The Ascent recently updated their buy now, pay later research which revealed BNPL’s recent growth as well as the associated downfalls among its users, especially those in younger generations.
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The Ascent, a Motley Fool service, conducted a survey of 2,000 Americans in July 2020 and issued updated survey results in March 2021 which revealed the following:
The number of buy now, pay later users grew nearly 50% from July 2020.
In 2021, 56% of Americans have used a buy now, pay later service -- a 48% increase from last year. Consumers aged 18 to 24 (Gen Z) represent the largest group of users in 2021, with 61% reporting having used the service -- a 62% increase from last year.
Late payments increased 41% in 2021.
Nearly a third (31%) of BNPL users have made a late payment or incurred late fees, up 41% since last year. Consumers aged 18 to 24 are the most likely to make a late payment, with 47% being late and/or incurring a late fee.
Americans expecting to make a late payment increased 65%.
In 2021, more than one-third (36%) of BNPL users say they are at least somewhat likely to make a late payment within the next year -- up 65% from last year. Gen Z respondents are the most likely to miss a payment with 44% saying they are "somewhat" or "very" likely to do this in the next 12 months.
More than 1 in 4 BNPL users don't consider BNPL to be a form of debt.
28% of all BNPL users don’t consider buy now, pay later to be a form of debt. That percentage increases to 40% when asking Gen Z respondents.
The full comparison of BNPL data from 2020 to 2021, along with additional insights into why consumers use BNPL, and the companies charging the highest interest rates/late fees can be found at https://www.fool.com/.
