NEW YORK—The emerging popularity of buy now, pay later (BNPL) payments does not seem to be dampening enthusiasm among credit card-holders, even though some analysts have suggested BNPL is affecting card volume.
According to a recent survey of 2,000 credit card-holders from credit-card-based installment payment solution provider Splitit, while 60% of respondents would prefer to use a BNPL option with existing credit cards vs. opening new lines of credit, 64% anticipate their credit card spending to be the same or more than they did in 2021.
The survey, “U.S. Consumer Perspectives: Credit Cards and Buy Now Pay Later,” found most respondents (56%) would prefer to make installment payments monthly instead of every two weeks (25%). The number increases the larger the purchase amount, with 70% preferring monthly payments on purchases of $500 or more, Chain Store Age stated in its analysis.
Results also indicate consumers clearly prefer options in the number of payment installments. While 60% of those surveyed are fine with four or fewer payments for purchases under $300, 66% favor more than four payments for a $500 purchase, and 75% want more than four on purchases of $1,000 or higher.
Additional Findings
As shoppers think ahead to making larger purchases and considering using a BNPL or installment plan on purchases over $1,000 in the year ahead, several categories stand out to make gains, according to the analysis. For example, nearly two-thirds of respondents would make purchases on home improvement (66%) or home furnishings (63%), Chain Store Age noted.
Beyond the home, other top categories are healthcare expenses not covered by insurance (62%), automotive accessories and repair (61%), travel (56%) and jewelry (51%), the survey further found.
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