BNPL: An Alternative to Traditional Payment Methods

Updated on

Recent studies have shown that Americans prefer buy now, pay later (BNPL) methods of payment as opposed to traditional ones, specifically for dental and veterinary care. In 2022, reports show that 2 in 3 Americans are more interested in BNPL than they were prior to the pandemic, and many are worried about making payments. Nearly 75% of those surveyed between ages 43 and 57 are worried about healthcare costs, 69% of Americans fear that they won’t be able to afford their own future healthcare costs, and nearly 66% of pet parents worry about affording future vet costs of their furry friends. Currently, 2 in 3 Americans are familiar with BNPL as an alternative to credit, debit, or cash methods of payment.

Get The Full Henry Singleton Series in PDF

Get the entire 4-part series on Henry Singleton in PDF. Save it to your desktop, read it on your tablet, or email to your colleagues

Q1 2022 hedge fund letters, conferences and more

BNPL's Flexibility

BNPL offers plenty of flexibility. 78% of pet owners report feeling successful at sticking to a budget, however, even successful budgeters can benefit from this alternative payment option. Studies show that nearly 80% of pet owners are familiar with BNPL, and more than half have used it already to make purchases for their animals. There are many benefits to using BNPL for one's pets, including but not limited to payment flexibility, avoiding fees and interest, and fair and fixed rates. In regard to healthcare, similar perks exist for BNPL users. Healthcare bills take time to pay off, and only 32% of people are able to immediately pay off those costs in full. Therefore, many people use this method of payment instead of the traditional use of credit or debit cards.

Many people nationwide are interested in BNPL methods of payment. Reports show that 42% of users are located on the west coast, while 55% are on the east coast and are more likely to use BNPL than their western counterparts. Studies also show that millennials’ interest in BNPL has skyrocketed more than any other age group during the pandemic. In fact, 71% of Americans who visited the dentist frequently would use BNPL as their first option, and 86% of pet owners would use BNPL as their first choice to pay for future vet costs. Although the technology is new, buy now, pay later services are the future of payment, whether it be at the dentist office, at one’s doctor’s appointment, one’s dog getting a regular check up, or anything in between. BNPL technology makes financial stability and literacy easier than ever before for Americans nationwide, and eventually, the entire world.

buy now pay later

Infographic source: Opy.com