Australia Alternative Lending Business Report 2025: Afterpay and Zip Lead BNPL, While Prospa Drives Consolidation in SME Lending - Forecast to 2029 - ResearchAndMarkets.com

DUBLIN--(BUSINESS WIRE)--The "Australia Alternative Lending Market Size & Forecast by Value and Volume Across 100+ KPIs by Type of Lending, End-User Segments, Loan Purpose, Finance Models, Distribution Channels, and Payment Instruments - Databook Q4 2025 Update" has been added to ResearchAndMarkets.com's offering.

With a CAGR of 13.8% projected from 2025-2029, the market could reach US$33.58 billion by 2029, showcasing substantial growth beyond the 2024 figure of US$17.70 billion.

The market is transitioning from rapid product development to policy-roots and data-driven scalability. Key drivers include the regulatory shift in BNPL, where full credit regulation comes into effect by June 2025, requiring compliance with responsible lending norms. Embedded finance is gaining traction, highlighted by partnerships like Zip, Xero, and Stripe, enhancing platforms with integrated credit solutions.

The extension of the Consumer Data Right (CDR) to non-bank entities is expected to streamline lending processes with verified data, initiating from mid-2026. Moreover, brokers are increasingly pivotal in SME lending, aligning credit options with evolving market dynamics.

Competitive Landscape

As the alternative lending sector matures, larger players with robust compliance frameworks and efficient capital use are set to dominate. The introduction of regulatory frameworks, particularly impacting BNPL, is reshaping competitive dynamics. Both Afterpay and Zip lead in the BNPL sector, with Afterpay expanding its reach through a notable integration on Amazon Australia. Prospa is a prominent figure in small business lending, having acquired Zip Business's lending portfolio. These movements indicate a strategic consolidation toward sustainable operations amid heightened regulatory and funding challenges.

Market Positioning and Strategic Outlook

Competition is shifting from speed-focused to scale-oriented growth, with compliance and credit resilience coming to the fore. Smaller BNPL firms may struggle under new compliance burdens, whereas SME-focused lenders are set to differentiate themselves through service excellence and embedded finance solutions. Collaborative strategies between fintechs and traditional banks are likely to rise, driven by the need to innovate in emerging credit markets. Those leveraging operational discipline and embedded distribution are expected to gain significant market advantage.

This report offers a comprehensive, data-centric view of Australia's alternative lending sector, covering extensive market segments through over 100 KPIs. The analysis spans lending types, finance models, and borrower demographics, providing vital insights into market size, structure, and behaviors, critical for stakeholders aiming to navigate the evolving lending landscape effectively.

Reasons to Buy

• Gain integrated insights into overall and alternative lending environments, linking macroeconomic context with detailed performance indicators like loan disbursement and ticket sizes.
• Explore the fast-evolving alternative lending ecosystem, including P2P marketplaces and hybrid finance models, with deep segmentation by user, loan purpose, and payment methods.
• Understand borrower demographics and behaviors through age, income, and credit risk analytics.
• Evaluate Australia's digital infrastructure that supports fintech-driven lending growth, including wallet adoption and real-time payments.
• Access crucial data and KPI benchmarks to identify emerging lending trends, growth drivers, and investment opportunities.
• Use the data-centric report format for seamless integration into strategy and financial planning.

Key Attributes:

Report Attribute	Details
No. of Pages	200
Forecast Period	2025 - 2029
Estimated Market Value (USD) in 2025	$20.03 Billion
Forecasted Market Value (USD) by 2029	$33.58 Billion
Compound Annual Growth Rate	13.8%
Regions Covered	Australia

For more information about this report visit https://www.researchandmarkets.com/r/yju28a

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