Buy now, pay later – you may have seen that option while checking out online. PayPal, Klarna, Affirm are some financial tech companies encouraging consumers to pay off their purchases that way with installments, often free of interest. That sets them apart from credit card companies, but now Mastercard wants in too.
Buy now, pay later is popping up in unlikely places, said Sheridan Trent, a research analyst with the Strawhecker Group.
“I took my dog to the vet a couple of weeks ago. And besides sitting in the waiting room, I noticed that they have a buy now pay later option if you couldn’t afford your treatment, you can pay it off in four installments,” she said.
Credit card companies and banks see an opportunity to attract younger, maybe debt-averse consumers, said Ted Rossman, an analyst with CreditCards.com.
“I think some of it is rooted in the fact that so many young adults have student loans, and they’re worried about more debt,” he said.
New research from The Strawhecker Group analyzes key trends and consumer attitudes.
Download a free infographic covering several findings from the full report.
Consumers have increasingly adopted Buy Now, Pay Later (BNPL) services for multiple reasons; a desire for financial flexibility, a way to avoid incurring credit card debt, or to purchase items outside of their budgets. However, despite its popularity, consumer debt and missed payments have led to calls for additional research and regulation. Read the press release.
To take a closer look, The Strawhecker Group (TSG) conducted a survey of over 1,500 U.S. consumers in early 2021 with the goal of understanding domestic attitudes and perspectives on the use of BNPL services. The complete findings, a selection of BNPL provider profiles, and market landscape details can be found in the firm’s new report Buy Now, Pay Later: An Analysis of Key Trends and Consumer Attitudes.
Highlights of this extensive 81-page report include:
- Buy Now, Pay Later Background
- Key Players in the Buy Now, Pay Later Space
- Buy Now, Pay Later Consumer Survey
- Concluding Thoughts: The Future of Buy Now, Pay Later