According to new research by Commonwealth Bank, Australian parents are expected to spend $2 billion on back to school shopping for their kids.

Fifty-eight per cent of these have or intend to do this by purchasing via buy now, pay later or with a credit card.

Commenting off the back of the findings, Openpay head of retail Sonia Nixon said Aussies are increasingly seeing the value in BNPL services, particularly around this time of year.

“Back to School can be an expensive time for families. This key annual event comes straight off the back of a big spending period from Christmas through holidays,” Ms Nixon explained.

The flexibility provided by BNPL will ensure its popularity going forward, according to Ms Nixon.

“Offering consumers the ability to use buy now, pay later to spread big upfront costs over time becomes very appealing. Similarly, it has huge advantage for consumers who experience bill shock from a trip to the vet, unexpected dental work, unplanned need for new car tyres or even having to purchase a wedding gift,” she said.

“Often these events hit you at the same time, so having the flexibility to spread out the total cost with no interest payment plans is a very sensible option.

“Consumers can get everything they want and need now rather than waiting, and take advantage of all the great sales around even selecting a more premium product. A smarter way to pay for consumers to start the new year.”