Don’t miss another episode of Truth In Data! Click on the red bell in the lower-left of your screen to receive notifications as soon as the episode publishes.
Data for today’s episode is provided by Mercator Advisory Group’s Viewpoint: 2021 North American PaymentsInsights – Buy Now Pay Later
Why Consumers Choose Buy Now Pay Later Options:
- Buy Now Pay Later (BNPL) loans are more popular in online settings than in-store settings. Consumers tend to use short term financing for in-store purchases.
- Younger and middle aged people are about as likely to take out BNPL loans for online purchases.
- Consumers who identify as “tech forward” are most likely to use BNPL loans for online and in-store purchases.
- More BNPL loans are issued by retailers, while short-term financing is more likely to be provided by a third party lender.
- Older consumers are more likely to cite “No Interest Rate” and/or “More time to pay off the loan” as their driving reason for choosing BNPL.
- Reasons for borrowing through short-term financing are more varied by age: younger shoppers have less credit and funds vs. older.
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.