Stealing credit: Millions ditch traditional loans for Buy Now Pay Later
Millions are now primarily opting for Buy Now Pay Later (BNPL) services over traditional forms of credit, according to new research by Finder.
A Finder survey of 1,017 respondents revealed 16% have shifted from using personal loans or credit cards to using Buy Now Pay Later (BNPL) services instead.
That's 3.4 million people who are primarily using BNPL services for purchases over personal loans or credit cards in the past 12 months.
More than 1 in 4 (27%) prefer to use personal loans or credit cards, while 13% use all of the above for different reasons.
Richard Whitten, money expert at Finder, said new regulations are now placing BNPL services under the same rules as credit cards and loans.
"For a long time, there was a common misconception that using BNPL wouldn't impact your credit score, but that has now been well and truly put to bed.
"Many consumers, particularly younger users, believed that BNPL was a "credit-free" option that wouldn't affect their financial reputation.
"Under the new regulations, BNPL companies will now be required to hold an Australian Credit License, bringing them under the same regulatory umbrella as other lenders."
Women (20%) are more likely than men (12%) to admit they use BNPL over personal loans or credit cards, while men are more adamant about using personal loans and credit cards over BNPL (32% and 22% respectively).
Younger generations are more likely to use BNPL over other forms of credit, with gen Z (22%) and gen Y (18%) saying they primarily use the service, compared to gen X (16%) and baby boomers (6%).
Whitten said it's no surprise BNPL is a lot more popular with the younger generation because it's an accessible alternative to credit cards.
"The application process is much simpler and faster than applying for a credit card, often taking just a few clicks at the checkout.
"It gives them the immediate gratification of a purchase without the long-term commitment of a credit card."
Whitten said in good news for consumers, BNPL providers will be required to take reasonable steps to prevent customers from overextending themselves.
"The fundamental difference between personal loans, credit cards, and BNPL still remains – BNPL services generally do not charge interest – which makes it more appealing, especially to younger people.
"While the absence of interest can make it seem "cheaper" than a credit card or a personal loan, it's important to remember that late fees can quickly accumulate, and have long-term financial consequences.
"Despite its "interest-free" nature, BNPL is still a form of credit, and using it responsibly is now more important than ever."
In the last 12 months, have you shifted from primarily using personal loans or credit cards towards using Buy Now Pay Later (BNPL) for purchases?
| Yes, I use BNPL instead | 16% |
| No, I prefer to use personal loans/credit cards over BNPL | 27% |
| I use both personal loans/credit cards and BNPL for different reasons | 13% |
| I do not use personal loans, credit cards, or BNPL | 44% |
| Source: Finder survey of 1,017 respondents, June 2025 |  |
Methodology
- Finder's Consumer Sentiment Tracker is a monthly recurring nationally representative survey of more than 60,000 respondents.
- Figures in this release are based on 1,017 respondents from June 2025.
- The Consumer Sentiment Tracker is owned by Finder and operated by Qualtrics.
- The survey has been running monthly since May 2019.
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