Only 16% of BNPL consumers living beyond the means

According to a new survey, of the 77% who chose to buy now and pay later, only 16% said they could live beyond their means.

The majority of UK consumers want more BNPL options

Britain’s leading research Buy now and pay after The (BNPL) platform and the first BNPL travel agency, Butter, have revealed that the majority of UK consumers want more widespread options to spread their purchase costs.

BNPL allows consumers to purchase products at a later date while deferring payment. In most cases, they will be repaid in monthly installments. In the case of butter, these repayments are interest-free and consumers have the option of distributing them in installments of up to 10 months as needed.

The advent of the BNPL sector has improved the ability to disperse the cost of things, which has long been a consumer practice that includes council taxes, automobiles, tuition, furniture and more.

BNPL growing in the e-commerce world

According to the latest industry analysis by Butter, the industry now accounts for 2.1% of all e-commerce transactions, up from 0.6% since 2016.

The strongest foothold in this sector is in Sweden, home of industry giant Klarna, which accounted for 23% of all e-commerce purchases in 2020, up 11% from 2016.

Currently the 10th largest for the UK BNPL industry Globally, it increased from just 1% in 2016 to 5% in 2020.

However, a recent campaign by Claro claims that the BNPL model encourages many adults to live beyond their means. Claims that look misguided.

According to a butter survey, 77% of us choose to spread the purchase cost. That is, 40% sometimes, 23% almost, and 14% always.

In addition, 80% believe that the ability to spread purchase costs should be more widely available. This underscores the consumer’s desire for the BNPL model.

Only 16% of consumers struggling with BNPL finance

Perhaps most notably, butter research shows that only 16% of consumers believe that if they can spread their purchase costs, they can live beyond their own means. The majority (58%) say they have better control over their immediate finances.

Timothy Davis, co-founder and chief executive officer of Butter, commented:

“It’s a shame to see some of the financial sector choose to express concern about the growth of the BNPL sector through a rather misleading’investigation’based and disrespectful slander campaign.

It is quite shocking to suggest that the BNPL sector is the driving force behind increased borrowing in one of the toughest financial periods of our lives, and how contact with the average UK consumer is. Indicates that there are few.

In reality, many can use the BNPL platform during a pandemic to better manage their financial situation and make important purchases while leaving the cash needed to cover their living expenses.

Like other sectors, not all BNPL platforms are created the same, and there are very important differences among the larger, non-consumer-focused players in this area. I accept.

For the rest of us, the offer of BNPL is to improve the options open to consumers. As the UK’s first FCA-regulated BNPL provider, Butter is always looking for regulated and transparent space, using open banking and machine learning to be responsible for lending and allowing customers to borrow only what they can afford. I am trying to do it.

By doing this through interest-free lending, we are pushing for a complete improvement so that traditional banks have no choice but to launch, listen and normalize interest-free installment-based services for consumers. I want to

Those who truly embody a consumer-first, transparency-focused approach are less afraid in the form of the following regulations: In fact, we have been seeking such a framework for quite some time. “

Only 16% of BNPL consumers living beyond the means

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