Consumers are increasingly interested in Buy Now Pay Later payment platforms, as a result, it has encouraged higher spending patterns.
Consumer spending data firm, Cardify.ai, reported that 49 percent of people spend more when using a Buy Now Pay Later (BNPL) service in comparison to their spending habits if they were just using a credit card.
This allows consumers to spend money on luxury items more than normal, due to the convenient and flexible nature of BNPL services.
Cardify.ai has seen a growth in BNPL usage within higher income groups, more surprisingly, 75 percent of those who use BNPL services actually have the funds to cover the full cost, but prefer the BNPL option.
34 percent of BNPL users use the service for 'needs', while 66 percent use it for 'wants'. BNPL is seemingly a platform for those in the higher income brackets, to purchase luxury items they normally wouldn't.