Buy Now Pay Later: 74% of Customers Say they Have Missed BNPL Payments
Almost all of us can appreciate the value of having more time and money. However, if we had to choose one or the other, most would pick time over money. A new trend called “Buy Now Pay Later” (BNPL) is gaining popularity among retailers and consumers alike. BNPL is a good way to help customers purchase products or services that they don’t have the funds for at this moment in time.
74 Percent of Customers Have Delayed their BNPL payments
However, studies show new challenges in BNPL. Recent research found 14 percent of BNPL users have delayed/missed one payment while 12 percent have failed to pay more than once. The study by Piplsay, a customer research agency, found most customers —74%—were not able to pay their BPNL payments on time.
Piplsay held the study between Sept. 28 and 30 in the form of a web-based survey. Of the 30,880 responses collected, 43% of Gen Z failed to pay at least once a year. This figure is higher compared to the 31% of Millennials and 26% of Gen X buyers.
Nevertheless, it seems like customers are still determined to use this payment method as new enablers come on board. For instance, Zilch Technology Limited is one of the newest players in the US.
More findings from the Piplsay research found 41 percent of the respondents had shopped through Buy Now Pay Later in the past year. Of those who’ve used the method, 52 percent had a ticket value of $400 or less. Meanwhile, 27 percent bought goods exceeding $500.
Who are the Primary Drivers behind BNPL?
A different study by StitcherAds reveals that younger shoppers are the driving force behind BNPL purchases in ads posted on social platforms like Facebook, Instagram, Snapchat, etc.
- 60 percent of the Millenials interviewed in the study admitted to having bought products through the BNPL option in ads on social platforms.
- Fifty-seven percent of Gen Z shoppers admitted they had.
- Only 37 percent of Gen X shoppers had used this approach, and
- A meager 19 percent of Baby Boomers
StitcherAds gathered this data from 500 US shoppers aged 18 to 65 years.
The Bottom Line
In a world where people are constantly looking for ways to make their lives easier, BNPL is an effective way to do so. Still, the method has its challenges and proponents must find new ways to remedy them.
Author Bio: Content crafter Alex Wilmont has been active in the payments industry for over 15 years. He lives simply, gives generously, and loves his 2 dogs. His mission is to enhance and innovate the fintech industry for years to come through groundbreaking solutions like Pinwheel Pay.