51% were male and 49% were female with an average age of 37. Methodologyįor this report, we surveyed 2,005 self-reporting online consumers via Amazon’s Mechanical Turk survey platform from March 25 to April 12, 2021. As consumer shopping habits continue to evolve, it will be interesting to see how big of a disruptor Buy Now, Pay Later services become. So, it’s clear brands understand the benefits of offering alternative payment options for their customers. Conclusionīrands such as Target, Wayfair, Lululemon and Urban Outfitters have incorporated Buy Now, Pay Later options. The top reasons users prefer Buy Now, Pay Later services over credit cards are that it’s easier to make payments (45%), and there’s more flexibility compared to credit cards (44%) the services offer little or no interest (36%) and the approval process is easy (33%). How popular will these services become? According to 38% of users, Buy Now, Pay Later services will eventually replace their credit cards, and more than half (56%) say they prefer Buy Now, Pay Later compared to using credit cards for purchases.
Therefore, it’s not surprising that both users and non-users alike think that using these types of services are financially risky (roughly two-thirds of users and non-users). Obviously, when consumers buy an item outside of their budget this can lead to missing payments about half say they are currently behind on a payment, and almost the same proportion say they are likely to make a late payment within the next 12 months. It is interesting to note that more than half (57%) of users say they have regretted making a purchase through Buy Now, Pay Later because the item was too expensive. Overall, people say that their total debt owed on average is $883. Among users surveyed, the average number of items users say they are currently paying for in installments is 3.8. Typically, Buy Now, Pay Later services give users the option to pay installments on a weekly, bi-weekly or monthly basis. How Often Do Consumers Use Buy Now, Pay Later Services?Īmong Buy Now, Pay Later users, 45% use the service frequently (at least once a month or more) and when shopping online almost half (47%), say they use it “most of the time” or every time they shop for an item. There are even services like this for travel-related purchases, like Uplift, which can be used to purchase flights, cruises and vacation packages.Īccording to respondents, PayPal Credit leads the way as the most popular service among users (57%), with other services trailing behind: Afterpay (29%), Affirm (28%), Klarna (23%) and ZipPay (19%). When it comes to Buy Now, Pay Later services, consumers have a variety of options to choose from including PayPal Credit, Afterpay, Affirm and Klarna. What Are the Most Popular Buy Now, Pay Later Services? In fact, 51% of consumers say they used Buy Now, Pay Later services during the pandemic.Ĭlothing and electronics lead the way as the most common types of purchases at over 40% each, followed by furniture (32%), appliances (29%), housewares (23%), and cosmetics (22%). In fact, roughly two-thirds (67%) say “more than half” of their shopping was done online during the last year.Īlong with consumers spending more time shopping online during the pandemic, many have also been using Buy Now, Pay Later to make these online purchases. Overall, 71% of consumers surveyed say that during the pandemic, they have been making more online purchases. Online Shopping During COVID-19 With Buy Now, Pay Later We recently surveyed consumers across the country to get insight into their experiences and types of purchases they’ve made through these types of services. With consumers spending more time shopping online at home during the COVID-19 pandemic, we were interested in seeing how many have used Buy Now, Pay Later services. Of those, nearly half (46%) are currently making a payment or payments through one of those services. According to respondents, 60% say they have used a Buy Now, Pay Later service. These services such as Affirm, Afterpay, Klarna and PayPal Credit allow consumers to make interest-free installment payments on a purchase over the course of several weeks. When it comes to financing options, consumers now have alternatives to credit cards in the form of “Buy Now, Pay Later” services. Buy Now, Pay Later Statistics and User Habits
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