Tools Gives Consumers Access to Credit and Increased Spending Power During COVID
Buy Now Pay Later has grown in popularity during the pandemic and will continue to drive value for merchants for the foreseeable future. In a recent survey Sezzle commissioned with Netfluential Research, consumers shared why BNPL is resonating so strongly in today’s market as both a tool to increase spend and improve financial literacy. The complete research can be downloaded below.
Key Findings Include:
- Increased use of BNPL under COVID: 15% of online shoppers (and 21% of millennials) have increased their use of BNPL. 91% of those predict they will continue to use it in the future. Further, nearly 1 in 3 existing BNPL users have increased their usage in response to COVID.
- BNPL Drives More Purchases and Incremental Spend: Merchants who accept BNPL can expect to see a strong sales lift as a result. 82% of users say BNPL helps make the unaffordable, affordable and 73% spend more with BNPL.
- Financial Education and Credit Improvement: BNPL users are trying to improve and grow their financial position, and this has manifested in proactive behavioral changes, like actively building credit and seeking financial education. Over half of BNPL users want to improve their credit scores, and nearly 40% are interested in financial education and tips on money management.
- Generational Appeal Varies: The potential appeal of BNPL is generational. Younger generations are looking to take control of their finances (through credit building and education), while older generations are recovering from financial mistakes (paying off debt and avoiding interest).
- Alternative to Credit Cards: BNPL provides a responsible alternative for those who can’t get, or don’t want to use, credit cards. It allows users to pay in installments without interest, which resonates strongly for all generations. 46% of users surveyed have been denied credit in the past, and 25% have maxed out credit cards.
- The Buying Power of Social Good: Sezzle’s commitment to social good strongly resonates with 90% of its user base – having a social good initiative encourages greater spend for 80% of its users.
For this survey (BNPL Landscaping Research), Netfluential spoke to 1500 participants, including 386 people who have used any BNPL option, 259 users who have used Sezzle specifically, and 1114 participants who have never used BNPL, but who are open to it. For BNPL users as a whole, trust and convenience are extremely important when choosing a payment method. For Sezzle users, add to this the importance of helping the consumer in the credit building process and offering a strong social mission. Overall, BNPL users are more confident in their ability to reach their financial priorities, and Sezzle users in particular feel most confident about their ability to save money and control their spending.
Source: Netfluential Study of 1,500 US adults who shop online, March 2021 (commissioned by Sezzle)
