53% of BNPL Users Point to Trust as Critical Factor 

While the pandemic contributed in part to the surge in buy now pay later (BNPL) services, an ongoing shift in consumer spending habits, combined with sweeping eCommerce adoption, has ensured the short-term interest-free installment plans are here to stay. 

More than half of consumers in the U.S. are interested in using the popular installment service, and of those who are already fans, 65% are using it more now than they did a year ago. Trust is a factor, however, with 53% of BNPL consumers indicating that borrowing from credible lenders is important. 

These are just a few of the results in BNPL, Banks And The Trust Factor: Consumer Trust Offers Banks A Competitive Edge In A Growing Market, a PYMNTS and Amount collaboration. The report suggested that banks are in a unique position to seize a sizeable percentage of the fast-growing BNPL market.

With consumers desiring a trust factor in their short-term lenders, banks can step in and capitalize on the many long-standing relationships they already have with their customers. Trust is an area where most banks rank highly. Leveraging that faith can help banks gain a BNPL foothold for the long term.

Banks that extend BNPL options are not only jumping into a growing, popular market segment; they’re also offering a service that is especially popular among younger and high-income demographics. In fact, of the millennials who have used BNPL services, 75% have increased their usage over the past year.

Among consumers who have expressed interest in BNPL services, 52% indicated that they valued the ease of use and the general convenience most of all. BNPL users also said they wanted the capacity to track and manage their spending. These preferences offer banks a roadmap to follow when launching BNPL plans that will most likely be embraced. 

To learn more about banks’ opportunity to grab a share of the BNPL market, download the report here.