Seven out of 10 consumers prefer 'Buy Now Pay Later' to credit cards, finds survey

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8th October 2021 00:47 - Financial Services

Seven out of 10 consumers prefer 'Buy Now Pay Later' to credit cards: A survey of UK consumers has revealed the increasing popularity of Buy Now Pay Later (BNPL) options when buying products, with seven out of 10 saying they prefer this method to credit cards. Just over a third (35%) said they tried this payment method for the first time during the Covid-19 crisis, while more than half (54%) said that BNPL will replace their credit card.

The Marqeta 2021 State of Credit Report was compiled following a survey of around 1,000 UK consumers, which revealed that  'affordability' and 'ease of management' were the top reasons why consumers favoured this payment structure.

The survey also asked questions to those who were familiar with, and actively used BNPL options before Covid, such as how regularly they did so. It found that for 67% their usage had increased over the last 12 months, with more than half (53%) revealing concern that BNPL makes it easier to fall into debt.

Covid-19 

Looking at how the pandemic has affected consumers financially, the survey found that nearly 3 in-5 (59%) respondents have had to rely on credit to make ends meet during the pandemic, and nearly a quarter (23%) said they have had difficulty when trying to keep up with their minimum payments during the crisis.

Almost two-thirds of credit card users said that they use their credit card at least one a week, and usage is 'frequent', while 42% said they pay by credit card five or more times during a typical week.

When asked about the type of credit card they would like to use, nearly three-quarters said they would use a card which supports environmental causes (72%) or a family credit card (43%). Loyalty schemes were also found to be attractive, with nearly two-thirds stating they are interested in non-traditional rewards, while 92% were interested in building a rewards programme of their own.

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