Italians' shopping is becoming increasingly digital. This is an evolution that also concerns the channel chosen to manage one's purchases thanks to the additional possibilities offered by the market. Over the past two years, consumers have increasingly appreciated the benefits of innovative online services to conveniently make their purchases and defer payments. Since June 2022, the use of "Buy Now, Pay Later" - online or in-store - has grown steadily, reaching +139.26%, and shows no sign of slowing down: in June compared to May, in fact, BNPL grew by 8.68% with an average amount financed of €149. And if the younger generations were the first to experiment with this new funding channel, with Millennials (29-44 years old) and GenZ (18-28 years old) still representing over two-thirds of users (67.95%), now the push is also coming from the older segments of the population. In the last year, in fact, the use of BNPL by the over-45s has grown by an average of +24%. These are some of the data highlighted in the latest Italian Credit Report – Trends & Insights  by Experian, Data Tech Leader in the credit market, for the month of June 2024.

"This increase in the use of Buy Now, Pay Later demonstrates consumers' continued focus on convenience and planning their spending so they can make purchases at the most convenient times, without having to immediately commit money to the full amount. The data we find on the market, with the particular diffusion of BNPL among younger users and in Southern Italy, demonstrate its role as an inclusive tool for population groups with traditionally lower purchasing power," commented Armando Capone, CEO of Experian Italia. "Experian works with every type of organization that uses BNPL, from specialized fintechs to traditional financial institutions, to provide visibility into BNPL activity and advanced analytics of consumer payment behavior to drive informed decisions and timely, faster actions, with greater confidence."

"In recent years, Buy Now Pay Later (BNPL) has experienced an exponential rise in Italy, establishing itself as a payment method increasingly appreciated by consumers and requested by merchants. This trend is mainly driven by young people, but the charm of this payment method is also conquering the older generations, with a significant increase among the over-45s. This growth is also favored by the expansion of BNPL beyond its traditional reference sector, fashion: Klarna, for example, has recorded an increase in the average age of its users thanks to collaborations with national and international players in the electronics, ticketing, travel and furniture and DIY sectors. Italy, in this scenario, stands out for a growth rate of BNPL similar, if not even higher, than that of countries with more experience in the sector, such as the United States and the United Kingdom. A figure that testifies to the global diffusion of this innovative financing model and its ability to respond to the needs of an increasingly wide audience," commented Gessica David, Head of Partner Success, Klarna Italy. "Ultimately, BNPL is an evolving phenomenon that is revolutionizing the payments landscape in Italy, offering consumers greater flexibility and convenience in purchases and companies new opportunities for growth. At Klarna, we are proud to contribute to this credit revolution with cutting-edge services and Experian is the ideal partner for us as it allows us to have innovative solutions available to assess the riskiness of subjects and promote a safe use of BNPL."

AFTER BOOMING IN 2022, BNPL GROWTH IS ALIGNING WITH GENERAL SPENDING PERIODS

The trends highlighted by the Experian Report regarding the trend of BNPL over the years have clearly highlighted an explosion in its use during the pandemic period, which has seen Italian consumers forcibly rely more on e-commerce and online platforms. Since 2023, the use of BNPL has continued to grow (+40.4%) but in a more organic way and aligned with periods of generalized spending, incentivized by holidays, offers and sales. The first half of the year, in fact, shows a decrease in the use of BNPL of -4.23% compared to the July-December 2023 period, precisely because spending related to summer sales, Black Friday, holidays and Christmas offers was concentrated in the latter. BNPL then started to grow again in April, reaching +8.68% in June: in the second quarter of the year, in fact, BNPL requests grew by +10.5% compared to the January-March period.

The clothing sector attracts the largest number of requests, accounting for 82% of the total. This is followed by use for purchases related to outdoor activities such as gardening or camping (6%), for the purchase of sports equipment (4%), for travel expenses related mainly to transport and accommodation (3%), for the purchase of jewelry (3%) and, finally, of personal care products and services (1.5%). The arrival of the summer sales therefore portends a new increase in requests.

GENZ AND MILLENNIALS EXPAND USAGE, BUT SO ARE THE DEMANDS OF THE OVER-45

Demographically, younger population groups naturally account for the majority of BNPL customers, and usage continues to expand month after month: since May, enquiries have increased by +9.14% for GenZ and +7.54% for Millennials. However, GenX – which includes the 45-60 age group – is also gaining more weight, accounting for a quarter of the total number of users (25.5%) and both GenX and Baby Boomer requests have been increasing since last year, by +36% and +26% respectively.

THE SOUTH IS THE LARGEST USER OF BNPL, IN NAPLES THE USE IS +48% IN JUST ONE YEAR

Going into detail about the national distribution, BNPL is most used in the South, which accounts for 36.6% of total requests, with a more incisive growth than in the other Nielsen areas considered: the year-on-year variation is in fact 42.7%, more than 6 percentage points compared to the North. The North East is the area where BNPL is least used, with only 13% of requests. The North West and Centre are equivalent with about 25% of the total, although the Centre has recorded significant growth since last year of +44%.

This evidence also emerges by considering the data of the main Italian cities analyzed by area: 7.68% of total requests are concentrated in Naples, up 48% since May 2023, while only 0.87% are concentrated in Venice.