NEW YORK—As consumers look to do more with inflation-stretched budgets during the holidays, more will turn to buy now, pay later (BNPL), a new study suggests.
For credit unions, the issue of BNPL usage is important as it represents both lost interchange income on card transactions and potentially lost lending opportunities.
The findings from Bluedot come at a time when the CFPB is taking a hard look at BNPL as consumers begin to use the service for everyday needs, such as haircuts and groceries, as CUToday.info has reported.
A survey of 1,000 shoppers from the customer service technology firm Bluedot found that four in 10 respondents said they plan to pay for their holiday purchases with buy now, pay later services, Retail Drive reported.
The survey further found almost half (48%) of Gen Z respondents said they planned to use BNPL services this holiday season, followed by Millennials (47%), Gen X (40%) and Baby Boomers (14%).
Nineteen percent said they are using BNPL services because they’re low on cash, Retail Drive noted in its analysis.
Shopping Via Mobile
Eighty percent of respondents said they plan to shop via retailer mobile apps the same amount or more during the 2022 holiday season than last year. More than half (55%) of respondents said they plan to use retailers’ mobile apps because they are easy to use, while 38% say they are looking for discounts.