Buy now, pay later (BNPL) is having a moment, you might say.
As found in the report “Buy Now, Pay Later: The Financial Self Care Revolution Report,” done in collaboration between PYMNTS and Sezzle, consumers are more aware than they previously were of their payment and shopping choices. They are also aware of flexibility in how they can pay providers of goods and services.
In fact, the study found that as many as 14% of all online consumers have used BNPL at one point or another – and that equates to about 29 million individuals across the United States. Roughly two-thirds of consumers have used BNPL because that payment option lets them buy the things they want without overspending. And about two-thirds of shoppers say that having BNPL as an option would make them more inclined to shop at those retailers.
‘Shut Out’ Consumers Embrace BNPL
Drilling down a bit, the appeal is especially acute when it comes to the “shut out” consumers who have been excluded from conventional credit access. As for the demographic of those cohorts, the average age is 42 years old, 57% earn under $50,000 per year and 49% live paycheck to paycheck and struggle to pay their monthly bills. More than 76% of these consumers have said that having BNPL on tap means they can buy things more frequently than they otherwise could.
As many as 51% of consumers who used or stated that they would use a BNPL program believe that BNPL products will allow them to improve their credit scores.