Buy Now Pay Later Statistics: Understanding the Trend Sebastian, 28 June 2023 The Rise of Buy Now Pay Later Services Due to the emergence of Buy Now Pay Later (BNPL) services, the way we shop has drastically changed. There has been an increased demand for this payment option as customers are looking for a more flexible way to pay for their purchases. BNPL services enable customers to split payments into smaller, interest-free payments, making it more affordable to buy items they may not have been able to afford upfront. Current BNPL usage statistics According to a survey conducted by Finder, an estimated 45% of US adults have used a BNPL service at least once, and this number is expected to grow in the coming years. Moreover, consumers are also using these services more frequently; Statista stated that the number of BNPL transactions is expected to hit $995 billion by 2026. Reasons for the growth in BNPL usage The widespread adoption of BNPL services can be attributed to the following reasons: Convenience and flexibility: BNPL services offer the convenience of paying in installments, allowing customers to better manage their finances and stick to their budgets. This also provides them with the flexibility of being able to make purchases they may not have been able to afford otherwise. Lower financial pressure: Customers prefer BNPL services as they don’t have to worry about high-interest rates and any hidden fees. They can repay the total amount in smaller installments over a longer period. Demographics using BNPL services The demand for BNPL services has been a trend for a while now and it is gaining popularity among all age groups. The following statistics show who is frequently using BNPL services: Millennials & Gen Z: These demographic groups have far higher usage rates than older generations. According to Finder, 55% of millennials and 60% of Gen Z have used BNPL services at least once. Women: Women are also more likely to use BNPL services than men, according to a survey by Credit Karma. Nearly 70% of women surveyed have used a BNPL service compared to 56% of men. Industry-specific BNPL statistics BNPL services have been adopted across multiple industries. Some of the most popular include: Fashion and Apparel: Data from Retail Week suggests that the fashion industry sees the highest number of BNPL transactions, accounting for 32% of all payments. Online shopping: BNPL services have become a popular payment method for online shoppers, with GlobalData predicting that BNPL transactions in the US will account for 10% of all e-commerce payments by 2025. Travel: A survey by Finder found that 40% of people booking travel have used a BNPL service to pay for their trips. Concerns with BNPL services While BNPL services have become popular among consumers across all industries, some critics have raised concerns about this payment option. One of the biggest concerns is the potential harm it may cause to a person’s credit score, particularly if they miss a payment. Besides, evidence highlighted by Citizens Advice Bureau indicates that BNPL services have a higher potential to contribute to consumer debt issues. Conclusion BNPL services certainly have a place in modern payment methods. From the convenience and flexibility it offers to a broader range of customers to its industry-wide adoption, it is clear that BNPL services are an attractive option for customers. However, as with any financial product, customers need to be sure they understand the risks involved. This blog post highlights the importance of consumers understanding the potential risks of BNPL services but also underlines the benefits of using the service. Internet