Why Even Financially Worry-Free Consumers Use Buy Now, Pay Later

Financially worry-free consumers — or those with good credit or access to credit — are interested in alternatives to traditional credit card options. They may not face the challenges in securing credit that many consumers who live paycheck to paycheck and struggle to pay bills do, but they are concerned about living within their means.

Buy now, pay later (BNPL) plans serve as a viable payment alternative because they help shoppers pay over time for larger purchases with low or no interest. PYMNTS research found that among financially worry-free consumers who have not had a credit card in the last 12 months, 40% of respondents said they do not use credit cards because they encourage them to spend money.

This is just one of the key findings uncovered in The New Credit Model: Why Financially Worry-Free Consumers Still Want Alternatives To Traditional Credit, a PYMNTS and Sezzle collaboration. We surveyed 7,024 American consumers to learn what is driving the growing interest in flexible payment options such as BNPL among financially worry-free consumers, how they want to make use of BNPL payments and what they hope to gain by using such programs.

More key findings from the study include:

Financially worry-free consumers are interested in BNPL as a payment option when a potential purchase reaches a cost threshold. Consumers familiar with BNPL programs are most likely to be interested in using them to pay for higher priced, one-time retail purchases (47%) and medical expenses (29%). Among financially worry-free consumers, 43% are interested in using BNPL to pay for expensive, one-time retail purchases, and 24% want to use it to pay for medical expenses.

Financially stable consumers find value in BNPL as a way to manage their finances and live within their budgets. PYMNTS data found that 62% of financially worry-free consumers who have used or would use BNPL see it as a way to buy things that they want without overspending. Another 43% of financially secure consumers said they believe it will help them improve their credit scores.

Consumers aware of BNPL are also interested in using it to pay for necessities such as groceries and utilities. PYMNTS research found that 21% of all consumers aware of BNPL would use it to pay for groceries and 18% would use it to pay for monthly utility bills. Fourteen percent of worry-free consumers would use BNPL to pay for groceries and 11% would use it to pay monthly utility bills.

To learn more about why financially worry-free consumers are turning to installment payment plans, download the playbook.