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Credit Card Killer? Buy Now, Pay Later Booms With Young Americans

The hype train for buy now, pay later (BNPL) continues to pick up steam as consumers seek shopping alternatives during the pandemic – could this emerging payment option be a credit card killer?

While flexible payments are something that all generations can get behind, younger consumers in particular are drawn toward simple payment processes and behavioral shifts away from traditional credit cards. As a way to better understand usage, experiences, and trust surrounding BNPL, TSG surveyed over 1,500 U.S. consumers in February.

Check out some highlights below and download the infographic (no form completion necessary) to get a better understanding of why consumers are choosing BNPL.

Quick Hits

  • Typically users are within the younger population between ages 18 and 44, where 54% of that group has tried buy now pay later, compared to an average of 29% for ages 45+
  • 47% of users choose BNPL to avoid credit card interest, while 31% simply enjoy the flexibility offered by delaying payment for a purchase
  • 85% of consumers that have used buy now, pay later services plan to continue doing so in the future
  • Consumers indicated an average spend of $312 using BNPL; electronics, clothing and fashion, and beauty and cosmetics were the top three spending categories 
  • Regardless of experience with BNPL, most consumers stated a credit/debit card issued through their bank was the #1 most reliable payment method
TSG Can Help. Now.

This data is an example of the type of actionable research and data TSG can prepare based on your needs. Whether it is strategy, researchanalytics, or performance we can help.  Let us know know your needs by emailing