web analytics

In the U.S., BNPL use is shifting towards smaller purchases

The new report from Hamburg-based market intelligence firm yStats.com, “North America Buy Now Pay Later Market and Trends 2023” offers a comprehensive overview of the new developments in the BNPL market in the region, provides insights into consumer attitudes towards these services and changes in consumer behavior. As per the report’s findings, the use of BNPL in the U.S. is changing from bigger item purchases to smaller ones.

While the value of BNPL payments continues to grow, the growth rate is projected to significantly drop

The BNPL payment value in the U.S. nearly doubled between 2021 and 2022. However, during the same period, the annual growth rate declined from triple digits to double digits. According to a survey cited in the yStats.com report, the percentage of respondents currently using BNPL in the U.S. decreased by a single digit percentage from 2021 to 2022. Furthermore, the number of BNPL users in the country is expected to experience a similar trend, with the growth rate of users declining significantly by 2026. On the other hand, the share of internet users utilizing BNPL in the U.S. is projected to more than triple from 2021 to 2026.

Trust in BNPL providers to provide a secure payment environment ranks low

According to the new yStats.com publication, approximately 9 out of 10 respondents in the U.S. expressed trust in their primary banks to provide a secure environment for payments and purchases. In contrast, only around 3 out of 10 respondents stated trust in BNPL providers. Consequently, it is not surprising that BNPL ranked last among payment methods used at least 5 times per month in North America, with a low single-digit percentage. Similarly, BNPL ranked last among payment methods used for online purchases by current Apple customers in the U.S. Additionally, the annual revenue growth from BNPL experienced a significant decrease, shifting from a positive mid-range percentage in 2022 to a negative percentage in January-February 2023. However, the share of online purchases paid for using BNPL decreased but remained positive. These findings indicate that U.S. consumers are shifting their BNPL usage from financing larger purchases to smaller ones.