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Issuer-Provided Installment Plans Surge While In-Store BNPL Flattens

(New York, NY) 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.

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