As the Buy Now Pay Later services market continues to grow, there is mystery and confusion round the characteristics of a standard Buy Now Pay Later customer. However, they have been an array of surveys lately which have identified a number of specific characteristics. Even though this payment service is available to everyone and very useful for many people, there appears to be a specific type of user making the most of Buy Now Pay Later apps.
User sex and household income
The highest proportion of female (62%), Buy Now Pay Later users, come from households with an income of less than $50,000. For males (92%) it is more prevalent for homes with an income greater than $200,000.
Age groups
While many people see Buy Now Pay Later apps as more popular with the younger generation, this is not the case. The survey shows that 62% of those aged between 35 and 50 admitted to trying Buy Now Pay Later. This compares with 40% for those aged 16 to 34, 32% of those aged 18 to 25 and just 15.5% for those aged 51 to 64. This will come as a surprise to many people.
Marital status
In the US, where 48% of American adults are married, 63% said they had used BNPL services in the recent past. When you compare this with the household income figures above and the fact many woman control household budgets, this would suggest that Buy Now Pay Later is more popular with those on limited income.
Family life
It will probably come as no surprise to learn that the average Buy Now Pay Later user has children, where there is obviously an added living expense. A US-based survey found that 74% of Buy Now Pay Later had children. While 26% have not yet experienced Buy Now Pay Later services, this may change in the run up to Christmas!
Employment status
While many have criticised Buy Now Pay Later services as a means of racking up unaffordable debt, this may not be the case. The survey found that 73% of those using Buy Now Pay Later were in full-time employment. This compares to just 46% of non-Buy Now Pay Later customers – a sign that people are being sensible with their finances?
Qualifications
Interestingly, 26% of Buy Now Pay Later customers had a PhD, medical/law degree or another recognised form of advanced education. This compares to 12% for those who have never used Buy Now Pay Later services. When it comes to associate degrees, bachelor degrees and completed college education, this was tilted more in favour of non-Buy Now Pay Later customers as opposed to those who would use the service, 57%/52%.
Peer-to-peer payment systems
A staggering 88% of Buy Now Pay Later users have tried traditional peer-to-peer payment system such as PayPal. Whether this suggests that the average Buy Now Pay Later customer is more tech savvy is debatable.
On-demand delivery services
The on-demand delivery service is one area which has been targeted by many Buy Now Pay Later companies. In this survey, 72% of Buy Now Pay Later clients use an on-demand delivery service at least once a week. This compares to 53% for those who have never used Buy Now Pay Later services.
Spending plans
This is perhaps the most concerning figure, especially for those who have been critical of the Buy Now Pay Later movement. It appears that 42% of Buy Now Pay Later users plan to budget more money for their holidays against 13% budgeting less. Compared to those who do not use Buy Now Pay Later services, the figures are very different. Just 8% planned to spend more while 36% will be reducing their budgets in the foreseeable future.
Bank account
One thing is for certain, the use of Buy Now Pay Later services has prompted many people to reconsider their banking arrangements. Of those who use these services, 59% were considering changing bank accounts against just 32% for those who have never used Buy Now Pay Later services.
Conclusion
The survey concluded that the average Buy Now Pay Later customer was middle-aged, mid-career, tech savvy with the ability to leverage their income to enhance their lifestyle. As opposed to the common conclusion that those using Buy Now Pay Later are simply racking up debt, this survey suggests otherwise. So, if this is the average Buy Now Pay Later customer it would appear that affordability is not necessary the problem some people might suggest.
