New research from the Strawhecker Group analyzes consumer attitudes, market trends and year-over-year comparisons
Omaha, NE, April 12, 2022 (GLOBE NEWSWIRE) — The Strawhecker Group (TSG), a globally recognized payments industry analytics, intelligence and advisory firm, has released the results of a survey of more than 500 US consumers covering the Buy Now, Pay Later (BNPL) market. The full results, covered in TSG’s new report titled Buy Now, Pay Later: An Analysis of Key Trends and Consumer Attitudes, Part 2highlight current market and emerging trends in the BNPL space, as well as changing consumer expectations and experiences over the past year.
Consumers value Buy Now, Pay Later (BNPL) for a variety of reasons, but new data shows that 80% of people rate “zero interest” as the most critical factor when choosing a BNPL provider. Other key factors include easy returns, no late fees, a short application process, and a corresponding payment app.
“The rise of BNPL can be attributed to a number of economic and social drivers; however, external forces aside, little research has been done on the types of factors consumers look for in a BNPL installment loan product itself, said Jared Drieling, senior director of Market Intelligence and Insights at TSG.
BNPL has grown in popularity over the past few years, particularly in Europe, Asia, Australia and parts of South America. As e-commerce spending increases and avoiding credit card debt continues to be a priority for consumers, BNPL is expected to maintain its position as a popular option.
TSG found that 60% of BNPL users said they intend to continue using this payment method in the future, up from 46% in 2021. Overall, BNPL app printing appears to have grown in popularity among consumers, although 48% of users noted that their use of credit cards had not changed since they started using BNPL.
Average spending reported by consumers using BNPL services remained largely the same in 2022 compared to the prior year at $302 from $312. However, the percentage of consumers who report spending the “same” amount using BNPL compared to when using other payment methods increased by 14% in 2022.
The discussion around the transparency of BNPL options has led to calls for further research to understand the influence of short-term installment loans on consumers and whether they are coercive. A key area of study is whether or not BNPL options cause or influence consumer indebtedness.
“Only 29% of consumers said they would be able to pay for their BNPL plans immediately if needed, 28% were unsure if they could and 43% said they could not if needed. immediate,” added Drieling.”
Additionally, 88% of consumers said they never miss a payment on their installment loans. Of those who missed a payment, 54% said they paid late fees.
Download TSG’s free 18-page mini-report covering several key findings. The full 59-page electronic report is exclusive to subscribers. TSG subscribers Subscription to electronic reports service have access to this content and dozens of other deep dives, industry directories, country and company profiles, and educational primers.
Highlights of Buy Now, Pay Later: An Analysis of Key Trends and Consumer Attitudes, Part 2:
Trends and new developments
Key players: a global look
Recent M&A Activity
Impact on the use of consumer cards
The Future of Buy Now, Pay Later
Companies mentioned in this report include: Affirm, Afterpay, Amazon, American Express, Barclays, Citi, Goldman Sachs, Grab, GreensSky, Handypay, JPMorgan Chase & Co., Klarna, Mastercard, Monzo, Openpay, PayPal, Perpay, Sezzle, SplitIt, Square, Visa and Zip.
The Strawhecker Group (TSG) is a globally recognized analytics and advisory firm supporting the entire payments ecosystem, serving more than 1,000 customers, from Fortune 500 leaders to more than a dozen of the world’s most valuable brands. Recognized by industry leaders, TSG’s strategic services, market intelligence and analytics merge to give clients actionable and accessible insights. Please visit www.TheStrawGroup.com.
CONTACT: Andrew Nuss The Strawhecker Group 4029642617 email@example.com