WASHINGTON, D.C. – The Financial Technology Association, a trade association representing innovative financial technology companies, today released a statement on the Federal Reserve Bank of New York’s new study, “How and Why Do Consumers Use Buy Now Pay Later”:
“As prices for everyday goods and services continue to rise, consumers of all income levels are increasingly turning to alternative payment methods like Buy Now Pay Later to manage their finances responsibly,” said Penny Lee, President and Chief Executive Officer of the Financial Technology Association. “Today’s study from the New York Fed shows that consumers want a competitive financial system and are choosing payment options without high-interest rates or revolving debt. People are having positive experiences with Buy Now Pay Later and want to continue using these affordable, easy-to-use financial products.”
The New York Fed study found that once consumers use Buy Now Pay Later (BNPL), they are more likely to use it again, reflecting results from polling conducted by Morning Consult on behalf of the Financial Technology Association. According to FTA’s research:
- More than three-quarters (79%) of consumers who used BNPLs report having a positive experience with them.
- More than nine in ten (94%) users of BNPLs found that they could easily understand the terms and services. The Financial Health Network conducted a study with similar findings.
- Zero to low-interest rates were the most important feature when selecting a BNPL payment option.
- Other top reasons were flexible payment options, easy-to-understand terms and conditions, and transparency.
Additional research by Oxford Economics found that one in five Buy Now Pay Later customers say it is their preferred payment method, ahead of cash, credit, or debit cards. More than two-thirds of customers would use BNPL more if it were more widely available. Overall, two in five American consumers use Buy Now Pay Later services.
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The Financial Technology Association (FTA) is a Washington, DC-based trade association representing industry leaders shaping the future of finance. We champion the power of technology-centered financial services and advocate for the modernization of financial regulation to support inclusion and responsible innovation.