Survey by LendingTree of 1,040 Americans found:
1/3 of consumers have used BNPL! Among those who’ve made a purchase with buy now, pay later, 62% have done so five or more times and 81% said they’re likely to use it again. Amazing stats!
2/3 of shoppers who have used BNPL said they typically buy more than they would if they had to pay for everything upfront, and 47% said they wouldn’t have made their full purchase if they didn’t have the option to finance.
1/3 of consumers utilizes buy now, pay later financing to purchase things they normally wouldn’t be able to afford. Many used BNPL for discretionary purchases like clothing and shoes. Designer purchases are popular, as 69% who’ve used buy now, pay later financing did so to buy a designer item — a third of these shoppers have done this multiple times.
7/10 consumers who have used BNPL financing were charged fees or interest for missed payments. Late fees and interest charges are the norm for shoppers. Nearly a third of shoppers didn’t know what the interest rate and fees would be before agreeing to finance their purchase.
Young shoppers frequently use BNPL agreements to finance purchases. They’re much more popular among Gen Zers (59%) and millennials (47%) than they are with Gen Xers (28%) and baby boomers (9%). Young shoppers are also less likely to consider buy now, pay later to be a form of debt.