Over the past few years, post-purchase issuer-provided
installment plans have surged in popularity, thanks to offerings
like American Express Plan It, My Chase
Plan, and Mastercard Installments. Recent data from Auriemma
Group's The Payments Report indicates these plans are now rivaling
in-store installment offers.
NEW
YORK, July 8, 2024 /PRNewswire-PRWeb/ -- Over
the past few years, post-purchase issuer-provided installment plans
have surged in popularity, thanks to offerings like American
Express Plan It, My Chase Plan, and
Mastercard Installments. Recent data from Auriemma Group's The
Payments Report indicates these plans are now rivaling in-store
installment offers. Availability increased 18 percentage points
since Q4 2019, with 40% of credit cardholders having been offered
this option, while in-store installment plans remained stagnant at
36% over the period.
"Post-purchase installment plans provide cardholders the
benefits of splitting payments without the hassle of signing up for
a new product," says Jonathan
O'Connor, Senior Manager of Research at Auriemma. "It is no
surprise these options are catching up to in-store Buy Now, Pay
Later offers. Cardholders with access to this option enjoy the
benefits of both products."
While enrollment with Buy Now, Pay Later at the point-of-sale
in-store is slightly higher than post-purchase issuer-provided
installment plans among debit cardholders (19% and 12%,
respectively), again the trend line is more favorable for the
latter, which has grown 7-percentage points, compared to
4-percentage point growth for in-store enrollment.
And when asked which option they would prefer, over two-thirds
of debit cardholders consistently say they would rather pay with
their card at the point-of-sale and later enroll their purchase
onto an installment plan with a card provider. The remaining
one-third prefer enrolling with a Buy Now, Pay Later provider, like
Klarna or Affirm, at the point-of-sale.
"Given the prevailing trends and cardholder preferences, we
expect post-purchase issuer-provided installment plans to outpace
in-store Buy Now, Pay Later options in the coming year." says
O'Connor. "Our next issue of The Payments Report will delve further
into these products to explore their usage and potential trajectory
in light of the expanding installment lending landscape in
retail."
Survey Methodology
The Payments Report
This Auriemma Group study was conducted online within the US by
an independent field service provider on behalf of Auriemma Group
(Auriemma) in March and April 2024
among 800 adult debit cardholders. The number of interviews
completed for both is sufficient to allow for statistical
significance testing among sub-groups at the 95% confidence level
±5%, unless otherwise noted. The purpose of the research was not
disclosed, nor did respondents know the criteria for
qualifying.
About Auriemma Group
For 40 years, Auriemma's mission has been to empower clients
with authoritative data and actionable insights. Our team comprises
recognized experts in four primary areas: operational
effectiveness, consumer research, co-brand partnerships, and
corporate finance. Our business intelligence and advisory services
give clients access to the data, expertise and tools they need to
navigate an increasingly complex environment and maximize their
performance. Auriemma serves the consumer financial services
ecosystem from our offices in New York
City and London. For more
information, email Jonathan O'Connor
at research@auriemma.group.
Media Contact
Jonathan O'Connor, Auriemma
Group, 1-646-437-6116, jonathan.oconnor@acg.net,
www.auriemma.group
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SOURCE Auriemma Group