The Financial Technology Association (FTA) has posted research on the Buy Now Pay Later (BNPL) sector that highlights the positives of the Fintech service. The survey, created in partnership with the Morning Consult, arrives on the same day that the Senate Banking Committee held a hearing on new Fintech services being provided to consumers.
During the hearing, FTA CEO Penny Lee, testified on behalf of Fintechs providing a positive view of innovative financial services.
According to the “Impact of Buy Now Pay Later” the services have a “positive force on the financial future of its users.”
“Forty- three percent of those have used BNPLs reported that they felt their finances would be better off in one year while only 26% of those who have not used BNPLs reported the same.”
As well, 94% of adults who utilize BNPL state they understand the terms and conditions of using the service.
While largely leveraged by the young, and “non-white adults”, there is a high degree of “favorability” and “trust” in the product.
BNPL may be garnering more utilization as inflation rockets higher and the country deals with a recession driven in part by inflationary policies enacted by Congress and the White House. More than half of the survey respondents indicate they are concerned by the cost of gas and food. Most adults say they are worse off financially than they were one year ago.
The document is available here.
Typically, BNPL services are viewed as an alternative to high-cost credit card debt. Many BNPL offerings allow consumers to pay over time with no additional fees or interest. While originally viewed as a service for durable goods, BNPL offerings are gaining traction in transactions with greater frequency, such as groceries.
