Good morning, Marketers, are your customers buying now, but paying later?
Between November 2019 and November 2021, Americans’ usage of “buy now, pay later” (BNPL) options increased 438%. Americans also seem to be spending more than ever this holiday season, with a record 22 days last month driving over $3 billion in online consumer spend, according to Adobe. And, let’s not forget that consumer prices recently spiked by 6.2%, the largest inflation surge in over three decades.
It’s logical, goods cost more now, so customers are turning to options that allow them to smooth out their expenses over a larger period of time. The thing is, two-thirds of BNPL app users said they spent more than they would have otherwise, according to Lending Tree. And, these BNPL companies may not be running thorough credit checks before approving purchases.
It’s not our responsibility to tell audiences how to spend their money, even if it’s money they don’t currently have. But, it’s worth thinking about since customers may not be able to support our brands in the future if they’re still paying for purchases from months back.
George Nguyen,
Editor
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