Passing along a report on a new coverage area added this quarter, “buy now pay later” platforms. Please let us know if there is anything that you would like us to add to this survey as we continue to shape our coverage on the topic.
Open Report:Bespoke – Buy Now Pay Later Vol 1
Key Takeaways and Charts:

  • Buy Now Pay Later Sentiment, Mixed But Leans Negative
    • Consumers have mixed opinions of buy now and pay later services. Among those who are familiar, feedback is fairly split, but leaning negative.
  • Reasons For NOT Using Buy Now Pay Later
    • Simply not needing to use them
    • Not liking / wanting more debt
  • Reasons For Using Buy Now Pay Later
    • Convenience
    • Helping them when they don’t have enough funds to buy something
    • Liking it for larger purchases
  • Does Buy Now Pay Later Drive Higher Spend?
    • Buy now and pay later users do indicate that it causes them to spend more. 39% said they would spend more/buy more things (61% said it would just replace their usual purchases when available).
  • Competitive Dynamics:
    • Of the buy now and pay later platforms, respondents are most familiar with After Pay, Klarna, and Affirm.
    • Affirm customers spend the most per transaction
    • After Pay customers use it the most frequently and offer the most favorable feedback when it comes to user assessment of whether their usage of the platform has increased or decreased recently.
    • Despite the increases in recent usage, users of these platforms expect their usage to decrease as a percentage of their total purchases in the next 6 months.
  • Who Uses Buy Now Pay Later?
    • Lower income respondents
    • Younger, generally
    • Employment was impacted by Covid
    • Of the eCommerce platforms we tested, customers of, Wal-Mart are the most likely to use buy now and pay later services. Etsy customers are the least likely to use these services.