More Than One-Quarter of Surveyed BNPL Users Have Missed at Least One Payment

As the popularity of buy now, pay later services accelerates, potential problems do, too. Evidence of that has emerged in new research that finds 14% of BNPL users missed a payment once, and 12% missed a payment more than once, according to a new report from Piplsay, a consumer-research firm. Most consumers—74%—were able to make their payments on time.

Conducted Sept. 28-30 as an online survey that gathered 30,880 responses, the research found that 43% of Gen Z consumers missed a BNPL payment at least once this year, compared to 31% of Millennials and 26% of Gen X shoppers.

Still, this behavior doesn’t appear to be stymying the payment option’s popularity among consumers or providers. Last month, Zilch Technology Ltd. became one of the latest BNPL providers with its entry into the U.S. market.

The Piplsay research also found that 41% had used a BNPL service in the past year and 52% had an average purchase limit of $400 or less. Twenty-seven percent had an average purchase limit above $500.

Most consumers—34%—chose a BNPL option once or twice in the past year, followed by 26% who used three to four times, 21% who used it five to seven times, and 19% more than seven times.

In related news, StitcherAds research found that younger consumers are the biggest drivers for BNPL options in ads appearing on social-media outlets, such as Facebook, Instagram, Pinterest, and Snapchat.

When asked if they had purchased a product featuring a BNPL option in a social-media ad, 60% of Millennials and 57% of Gen Z consumers said they had. In comparison, only 37% of Gen X consumers and 19% of Baby Boomers said yes.

Younger consumers also were more likely to try a new brand or product based on an ad they saw on social media in the past month. Sixty-three percent of Millennials, 56% of Gen X, and 52% of Gen Z said they had. That compares to just 33% of Baby Boomers. StitcherAds data includes responses from 500 U.S. consumers between 18 and 65 years old.