Half of European consumers now use buy now, pay later services

Half of consumers across Europe now use instalment payments or pay-later services, according to a representative survey of 2,663 respondents across Germany, Austria, France, Italy and Switzerland, commissioned by online retailer Galaxus and conducted by YouGov.

Most of those users aren't making one-off exceptions. In Germany and France, 40% use BNPL for multiple purchases per year. In Austria, a third do so monthly. In Germany, 20% pay in instalments every month and 10% every week.

Most Users Choose BNPL Multiple Times per Year

How often do you buy products that you pay for using BNPL or in instalments?

Data: Representative survey conducted by YouGov, commissioned by Galaxus

Switzerland is the outlier. Only a quarter of Swiss respondents said they used BNPL at all, and 40% of those who do use it only once a year or less.

What's driving adoption

Financial planning is the primary reason consumers reach for BNPL. "I can easily incorporate the payments into my monthly budget" was the most common answer in every country surveyed.

Beyond budgeting, around 25% of users across Europe cite convenience. A sixth of respondents said instalments made products feel less expensive, and 20% of BNPL users say they couldn't afford the product otherwise — in France, that figure rises to a third.

For Most People, It's a Question of Planning

Why do you choose to pay in instalments?

Data: Representative survey conducted by YouGov, commissioned by Galaxus

Electronics lead, but category patterns vary by market

In the EU countries surveyed, electronics are the most common instalment purchase. Fifty pecent of German BNPL users, 54 % in Italy and 44 % in France reported paying for electronics in instalments.

Clothing shows a notable split. In Germany and Austria, a quarter of respondents pay for clothing in instalments, significantly higher than in the other markets. Household appliances are the standout category in France and Italy, where 40 % of BNPL users pay for them in instalments, roughly double the rate in Switzerland and Germany.

In the EU, Most People Pay for Gadgets in Instalments

Share of BNPL users paying in instalments, by product category

Data: Representative survey conducted by YouGov, commissioned by Galaxus

Across EU markets, BNPL is most commonly used for purchases above €250. In Switzerland, the threshold sits higher at CHF 1,000.

The emotional toll

The survey surfaced one finding that operators and BNPL providers should pay attention to: the mental health impact of instalment payments. In Switzerland, 23% of respondents said regular instalment payments strongly or very strongly affected their mental health.

Germany's consumer watchdog, the Verbraucherzentrale, has warned shoppers not to be "fooled by the simplicity and convenience" of BNPL, urging consumers to keep the total cost in mind and seek help if needed.

The Emotional Toll Is Highest in Switzerland

How strongly does making regular instalment payments impact your mental health?

Data: Representative survey conducted by YouGov, commissioned by Galaxus

Half the consumer base in four of five European markets now expects instalment options at checkout. That makes BNPL less of a payment add-on and more of a conversion lever. But the data also shows variance across markets, so for brands expanding across European markets, one BNPL strategy won't fit all.