The New Way to Pay: The Rise of Buy Now, Pay Later Payment Methods

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In 2022, 2 in 3 Americans are more interested in Buy Now, Pay Later (BNPL) than they were before the COVID pandemic. Buy Now, Pay Later, as the name suggests, is a type of short-term financing that allows customers to make purchases and pay for them at a later date. A survey conducted in January 2022 asked 1,000 participants their opinion on BNPL when it came to dental care and veterinarian expenses over traditional payment methods such as credit card, debit and cash. 

The general consensus of the survey was overwhelming in favor of BNPL. According to the survey findings, 69% of Americans worry about future dental costs. Similarly, around 66% of U.S pet owners are also concerned about future veterinarian costs, indicating a lack of easy and accessible funds to pay for care. Nearly 50% of pet owners take at least one month to pay off vet visits. The heftiness of these healthcare bills and the prolongation required to pay them off has drawn people to BNPL. 

The payment flexibility aspect of BNPL is what attracted most people to the alternative payment method. According to the survey, 71% said they would regularly use BNPL over traditional payment methods when visiting the dentist. The trend was even higher for pet owners, with 86% stating they would also choose BNPL over standard methods. In addition to payment flexibility, 30% of pet parents appreciated the BNPL benefit of avoiding credit card fees and interest and 22% appreciated the fair, fixed rates.

The majority of people interested in and more likely to use BNPL live on the east coast. Millennials’ interest in BNPL has increased more than any other age group during the pandemic. There are similar options when shopping online, with many ecommerce sites now offering Afterpay, a system that splits your payment into 4 separate bills, delaying the payment on purchases. It is safe to say the market and demand for buying now and paying later, will continue to grow and the option to do so will expand into other sectors of the consumer market.

Buy Now, Pay Later

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