What influences demand for Buy Now, Pay Later credit?

•BNPL is more popular with single individuals, younger people, and those on lower incomes.•BNPL demand is negatively associated with interest rates.•BNPL demand increases following the end of COVID-19 lockdowns. We investigate the determinants of demand for Buy Now, Pay Later (BNPL) credit using a comprehensive database from New Zealand. We consider both absolute demand and relative to total personal lending demand. The results indicate that BNPL is more popular with single individuals, younger people, and those on lower incomes. There is a negative relation between absolute and relative BNPL demand and interest rates. BNPL demand was reduced during the period around responsible lending legislation changes, even though these were not specifically related to BNPL, while demand increased following the end of COVID-19 lockdowns.