Data Snacks, Member Exclusive

Data snack: The rise of BNPL and what consumers want from installment pay options

  • The BNPL industry continues to gain momentum, but what will it look like as a mainstream form of payment?
  • A recent survey from SplitIt sheds some light on the topic, from BNPL’s relation to credit cards, to demand for flexible installment plans.

Email a Friend

Data snack: The rise of BNPL and what consumers want from installment pay options

BNPL is kind of like a baby: you can see that it’s growing, but you can’t quite yet figure out what it will look like when it’s all grown up.

Installment payments continue to grow in popularity among consumers. But the shape this payment method will take in consumers’ lives is still questionable, according to a recent survey by BNPL company SplitIt.

One data point is that 60% of consumers say they would use their credit cards more if they could pay in smaller interest-free installments. 

But that’s not to say consumers are poo-pooing credit cards. 83% are happy with their credit cards and 71% see them as a healthy part of their financial lives.

Credit card perks, for example, are still important to consumers. 83% describe things like cashback, points, and miles as very important to them, while 48% even go as far as to say it’s the reason they use their credit cards in the first place.

“Many of our peers are putting the nail in the coffin for credit cards, but the data shows this is not entirely the case,” said Adam Mawdesley, chief revenue officer at SplitIt.

Another point the survey emphasizes is the level of consumer interest in BNPL. Lots of shoppers don’t just see this payment method as a perk, but rather a viable reason for paying more. 60% of consumers are willing to either upgrade or increase their payments to be able to pay over time.

Then there’s the case of how consumers want their installment plans to look like.

The higher the cost of a purchase, the more installments consumers want, it seems:

  • For purchases under $300, 60% don’t mind a max of four payments
  • For purchases over $500, 66% prefer +4 payments
  • For purchases over $1000, 75% prefer +4 payments

According to Mawdesley, the findings ultimately point to a demand for personalization within the BNPL space.

“The key takeaway for us is validating that all Buy Now, Pay Laters are not created equal. Merchants and shoppers have a wide range of needs that just aren’t addressed with a ‘one size fits all’ approach,” he said. “Not all consumers want a new line of credit and they want more flexibility in how and when they pay.”

0 comments on “Data snack: The rise of BNPL and what consumers want from installment pay options”

10-Q, Member Exclusive

Who will succeed James Gorman at Morgan Stanley?

  • Morgan Stanley's James Gorman is calling it a day. “No plans to go out like Logan Roy,” the fictional CEO from HBO’s Succession, he says.
  • Wise shares dropped nearly 7% Thursday after the firm announced this week that its CFO, Matt Briers will be stepping down in March 2024.
Sara Khairi | May 30, 2023
10-Q, Member Exclusive

Guilty or not guilty: Deutsche Bank is ready to pay $75 million in Epstein settlement

  • Deutsche Bank hasn’t come clean about its involvement with the Epstein crime. However, the bank addressed the situation by saying that it has strengthened and invested in its anti-financial crime controls.
  • Upstart is up almost 80% in 2023 so far. The news of multiple funding agreements being worked on by the company rebounded the stock nearly 47% in a week.
Sara Khairi | May 22, 2023
Banking, Lending, Member Exclusive

Unlicensed lending, misleading practices, and legal actions: Is SoLo Funds in trouble?

  • Attorney General for the District of Columbia and the California DFPI have penalized SoLo Funds for breaching a number of consumer protection laws.
  • The DFPI also issued a consent order for the Black-owned firm, which is raising eyebrows and more questions.
Sara Khairi | May 17, 2023
10-Q, Member Exclusive

Robinhood’s losses override revenue, PayPal’s stock dips, while Dave delivers more than expected in Q1

  • Everything investors need to know about Robinhood, PayPal, and Dave’s Q1 2023 earnings.
  • Some important fintech stocks are on the path to recovery, while others crashed on Q1 earnings.
Sara Khairi | May 15, 2023
10-Q, Member Exclusive

PacWest nearing collapse comes hard on the heels of the First Republic crash

  • The bank crisis is nowhere near the end -- what's next for First Republic, PacWest, and bank stocks at large?
  • MoneyLion stock has gained 34% in the past week ahead of its upcoming Q1 2023 financial results.
Sara Khairi | May 08, 2023
More Articles