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Data for today’s episode is provided by Mercator Advisory Group’s Viewpoint: 2021 North American PaymentsInsights – Buy Now Pay Later
Characteristics of Buy Now Pay Later Consumers:
- BNPL is more popular than short-term loans. Usage skews toward younger, middle income consumers and those without sufficient credit.
- Typical consumer profile for BNPL short-term loans: 18-24 and tech savvy.
- Typical BNPL consumers will also have an annual income around $75-149K and will be equally distributed nationally.
- Buy Now Pay Later loans are procured online and in-person an equal amount. A BNPL loan is likely to be a last-minute decision at checkout.
- Zero interest loans are more widely available for online purchases, while in-store purchases are
- more likely to involve interest.
- More BNPL loans are issued by the retailer, while short-term financing was more likely to be provided by a third-party lender.
Mercator Advisory Group has released a new primary research report titled 2021 North American PaymentsInsights – Buy Now Pay Later, summarizing the findings from the BNPL and short-term financing sections of the semi-annual North American PaymentsInsights survey of 3,001 U.S-based adults. The report aims to highlight and analyze consumer behaviors, preferences, and motivations as they relate to the rapidly expanding range of point-of-sale financing products. Readers will be presented with a detailed analysis of the impact of demographic characteristics on consumer behaviors and inclinations, general consumer trends, as well as actionable recommendations for industry players.
“The rise of buy now, pay later financing and short-term loans has implications for the consumer credit space as a whole, particularly credit card networks and issuers that have long dominated the industry. With interest rates at record lows, accelerated adoption of online shopping over the past 12 months, and high consumer satisfaction – the conditions have never been better for the reimagining of consumer credit,” stated Amy Dunckelmann, Vice President, Research Operations, Mercator Advisory Group.