The buy now and pay later (BNPL) lending sector provided financing worth PLN 363.5m in October 2023 (+19.4% m/m, +44.3% y/y), according to data from the Financial Market Development Foundation (FRRF) and CRIF. In November, the value of financing (excluding BNPLs) in the traditional non-bank lending sector amounted to PLN 1.12bn.
November’s reading of the number of repossessions of customers applying for non-bank financing was the highest this year, at exactly 1.037 million repossessions, up 4.3% month-on-month and up 26.7% on November 2022. As noted by the Financial Market Development Foundation, the high interest in loans may be due to the many promotions and seasonal sales organised on the occasion of the so-called Black Friday, as well as the preparations for Christmas starting.
The number of consumer loans granted in November was 324,000, compared to 326,000 a month earlier (-0.8%) and compared to 311,000 in November 2022 (+4.1%). In turn, the value of financing granted was almost perfectly equal to that of the month before, amounting to PLN 1.12 billion compared to PLN 1.124 billion in October (-0.3%). At the same time, this is a decrease of 15.1% compared to November 2022, when lending institutions granted loans amounting to PLN 1.319 billion. The average value of a single loan was PLN 3457 in the previous month.
In October, for which the latest CRIF data is available, the deferred payment segment recorded a record level of activity. Providers of buy now, pay later financing provided financing worth PLN 363.5 million, up 19.4 per cent compared to September, when the figure stood at 304.6 million. In year-on-year terms, the increase is even higher at 44.3%.
The number of transactions also increased. In October, it exceeded 1 million units, compared to 823,000 units in September and 668,000 units a year ago. This means that, in numerical terms, BNPL operators recorded an increase of 23% m/m and 51% y/y. The average amount of a single transaction was PLN 360, it was reported.
Source: FRRF/CRIF and ISBnews
