Native Digital Consumers & BNPL

Advanced by Millennials and Gen Zs,  BNPL has become a mainstream option at online check out. PYMNTS study of Gen Z consumers ages 22 – 33 were over 18% credit invisible and 20% poor credit.  We see that over 50% of all consumers have used BNPL services as an alternative at checkout:

Key findings

  • 55.8% of consumers have used a buy now, pay later service, up from 37.65% in July of 2020 — an increase of almost 50% in less than one year.
  • Buy now, pay later usage growth was largest in the 18 to 24 (62% growth) and 55+ (98% growth) age groups between July 2020 and March 2021.
  • 53% of respondents who have never used BNPL say they’re at least somewhat likely to use it within the next year.
  • Among buy now, pay later users who have used the service more since the pandemic started, 41% say they’ve done so to conserve cash in case of an emergency, while 25% say it’s because they lost income.
  • 31% of buy now, pay later users have made a late payment or incurred a late fee. 36% of BNPL users say they are at least somewhat likely to make a late payment within the next year.
  • 62% of buy now, pay later users think BNPL could replace their credit cards, though only about a quarter want that to happen.
  • PayPal’s buy now, pay later services are the most commonly used among providers, with 43% of users saying they’ve used the brand’s BNPL options.
  • The most common reason to use buy now, pay later services is to make purchases that don’t fit in one’s budget — 45% of respondents have used it for this reason.
  • Buying electronics is the most common use of buy now, pay later, with 48% of users saying they’ve used it for that reason.
  • 36% of buy now, pay later users use BNPL once a month or more.
  • Buy now, pay later users aged 18 to 24 are the most likely to pay $250 or more per month when they have a BNPL payment.
  • Americans understand BNPL significantly better than they did last year, with a nearly 50% increase in the number of people who say they understand it at least somewhat well.
  • 61% of buy now, pay later users would rather use a BNPL service offered directly from the retailer they’re buying from than going through a third party.