Around 45% of consumers used payment plans to pay off credit cards in the last year, according to a new report from PYMNTS.
10/04/2023 2:15 P.M.
1.5 minute read
Installment plans, including Buy Now, Pay Later (BNPL), are preferred by a whopping 60% of shoppers across age groups and income brackets. A new report from PYMNTS found that around 45% of consumers used payment plans to pay off credit cards in the last year. While “convenience” was one of the top reasons why consumers used installment plans, 40% of Millennials who chose installment plans say they did so to improve their credit score.
The findings from PYMNTS, partnering with Splitit, draw on insights from a survey of 2,572 U.S. consumers conducted from Aug. 8-12, 2023, as well as analysis of other economic data.
Key findings from the report include:
- “Seventy-two percent of Millennials have used an installment plan in the last year.
- Sixty-four percent of consumers who used installment plans in the last year earn more than $100,000.
- Forty-two percent of consumers who used a BNPL plan earned more than $100,000.
- Seventy-four percent of installment plan users said they pay this way because it helps them manage spending. This was by far the most cited reason, with convenience following at 57%. Surprisingly, just 24% of installment plan users named the inability to afford the purchase otherwise as a reason.
- Forty percent of installment plan users used a plan for clothing or accessories.
- Sixty-six percent of consumers said they want merchants to introduce installment plan options before the checkout process begins.
- However, just 23% favored reviewing plan options during checkout, and 11% preferred doing so after making the purchase.”
Read more findings from the report here.
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