Redefining Retail: Consumer Finance Trends Driving the Evolution of Pay Later Plans
Understanding consumer preferences is paramount at Splitit. Today, I’m excited to unveil groundbreaking insights from our latest study, conducted in collaboration with PYMNTS Intelligence, “Redefining Retail: Consumer Finance Trends Driving the Evolution of Installment Plans”.
Our findings spotlight a dynamic shift in the marketplace: a remarkable two-thirds of consumers currently using installment plans are ready to switch their loyalty to merchants that offer installment options tied directly to their existing credit cards at checkout. This shift is not just a trend—it’s a potential game-changer for businesses keen on boosting customer retention and conversion rates.
Moreover, our research has uncovered a significant knowledge gap regarding traditional Buy Now, Pay Later (BNPL) services. Alarmingly, one-third of consumers do not realize that BNPL agreements are effectively new loans, potentially affecting their credit scores. In today’s economic climate, where inflation and rising interest rates are putting considerable pressure on household budgets, this is a cause for concern.
Our survey of 2,655 consumers found that Gen Z is the most likely generation to pick a merchant to access a plan, and our 39-page report with seven charts further details how their usage has bucked overall spend trends.
Read more in “Redefining Retail: Consumer Finance Trends Driving the Evolution of Pay Later Plans,” a PYMNTS Intelligence and Splitit collaboration.
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