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Data for today’s episode is provided by Mercator Advisory Group’s Report: 2021 North American PaymentsInsights – Buy Now Pay Later
Demographics of BNPL Borrowers Who Take Out Multiple Loans Simultaneously:
- More than half of BNPL and short-term financing borrowers take out more than one loan simultaneously.
- 67% of BNPL loan borrowers have taken out more than one loan simultaneously, compared to 65% of those who have used short-term financing.
- Over 13% of BNPL borrowers have taken out more than 10 loans simultaneously.
- 31% of respondents ages 18-24 have taken out 5+ loans, making them the most likely age cohort to do so.
- 30% of BNPL borrowers earning $150K+ have borrowed more than 5 loans at once, compared to just 13% of borrowers earning under $50k.
- Mercator Advisory Group survey results demonstrate that respondents who took out a greater number of loans are more likely to have missed or been late making payments.
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.