58% Regret Making Purchases on Buy Now-Pay Later Terms

When it comes to buying now and paying later, consumers seem to have a love / hate relationship with the deal.

Research shows that more than half of customers regret buying something with Buy Now and Pay later terms. However, at the same time, 60% of consumers admit to making purchases through this type of bargain.

These stats involving buy now and pay later were revealed in a report by C + R Research, a market research firm that provides insights into consumer habits. In its “Buy Now, Pay-later Statistics and User Habits” report, C + R Research surveyed 2,005 consumers online through Amazon’s Mechanical Turk survey platform. The survey was conducted in late March and early April 2021.

Buy now and pay later increases

51% of consumers surveyed said they used Buy Now, Pay later during the Covid-19 pandemic.

59% admit that they have purchased an unnecessary item in these types of deals that they just couldn’t afford.

Our research looked at the most popular items to buy now, and the pay-later deals. It found that clothing and electronics are the most common type of product purchased this way, with 47% of consumers buying clothes and 44% buying electronic devices respectively.

You should take small retail stores into consideration

The survey provides insight into the habits and demands of today’s consumers for small business retailers. For companies considering offering this payment service, you should bear in mind that customers can regret buying in this way, especially for “non-essential” and expensive items.

On the other hand, the vast majority choose buy now and pay later trades, so companies should not ignore such services.

Providing customers with an opportunity to buy something and pay for it later can be an effective way for companies to sell the items, provided they are aware of the cost of the product so that customers are not persuaded to buy something that they cannot really afford.

As C + R Research advises: “More than half of users (57%) say they regret making a purchase with Pay Now, Pay Later because the item was too expensive. Obviously, when consumers buy an item outside of their budget, it may result. This is due to lost payments; nearly half of them say they are currently in arrears, and roughly the same percentage says they are likely to make a late payment within the next twelve months. “

Credit Cards for Buy Now and Pay later

The survey also explores the future of these types of payments. According to the survey, 38% of users believe they buy now, and that payment services later will eventually replace credit cards. More than half (56%) say they prefer buying now, paying later compared to using credit cards for purchases.

It can be a smart move for small business merchants to buy now, and pay later for the services available on their products. However, it is also important that customers are not left unhappy about their purchases and face stress and anxiety about making regular payments.

It is therefore imperative to re-emphasize the message to customers that they should not make purchases in this way unless they are able to afford the payments. Firms should also be mindful of what they are offering these deals on, as offering them more expensive products may add to the consumers’ inability to pay problem.

Photo: Depositphotos

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