay’s gross profit was $237 million, a 14% year-on-year increase. This proves that BNPL is not just a fad but a long-term shift in consumer behavior. The company’s ability to balance customer acquisition with responsible lending practices makes it a key player in this evolving market.

After Pay’s Impact on Supermarkets

BNPL is making its way into supermarkets, and the impact on Australian retail is likely to be profound. Consumers are increasingly looking for flexibility in their payment options, especially in times of economic uncertainty. Afterpay at the checkout in supermarkets provides just that—allowing shoppers to split their purchases into manageable instalments without incurring high interest rates.

This offers supermarkets a new revenue stream while enhancing the shopping experience for customers who might otherwise hesitate to make larger purchases. Afterpay’s integration at supermarket checkouts allows customers to pay for their groceries, household essentials, and even speciality items with the convenience of instalment payments.

The Future of BNPL in Australian Supermarkets

Afterpay, Zip, and similar services are increasingly becoming a part of the checkout process. Here’s what we can expect from the future of BNPL in Australian supermarkets:

The Impact of New BNPL Regulations

The new legislation coming into effect in June 2025 will also significantly impact BNPL usage in supermarkets. With stricter lending guidelines and a more transparent approach to consumer financial health, customers may feel more confident in using BNPL services. The increased scrutiny and regulatory framework will ensure that customers only use BNPL if it is financially feasible for them, reducing the risk of over-commitment and financial strain.

While this might slightly slow the adoption rate of BNPL services at supermarket checkouts, it is likely to create a more sustainable and responsible BNPL ecosystem in the long run. Supermarkets will need to adjust their approach to BNPL adoption, ensuring that the services are offered responsibly while remaining attractive to customers.

Shifting Consumer Behavior

The integration of BNPL options in supermarkets reflects a shift in consumer behavior. Shoppers are now looking for financial flexibility, and BNPL allows them to maintain their purchasing power while managing their budgets. This is particularly appealing in today’s economic climate, where many consumers are prioritizing their cash flow management.

This shift in consumer preferences represents a great opportunity for supermarkets. By embracing BNPL at checkout, they can cater to the evolving demands of modern shoppers, offering more payment choices and improving the overall customer experience.

Final Thoughts

Afterpay and BNPL services have become a significant part of the Australian retail landscape, and their presence is set to grow even more as supermarkets adopt them at checkout. The new legislation taking effect in 2025 will help ensure that BNPL services remain sustainable and responsible, providing more legitimacy and scalability to the sector.

For supermarkets, this presents an excellent opportunity to attract customers by offering a flexible and convenient way to pay. As the BNPL market continues to expand, services like Afterpay are likely to play an even greater role in the way Australians shop, making it an exciting frontier for both retailers and consumers.

Disclaimer:

This content is made for learning only. It is not meant to give financial advice. Always check the facts yourself. Financial decisions need detailed research.