Survey: Millennials, parents to be top BNPL users this holiday season
Buy now, pay later (BNPL) options are expected to grow in popularity this holiday season.
That’s according to a new study from global payment solution provider Splitit and fintech news outlet Pymnts, which reveals that nearly four-in-10 (38%) consumers plan to use BNPL options when self-gifting this holiday season. More than two-thirds (67%) of parents plan to use these options for their holiday purchases this year, while 43% of consumers surveyed said the availability of BNPL will influence where they shop.
Nearly 40% (38%) of millennials say they intend to use pay later options more frequently during the holiday season than they typically do throughout the year. The new study finds that nearly half (49%) of parents say BNPL plans reduce the guilt of splurge purchases by spreading large expenses out over time. That number increases to 52% for millennials.
[READ MORE: Study: Multiple return options, faster refunds critical to online holiday sales]
"Though we see a strong interest in shoppers buying for themselves using pay later plans this holiday, nearly two-thirds of consumers also plan to use flexible payment options for gifting," said Nandan Sheth, CEO of Splitit. "Millennials and parents, in particular, are leveraging pay later options to justify large purchases and better manage their finances.”
The study found that credit card-linked installments continues to be the most popular pay later option over the last 12 months at 39%, closely followed by traditional BNPL at 38%, with merchant store cards behind at 31%.
More than a quarter (28%) of holiday shoppers say they are highly likely to use BNPL plans this season, and two-thirds of consumers who intend to use them this holiday season plan to use them to buy gifts for others. Additionally, 30% of holiday shoppers expect to use BNPL options more frequently during the holiday season than during the rest of the year.
Additional findings from the survey include the following:
- 20% of consumers are interested in using a BNPL plan this holiday, citing improved financial management as their top reason for financing.
- 62% of consumers would prefer to see a BNPL solution before deciding what to buy, rather than after making the purchase, while 90% of respondents that do not use BNPL plans would be more likely to use them if they were being offered during the purchase journey.
- Clothing and accessories account for almost 60% of BNPL gift purchases this holiday.
For the report, Splitit and Pymnts surveyed 5,248 consumers from Sept. 30 to Oct. 5.
