Research by Splitit has found that 54% of UK credit card users plan to use buy now, pay later (BNPL) services this year.
The survey – UK Consumer Perspectives: Credit cards and Buy Now Pay Later – looks at credit card holder attitudes towards spending, specifically around BNPL.
According to the research, alongside the 54% of respondents who said they are planning to use BNPL in 2022, 20% said they were planning to do so on four or more purchases in the next 12 months. Up to 46% of respondents agreed or strongly agreed with the idea that BNPL is a smarter way to manage personal finances.
Almost half – 49% – of those surveyed agreed that they’d prefer to use BNPL that uses their existing credit card while 63% said they would prefer to have the option to pay monthly.
Another key finding in the study was that 54% of those surveyed were fine with four or fewer payments for purchases under £300, while 67% favour more than four payments for a £500 purchase. In addition, 86% want more than four on purchases of £1,000 or higher.
The survey also found that 53% of credit card holders would spend more with a merchant if they could pay over time.
Splitit Interim CEO John Harper said, “The rise of online shopping has empowered consumers to become more financially aware, giving them easier access to tools to help them more effectively manage their money. With so many shoppers planning to use BNPL services, I expect 2022 to be the year of the financially savvy shopper, innovatively managing money to maximise personal benefit.”
“There has been much debate about the decline of the credit card and its role in the future. These results show that for many financially savvy consumers there is still a place for the credit card. This trend is mirrored in the usage and growth on our own platform.”
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