The Pay Later Ecosystem Report: Consumers Will Let AI Recommend Pay Later
Our latest report with PYMNTS, “The Pay Later Ecosystem Report”, explores how AI could reshape the Pay Later landscape.
One trend is clear: Consumers want AI in Pay Later, which includes traditional credit cards, card installment plans and buy now, pay later, to function as a savings and protection tool, but only if it operates within boundaries they can set.
A few highlights:
1. Consumers want guidance, not automation
Only 2% of consumers want an algorithm making payment decisions for them. 28% say having approval before purchase is essential.
People aren’t opposed to smart tools, but they are opposed to losing control. They want a recommended path they can confirm or reject without endless options, or decisions made without them.
2. Life stage, not income, drives the decision
A Gen Z shopper building credit and a Gen X shopper managing competing financial priorities can earn the same salary and need completely different things. Income tells you what someone can spend, but life stage tells you what they actually need.
3. Credit score protection is not optional
59% of consumers call credit score protection essential, along with fraud protection and data privacy. A payment solution that puts a customer’s credit score at risk isn’t a trade-off consumers are willing to make.