People using buy now, pay later (BNPL) are favoring these options and incorporating them into their financial choices. This growing trend has led BNPL providers to discover unexpected success in categories they may not have initially anticipated, creating new avenues for revenue in the process.
According to “Tracking the Digital Payments Takeover: What BNPL Needs to Win Wider Adoption,” a PYMNTS and AWS collaboration, three-quarters of BNPL users are very or extremely satisfied with their BNPL options. This satisfaction trend is pretty much the same no matter which BNPL provider you go with.
Examining the details of consumer preferences and utility in BNPL, it appears that people with lower incomes and those in younger age groups are less inclined to be highly satisfied with their BNPL choices. Specifically, 56% of Generation Z consumers and 60% of those earning less than $50,000 annually express high satisfaction with their BNPL options. These percentages are notably lower than the satisfaction rates of 76% among millennials and 83% among consumers earning more than $100,000 annually.
PYMNTS research also shows that 53% of consumers have increased their use of deferred payment installment plans compared to a year ago. This increase is especially seen among those satisfied with their BNPL options. Specifically, 61% of highly satisfied consumers reported using BNPL more, while only 47% of those who were somewhat satisfied or less did the same.
Interestingly, PYMNTS data also indicates that there’s not much difference in satisfaction levels across various BNPL providers. This suggests that BNPL providers can stand out by giving users what they want, like offering rewards.
This trend has led BNPL players to expand their services to assist consumers in paying for a wide array of items, including alcoholic beverages.
In response to shifting consumer budgets and changing purchasing habits in the alcoholic beverage sector, beer, wine and spirits giant Constellation Brands, has observed customers making more frequent but smaller purchases.
“We’re seeing more trips, but somewhat less purchasing per trip than we used to see, which simply means people are being a little more careful about what they do, given the inflationary environment that exists,” Constellation Brands Chief Financial Officer Garth Hankinson told analysts in October.
The increasing popularity of BNPL in the alcoholic beverage sector means consumers now enjoy greater financial flexibility when purchasing their preferred drinks.
According to a recent report by PYMNTS, Klarna, a buy now, pay later (BNPL) company, is entering the subscription commerce industry.
Last week, the Swedish FinTech company unveiled Klarna Plus, a subscription program priced at $7.99 per month. This initiative allows U.S. customers to bypass service fees, accrue rewards points, and enjoy discounts from brands such as Nike, Macy’s, and Instacart.
“Our research indicates that dedicated Klarna users are looking for an enhanced shopping experience through a subscription model,” said Chief Marketing Officer David Sandstrom. “Klarna Plus addresses this demand, allowing us to deepen our engagement with 37 million loyal U.S. consumers, while also further diversifying a portfolio of payment and shopping solutions.”
The company aims to tap into the global subscription commerce market, predicted to be worth $2.4 trillion by 2028. CEO Sebastian Siemiatkowski mentioned on Jan. 23 that the United States, where Klarna is most prominent, is being looked at for a possible initial public offering (IPO).