Forty-one percent of consumers plan to use BNPL installment plans extensively during the coming holiday season, according to PYMNTS.
10/16/2023 2:50 P.M.
1 minute read
As we gear up for the busy months ahead, many consumers are predicting they will turn to installment plans, including Buy Now, Pay Later (BNPL), to help offset the pricey cost of holiday spending.
A new study from PYMNTS found that 41% of consumers plan to use BNPL plans extensively in the coming months. This shift is not exclusive to a particular age group; however, the younger generations, particularly Gen Z and Millennials, are leading the charge, with over half of them planning to rely on installment plans more heavily this holiday season.
Other key findings from the study include:
- More than three-quarters of shoppers planning to use installment plans more heavily this holiday season cite better spending management as the primary reason.
- Fifty-six percent of respondents who expect to use installment plans more during the holidays have already used this type of installment plan in the last year.
- Three-quarters of holiday shoppers say they will likely switch to merchants that provide an installment option using their existing credit cards.
- Clothing and accessories are the top type of purchase consumers will use installment plans for during the holiday season.
The results of these findings are based on a representative survey of over 2,572 respondents conducted from Aug. 8-14, 2023. The sample group was 51.1% female, with an average age of 47.3. Thirty-four percent of the sample held a college degree, and 39% annually earned more than $100,000.
Read more findings from the survey here.
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