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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
Young People Use Buy Now Pay Later & Short Term Financing:
- Young people have fewer resources to finance their purchases, which explains the higher popularity of buy now, pay later and short term financing among younger age cohorts.
- Younger people may also be more willing to try out new payment methods and not shy away from offers made to them at the time of purchase.
- People in the youngest age cohort may have limited credit, making BNPL one of the only financing options available to them.
- 52% of consumers ages 18-24 used BNPL or short-term loans in the past twelve months, compared to only 12% of those older than 65.
- 22% of unemployed respondents have used BNPL and/or short-term financing, compared to 44% of those that are employed.
- Respondents from the youngest age cohort (18-24) were most likely to report borrowing due to insufficient funds on their credit line, as well as not having a credit card.
About Report
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.
