Buy Now Pay Later Could Soon Replace Credit Cards Globally, Survey Reveals

In recent years, advances in technology have led to major changes in consumer behavior and shopping habits, and online and digital payments have become extremely popular with consumers.

Now, buy now, pay later seems to have captured the attention of consumers, according to the results of a recent global survey in 20 countries, involving 60,000 consumers and 2,000 businesses.

Experian’s survey found that almost 57% of consumers believed BNPL had the potential to replace credit cards. Consumers in Norway, the Netherlands, Germany, China, Indonesia and Australia use it the most, although it is still in its infancy.

Indian consumers are still not fully accustomed to it and rely more on credit cards, debit cards and traditional banking services, the survey titled Global Outlook Report: April 2022 said.

India, however, is a leading name in biometrics and login recognition. About 60% of consumers surveyed said they felt more secure using biometrics compared to a year ago. Other countries adopting biometrics are the United States, Brazil and South Africa.

The 20 countries included in the survey are Australia, Brazil, Chile, China, Colombia, Denmark, Germany, India, Indonesia, Ireland, Italy, Malaysia , the Netherlands, Norway, Peru, Singapore, South Africa, Spain, the United Kingdom and the United States.

As for BNPL, 18% of consumers surveyed said they had used it in the last six months. A whopping 71 percent of consumers found it safe and secure.

BNPL, however, was still lagging behind in mobile wallets, Netbanking as well as credit card transactions. That said, with increased awareness, the upcoming payment method is already popping up in high-income households, according to the survey.

According to the survey, BNPL’s growing popularity is supported by three reasons – namely, avoiding credit card debt, which was supported by 80 percent of respondents in the US and 70 percent in the UK. ; preferred method of payment, as revealed by 80% of Indonesian consumers and 60% of Norwegian consumers; and finally, buying over budget, as reported by 60% of German consumers.

When it comes to the security of online transactions, consumer reactions seem mixed. The survey suggested that 52% of consumers were concerned about their online transactions, while 42% were more concerned now than they were 12 months ago.

Conversely, 45% of consumers believed companies had strong security measures in place to counter these security issues, while 41% believed companies tended to use more security measures when operating. on line.

Additionally, 42% believed that businesses were able to effectively resolve their online transaction issues, while 40% confirmed that they had not encountered any problems in the past with online payment methods.

“Simply put, there is no doubt that consumers are concerned about the increase in online transactional activity. However, 84% trust the companies they transact with online,” the survey says.