-What is the Share of Consumers Who Would Like BNPL Added to the Credit Card or Current Account? -What Top 5 Banks Offering BNPL Financing? -What is the Average Customer Debt? For answer you can find the full report available at: https://ystats.com/shop/europe-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 European buy now, pay later market. The report covers activities of various governments, businesses, banks, and market trends, as well as
consumers preferences and demand drivers.
 The following countries were mainly considered in this market report: Austria, France, Germany, Poland, Russia, Switzerland, and the UK. Moreover, the report
provides an overview of two major BNPL service providers active in Europe: Klarna and Afterpay. 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 chapter 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 two major BNPL service providers and their activities during the COVID-19 health crisis.

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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, March 2021
• BNPL Trends and Benefits for Merchants, March 2021
• Breakdown of Payment Methods When Booking a Service Related to Travel, incl. BNPL, in % of Adult Travelers, 2020
3. Europe
• Share of Cross-Border BNPL, in % of Total Cross-Border BNPL Transaction Value, 2025f
• Overview of BNPL Startups, incl. Tymit, Montonio, Revo, Zilch, and Alma, March 2021
• Breakdown of Select Payment Methods Offered by Merchants, by “Growth” and “Non-Growth” Mindsets of Merchants, incl. BNPL,
in %, September 2020
• Breakdown of Credit and BNPL Providers Used, in % of Respondents, October 2020
• Share of Consumers Who Would Like BNPL Added to the Credit Card or Current Account, in % of BNPL Users, October 2020
• Share of BNPL Users who Prefer to Pay via Installments, and in One Later Lump-Sum Payment, in %, October 2020
• Average Customer Debt, in GBP, by BNPL Service Providers, and by Age Groups, August 2020
• Average BNPL Time to Pay Back, in months, by BNPL Service Providers, and by Age Groups, August
• Share of Respondents Who Spent More due to BNPL Option Available, and Share of Respondents Who Missed a BNPL
Payment, in %, October 2020
• Breakdown of BNPL Usage Cases, in % of BNPL Users, August 2020
• Breakdown of Payment Methods in Online Shopping, in % of the Total E-Commerce Transaction Value, July 2020
• Breakdown of Payment Methods Used for Online Purchases, in % of Respondents, December 2020
• Breakdown of Reasons to Choose an Online Payment Methods, in % of Respondents, December 2020
• Overview of Oney Bank’ BNPL Activity, March 2021
• Breakdown of Top Requirements to a BNPL provider, in % of Respondents, 2020
• Breakdown of the Channels of the Last BNPL Payment, and the Potential BNPL Channel, in % of Respondents, 2020
• BNPL Adoption Rate, in % of Respondents Aware of BNPL, and Breakdown of Respondents Attitude Towards BNPL Usage in the
Future, by Consumer Type, in % of BNPL Users, 2020
• Breakdown of Payment Methods Used for Online Purchases, in % of Respondents, December 2020

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TABLE OF CONTENTS (2 OF 3)
3. Europe (cont.)
• Breakdown of Reasons to Choose an Online Payment Method, in % of Respondents, December 2020
• Breakdown of Payment Methods Used for Online Purchases, in % of Respondents, December 2020
• Breakdown of Reasons to Choose an Online Payment Methods, in % of Respondents, December 2020
• Overview of BNPL Service Providers, incl. Alma and PayPal, April 2021
• Breakdown of Payment Methods Offered, incl. Deferred and Installment Payments, in % of Online Retailers, October 2020
• Top 5 Banks Offering BNPL Financing, by Value, in RUB billion, by Market Share, in % of the Total BNPL Financing Value, and
Year-on-Year Change, in %, October 2020
4. Major BNPL Service Provider: Klarna
• Klarna’s Activity Overview, March 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
5. Major BNPL Service Provider: Afterpay
• Afterpay’s Activity Overview, March 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

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TABLE OF CONTENTS (3 OF 3)
6. Major BNPL Service Provider: Affirm
• Affirm’s Activity Overview, March 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
7. 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.
5.
Management Summary
Global Overview
Europe
Major BNPL Service Provider: Klarna
Major BNPL Service Provider: Afterpay
10 - 13
14 - 18
19 - 44
45 - 52
53 - 58
6.
7.
Major BNPL Service Provider: Affirm
Payment Facilitators Offering BNPL Services
59 - 63
64 - 66

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Online
59%
In-store
26%
Both online and in-
store
15%
Channel of the potential BNPL
Channel of the last BNPL
Online
56%
In-store
44%
The majority (59%) of respondents in Germany in 2020 chose to use
BNPL online, and 56% would prefer to do so in the future.
Germany: Breakdown of the Channels of the Last BNPL Payment, and the Potential BNPL Channel, in %
of Respondents, 2020
Survey: based on a survey of 495 respondents in Germany for the question of the last BNPL, and 61 respondents for the question of the potential BNPL, conducted in 2020;
question asked: “Which channel did you use to complete the BNPL payment? Which channel would you use to complete a BNPL payment?“
Source: IGH Köln, 2020

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Ever missed a payment
29%
Other
71%
In the UK, 29% of PayPal Credit’s users admitted in an October 2020
survey that they had at least one BNPL missed payment.
UK: Share of PayPal Credit’s User Who Ever Missed a BNPL Payment, in %, October 2020
Survey: based on a survey of 2,016 UK respondents conducted in October 2020; question asked: “Would you like BNPL on your credit card or in your current account?”
Source: Capco, November 2020

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