-What are the Buy Now Pay Later Trends and Benefits for Merchants in 2021? -What is the Share of Consumers Who Would Prefer an Interest-Free Installment Payment Option over a Lump-Sum Payment with 10% off? -What is the Buy Now Pay Later Overview of Canadas Service Providers in 2021? For answers find the full report available at: https://ystats.com/shop/north-america-buy-now-pay-later-industry-and-trends-2021/

2. © Copyright 2015 ystats.com GmbH & Co. KG, 22765 Hamburg, Germany 2

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GENERAL METHODOLOGY OF MARKET REPORTS
Secondary Market Research
 The reports are compiled based on secondary market research. Secondary research is information gathered from previously published sources. Our reports
are based on information and data acquired from national and international statistical offices, industry and trade associations, business reports, business and
company databases, journals, company registries, news portals and many other reliable sources. By using various sources we ensure maximum objectivity
for reported data. As a result, companies gain a precise and unbiased impression of the market situation.
 Cross referencing of data is conducted in order to ensure validity and reliability.
 The source of information and its release date are provided on every chart. It is possible that the information contained in one chart is derived from several
sources. If this is the case, all sources are mentioned on the chart.
 The reports include mainly data from the last 12 months prior to the date of report publication. Exact publication dates are mentioned in every chart.
Definitions
 The reports take into account a broad definition of B2C E-Commerce, which might include mobile commerce. As definitions may vary among sources, exact
definition used by the source (if available) is included at the bottom of the chart.
Chart Types
 Our reports include text charts, pie charts, bar charts, rankings, line graphs and tables. Every chart contains an Action Title, which summarizes the main
idea/finding of the chart and a Subtitle, which provides necessary information about the country, the topic, units or measures of currency, and the applicable
time period(s) to which the data refers. With respect to rankings, it is possible that the summation of all categories amounts to more than 100%. In this case,
multiple answers were possible, which is noted at the bottom of the chart.
Report Structure
 Reports are comprised of the following elements, in the following order: Cover page, preface, legal notice, methodology, definitions, table of contents,
management summary (summarizing main information contained in each section of report) and report content (divided into sections and chapters). When
available, we also include forecasts in our report content. These forecasts are not our own; they are published by reliable sources. Within Global and
Regional reports, we include all major developed and emerging markets, ranked in order of importance by using evaluative criteria such as sales figures.
Notes and Currency Values
 If available, additional information about the data collection, for example the time of survey and number of people surveyed, is provided in the form of a note.
In some cases, the note (also) contains additional information needed to fully understand the contents of the respective data.
 When providing information about amounts of money, local currencies are most often used. When referencing currency values in the Action Title, the EUR
values are also provided in brackets. The conversions are made using the average currency exchange rate for the respective time period. Should the
currency figure be in the future, the average exchange rate of the past 12 months is used.

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METHODOLOGY OF THE CURRENT REPORT
Report Coverage
 This report covers North America buy now, pay later market, including USA and Canada. The report also includes data on activities of various governments
globally, businesses, banks, and market trends, as well as consumers preferences and demand drivers.
 Moreover, the report provides an overview of three major BNPL service providers: Klarna, Afterpay, and Affirm. The choice of the companies was based on the
number of customers their serve, as well as on the fact that all three have different countries of origin.
 The report contains relevant information about regulations, international comparisons, market trends, BNPL adoption rates and usage, consumer preferences,
and players. Not all types of information were included for each country, due to varying data availability.
Report Structure
 The report starts with an overview of the global overview of the regulations applied to the BNPL service providers, BNPL trends and benefits for merchants.
 Regional chapters follow the global overview and include information on countries’ activities, consumers’ attitude towards BNPL services, and other data points.
 The market report concludes with the profiles of three major BNPL service providers and their activities during the COVID-19 health crisis, as well as industry
related activities of different payment facilitators.

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DEFINITIONS
 B2C E-COMMERCE
the sale of products (and services) through electronic transactions via the Internet from businesses to
consumers (B2C). A broader definition of retail E-Commerce applied by some sources also includes consumer-
to-consumer (C2C) sales.
 E-COMMERCE SALES
the total sales generated either on the E-Commerce market in a certain country or region, or the total sales
generated through E-Commerce by a player on the market.
 CROSS-BORDER B2C E-COMMERCE
the sale of goods (and services) directly to consumers in other countries, with orders delivered from the country
where the foreign shop is based or from a central logistics facility, i.e. across the country’s borders. Both B2C
and C2C transactions might be included in the definition of retail cross-border E-Commerce.
 FIAT MONEY inconvertible paper money made legal tender by a government decree
 INTERNET USERS the total number of inhabitants in a certain country that regularly accesses the Internet.
 ONLINE SHOPPERS the total number of inhabitants in a certain country or region that participates in B2C E-Commerce.
 E-COMMERCE MARKETPLACE
platforms where third-party merchants (B2C) or individuals (C2C) can sell their digital or physical products
online whereas the marketplace operator acts as an intermediary.
 BUY NOW, PAY LATER (BNPL)
a payment platform or service that allows shoppers to receive goods/services prior to making a payment by
splitting the payment across a set time period or pay back the full amount later
The following expressions and definitions are used in this market report*:
Note: *the definitions used by the original sources might differ from the ones stated on this chart; the exact definition used by each source, where available,
is included on the respective charts

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TABLE OF CONTENTS (1 OF 3)
1. Management Summary
2. Global Overview
• BNPL Regulations Overview, April 2021
• BNPL Trends and Benefits for Merchants, April 2021
• Breakdown of Payment Methods When Booking a Service Related to Travel, incl. BNPL, in % of Adult Travelers, 2020
3. United States of America
• BNPL User Penetration Rate, in %, and Share of BNPL Users Who Missed at Least One Payment, in %, December 2020
• BNPL User Penetration Rate, in % of Respondents, and Change in Use of BNPL Compared to March 2020, in %, by Age Groups,
September 2020
• BNPL Service User Penetration Rates, by Age Groups, in % of Consumers, July 2020 & March 2021
• Breakdown of BNPL Usage, by Credit Utilization Rate at First BNPL Transaction, in %, July 2020
• Share of Consumers Who Would Prefer an Interest-Free Installment Payment Option over a Lump-Sum Payment with 10% off, in
% of Shoppers, September 2020
• Breakdown of Most Common BNPL Lenders Used, incl. Afterpay, Affirm, Bread, GreenSky, Klarna, and QuadPay, in % of BNPL
Users, May 2020
• Breakdown of Most Common BNPL Lenders Used, incl. Affirm, Afterpay, FuturePay, Klarna, and PayPal, in % of Adult BNPL
Users, March 2021
• Number of BNPL Users, by Service Provider, incl. Affirm, Afterpay, Bread, FuturePay, Klarna, PayPal, QuadPay, Sezzle, and
Splitit, in millions, November 2021
• BNPL Service Providers Overview, incl. Affirm, Afterpay, Klarna, and QuadPay, by Repayment Terms, Interest Rates & Fees, and
Credit Score Effect, October 2020
• Overview of Zip Co’s and QuadPay’s Partnership, and Financial and Operating Performance Metrics after the Acquisition,
December 2020
• Breakdown of BNPL Users’ Attitude Towards BNPL Lenders Compared to Credit Card Companies, in % of Adult BNPL Users,
March 2021
• Breakdown of BNPL Frequency Usage, in % of Adult BNPL Users, July 2020 & March 2020
• Average Amount Spent via BNPL, in % of Adult BNPL Users, March 2021

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TABLE OF CONTENTS (2 OF 3)
3. United States of America (cont.)
• Breakdown of Most Common BNPL Use Cases, by Product Category, in % of BNPL Users, May 2020
• Breakdown of Reasons to Use BNPL, in % of Online Consumers, September 2020
• Breakdown of Online Consumers Who Would Be “Very” or “Extremely” Interested in BNPL, by Age Group, in % of Non-BNPL
Users, March 2020 & September 2020
• Breakdown of Reasons to Use BNPL, in % of Consumers, July 2020
• Breakdown of Intentions to Use BNPL Services in the next 12 Months, in % of Adults, July 2020 & March 2021
• Share Consumers Who Would be “Very” or “Extremely” Interested in Using Digital Wallets that Offered Select Plans, by Age
Groups, in %, September 2020
• Breakdown of Shopper Purchase Behavior Change With a Pay-over-Time Option Available, in % of Shoppers, September 2020
4. Canada
• Overview of BNPL Service Providers, incl. Flexiti and PayBright, April 2021
• Breakdown of Respondents Who Wish BNPL Option to be Offered, by Checkout Channel, and by Age Groups, in %, January
2021
5. Major BNPL Service Provider: Klarna
• Klarna’s Activity Overview, April 2021
• Top 10 CNBC Disruptor Companies, incl. Klarna, June 2020
• Klarna’s Total Net Operating Income, and Net Profit, in SEK thousands, 2016 – 2020
• Overall Number of Klarna’s Users, and Klarna’s Monthly Active App Users, in millions, 2019 & 2020
• Terms of Use of Klarna’s Services, incl. Pay in 4, Pay in 30, Pay Now, and Financing, March 2021
• Share of Klarna’s User Who Ever Missed a BNPL Payment, in %, October 2020

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TABLE OF CONTENTS (3 OF 3)
6. Major BNPL Service Provider: Afterpay
• Afterpay’s Activity Overview, April 2021
• Overview of Afterpay’s, PayPal’s and CommBank’s BNPL Service, incl. credit check, individual purchase price, max credit limit,
Use Cases, Payment Plan, and Late Fees, March 2021
• Afterpay’s Underlying Sales, Net Transaction Margin, Gross Losses, Total Income, Active Customers, Merchants, FY 2016 – FY
2020, and Year-on-Year Change, in %, FY 2020
• Share of Transactions via Afterpay that are Paid Back on Time, in %, February 2021
• Afterpay’s Share of Late Fees, in % of Afterpay’s Total Income, February 2021
7. Major BNPL Service Provider: Affirm
• Affirm’s Activity Overview, April 2021
• Overview of Affirms’s Key Financial Metrics, incl. GMV, Total Revenue, Transaction Costs, and Adjusted Operating Loss, Q4
2019, Q4 2020, H2 2019, H2 2020
• Overview of Affirms’s Key Financial Metrics, incl. GMV, Total Revenue, Transaction Costs, Adjusted Operating Loss, and
Weighted Average Shares Outstanding, Fiscal Q3 2021e, and Fiscal 2021f
• Affirms’s Active Users, in millions, December 2019, June 2020, and December 2020
8. Payment Facilitators Offering BNPL Services
• Various Facilitators’ BNPL Activity Overview, incl. Stripe, Mastercard, and Shopify, March 2021
• Share of PayPal Credit’s User Who Ever Missed a BNPL Payment, in %, October 2020

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1.
2.
3.
4.
Management Summary
Global Overview
United States of America
Canada
10 - 13
14 - 18
19 - 40
41 - 43
5.
6.
7.
8.
Major BNPL Service Provider: Klarna
Major BNPL Service Provider: Afterpay
Major BNPL Service Provider: Affirm
Payment Facilitators Offering BNPL Services
44 - 51
52 - 57
58 - 63
64 - 67

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Over 75 percent
62%
Between 50 and 75 percent
15%
Between 25 and 50 percent
11%
Less than 25 percent
12%
In the USA, the majority (62%) of first-time BNPL service users had
credit utilization rate over 75%, as of July 2020.
USA: Breakdown of BNPL Usage, by Credit Utilization Rate at First BNPL Transaction, in %, July 2020
Survey: the source did not provide further details of the survey
Source: Cardify, July 2020

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40.3%
41.9%
51.3%
0% 25% 50% 75% 100%
Would be less likely to return purchase
Would make more repeat purchses
Would make larger purchases
in % of Shoppers
Making larger purchases (51%) was the top purchase behavior change
for US shoppers with a pay-over-time option available, as of Sept. 2020.
Survey: based on a survey of 600 shoppers in the United States, conducted in September 2020; question asked “How would your shopping purchase behavior change with a pay-
over-time option?“
Source: Bread, November 2020
USA: Breakdown of Shopper Purchase Behavior Change With a Pay-over-Time Option Available, in % of
Shoppers, September 2020

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