NEW YORK—Consumers’ reasons for seeking out buy now, pay later (BNPL) plans for recent holiday purchases varied, a new study reveals.
Forty-two percent of those interested in the relatively new BNPL offerings said that doing so would allow them to treat a loved one to gifts that would otherwise be out of reach. Another 33% said they were facing pandemic-related financial uncertainty and appreciated the flexibility of BNPL, though they expected their outlooks to improve in the new year, according to a report from Pymnts.com.
Consumers have grown increasingly interested in BNPL plans in the past 21 months, but the 2021 holiday shopping season pushed the level of interest to new heights—21% of adults planned to use BNPL options to make purchases during the holidays, with interest especially high among Millennials and those earning more than $100,000 annually.
Businesses that offer these spending plans can also see significant boosts, as consumers who use BNPL report spending 30% more on their purchases than those who lack access to them, Pymnts.com said.