BNPL: Research Report Indicates that 41% Have Used Credit Service, 26% Have Missed a Payment

Buy now, pay later (BNPL) services are poised to replace credit cards as the preferred payment method for higher-cost purchases. By automating the borrowing process, consumers may save money by paying a lower interest rate in an installment loan-like service. BNPL’s have boomed in the past two years as providers and merchants have rushed to incorporate these services.

Piplsay, a research house, has just published a survey regarding BNPL’s. According to their results, 41% of respondents have used BNPL in the past year. Simultaneously, 26% of users have missed a payment at least once in the past year. 52% of users had an average purchase limit of just $400. Piplsay polled 30,880 people nationwide to garner their results.

Piplsay states that while BNPLs have experienced “explosive growth,” there is “rising concern and scrutiny over its potential downside of creating high consumer debt.”

Additional data points include:

  • 45% have not used BNPL
  • 39% of users chose BNPL because they did not want to make the full payment at once
  • 37% said the purchase was expensive – hence utilization
  • 24% did not have enough money to pay for the product
  • 57% of men have used ‘buy now, pay later’ services in the past year as compared to 43% of women
  • 39% of Millennials have used ‘buy now, pay later’ services in the past year as compared to 34% of Gen Xers and 27% of Gen Zers
  • 43% of Gen Zers have missed their BNPL payments at least once this past year as compared to 31% of Millennials and 26% of Gen Xers
  • 42% of Gen Zers have made purchases of $300 or less this past year as compared to 31% of Millennials and 27% of Gen Xers

So will BNPL encourage people to borrow more can they afford? Will consumers be able to manage BNPL purchases better than credit cards? These are important questions but what consumers appreciate is the streamlined service, potentially lower cost, and ability to buy a product they may not typically purchase due to the relatively high price.



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