Pay later plans are transforming how consumers manage their spending and how merchants engage with their customers. And there is a consistent theme: Adoption of installment options boosts consumer satisfaction and merchant sales.
For consumers, pay later plans offer flexibility and financial relief. More than 56% of consumers used installment payment options in the last year. PYMNTS finds that consumers are happy with these plans, with 76% of buy now, pay later (BNPL) users reporting high levels of satisfaction. These plans help consumers pay for essentials and large purchases alike.
Pay later plans often serve as a financial lifeline for individuals living paycheck to paycheck and struggling to pay bills. These consumers are four times more likely to use card installment plans than non-paycheck-to-paycheck consumers. High-income consumers living paycheck to paycheck are the most likely to plan to use these installment options in the next year.
For merchants, pay later plans drive spending and loyalty. Consumers spend 25% more on average when using general-purpose credit card installment plans compared to BNPL. Merchants who prioritize pre-checkout visibility for installment options see greater consumer engagement and conversion rates.
Download the eBook here.
This eBook examines the role of pay later options in modern commerce. Ten data-rich charts provide actionable insights into adoption patterns, satisfaction rates and spending behaviors. Uncover the strategic opportunities these plans offer merchants.
“10 Impact Statements – Pay Later Report” is a PYMNTS Intelligence original eBook based on surveys of over 5,000 U.S. consumers conducted between February 2024 and October 2024. This eBook explores the transformative role of pay later plans in consumer spending, satisfaction and merchant engagement, highlighting key trends and actionable insights for the year ahead.
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