Survey: Credit card spending seems healthy

The growing popularity of “buy now, pay later” (BNPL) payments doesn’t seem to dampen the enthusiasm of credit cardholders.

According to a recent survey of 2,000 credit cardholders from credit card installment payment solutions provider Splitit, 60% of respondents would rather use a BNPL option with existing credit cards than open new lines. credit. Additionally, 64% of respondents expect their credit card spending to be the same or higher than it was in 2021.

The survey, “US Consumer Perspectives: Credit Cards and Buy Now Pay Later,” found that most respondents (56%) would prefer to make monthly payments rather than every two weeks (25%). The larger the purchase amount, the higher the number, with 70% preferring monthly payments for purchases of $500 or more.

The results also indicate that consumers clearly prefer options in terms of number of installments. While 60% of respondents accept four payments or less for purchases under $300, 66% prefer more than four payments for a purchase of $500, and 75% want more than four payments for purchases of $1,000 or more. more.

As shoppers consider larger purchases and consider using an BNPL or installment plan on purchases over $1,000 in the coming year, several categories stand out to make gains. For example, nearly two-thirds of respondents would make renovation (66%) or furniture (63%) purchases.

Beyond home, the other top categories are health expenses not covered by insurance (62%), auto accessories and repairs (61%), travel (56%) and jewelry (51%).

Data previously released by eMarketer confirms the rapid growth of BNPL payments. According to eMarketer, more than 45.1 million US consumers ages 14 and older are expected to use a BNPL Platform in 2021, up 81.2% from the previous year. This represents more than one-fifth (21.5%) of digital buyers in the United States. By 2025, this figure will rise to more than a third. Young consumers are driving adoption of flexible payments, eMarketer said. Millennials make up 42.7% of BNPL, followed by Gen Zers, who make up 30.3%.

Interestingly, the Splitit survey found that 83% of respondents believe credit card perks – such as cash back, points or miles – are important, and 48% say it’s the main reason for using their credit card.

In other findings from Splitit, the survey found that 83% are happy with their credit cards and 71% see credit cards as part of a healthy approach to personal finance. Additionally, 69% would use their card more often if they had a lower interest rate, and 63% would likely use their card if they could pay in smaller interest-free installments.

“Despite discussions around declining credit card usage, we continue to see continued growth across our platform, including many key categories around home, fitness and sporting goods, jewelry and luxury,” said John Harper, interim CEO of Splitit. “From what we’ve seen so far over the past few months, 2022 will continue to be a year where people spend on homes and on themselves. modernize their wardrobe and accessories.”

About the author