NEW YORK, N.Y.–More than one-third of Americans are utilizing buy now, pay later (BNPL) financing solutions, and counter to the perception, the majority of those users have high incomes, according to a new survey.
The survey findings were released by Klarna in conjunction with its announcement of a new initiative it said brings unparalleled transparency to the lending process.
The Harris Poll, which was commissioned by Klarna, found 69% of users have a household income of $75,000 or higher, and households with incomes ranging from $75,000 to $99,000 are more inclined to use BNPL services.
Gen Z and Millennials show higher adoption rates of BNPL compared to Gen X and Baby Boomers, according to the survey.
The Findings
Among the findings:
- Reasons for Embracing BNPL. Among BNPL users, one-third (33%) utilize these services, with 11% using them weekly or more often, and 3% using them daily.
- Credit Card Usage and Payments. Two-fifths of respondents do not pay off their credit cards in full each month, “indicating widespread credit card debt even among affluent households,” according to Klarna. “Across generations, a significant portion carries credit card debt and pays late fees, with Gen Z and Millennials showing higher rates compared to older generations.”
- Understanding Credit Card Bills. The survey found 13% of card users admit they are unclear on all the different payment amounts listed on their credit card bill and how they accrue interest.
- Frequency of Credit Card Usage. The survey found 83% use credit cards, with 55% using them weekly or more frequently, and around 13% using them daily. Gen Z is the least likely to report using credit cards weekly or more frequently compared to older generations.
Wikipink is Announced
In conjunction with the release of the survey. Klarna announced what it said is an “industry first,” the launch of a new online initiative - Wikipink.
The company said Wikipink is designed to set “new standards for transparency and responsibility in the credit and lending industry.”
“Amid growing scrutiny over the practices of credit providers and increasing credit card debt in the U.S., Klarna steps forward to challenge the status quo by revealing comprehensive data on its services, including repayment rates, late fee rates, and consumer age demographics, highlighting its commitment to fair and sustainable credit solutions,” the company said.
Full information in Wikipink can be found here.
Daily News Headlines. To Your Inbox. Every Day. And It’s Free
The biggest, best and freshest news reporting in credit unions remains free, and now has an added bonus---free shipping to your email address! That’s right. Each morning CUToday.info delivers its daily Fresh Today news update offering the latest headlines and breaking news right to your email, with the easy-to-read headlines format allowing you to click on the stories that interest you most in order to learn more. So stop paying those bank-fee-like subscription prices from other so-called “news” publications!
If you haven’t yet signed up for the new email solution on which CUToday.info has partnered with ResponseGenius, you can do so here. Signing up requires less than one minute of your time—and it’s free!
Please note that after signing up you may need to go to your Spam/Junk folder and mark the morning headlines email as safe. CUToday.info does not provide its list of readers and emails to outside parties, and we will not be contacting you to sell you an extended warranty or sending you any links so you may cash in on an inheritance.