53% of Consumers Look for Trustworthiness From Potential Lenders

The top thing consumers want from credit providers is trustworthiness. Fifty-three percent of consumers say trust in the credit provider is an important factor when deciding to use a short-term credit payment method, according to BNPL, Banks And The Trust Factor, a PYMNTS and Amount collaboration based on a survey of 2,237 U.S. consumers.

Get the report: BNPL, Banks And The Trust Factor

Beyond trustworthiness, other factors that consumers want from credit providers are the ability to spread payments over time, which was cited by 50% of respondents, and ease and convenience, cited by 49%.

These factors align with the benefits that consumers believe buy now, pay later (BNPL) options can provide. The three most highly ranked factors consumers want from lenders are also the three most cited benefits consumers say BNPL offers — albeit ranked in a different order.

Forty-two percent of consumers cite the ability to spread payments over time as a benefit that makes them interested in BNPL, 33% cite ease and convenience, and 32% cite trust in the credit provider.

Consumers believe BNPL can deliver the short-term lending experiences they expect. PYMNTS research found that those who have already used BNPL are interested in using it again. In fact, 92% of the consumers who use BNPL more than once a week say they are highly interested in using it again, as did 65% of once-a-month users of BNPL and 43% of once-a-year users.

Banks can position themselves for a successful entry into the BNPL market by tailoring their products to these consumers who have been using BNPL on a regular basis.

Consumers say they want to be able to trust their credit providers, and trust has traditionally been an asset for banks in terms of how they are viewed by consumers.

Leveraging that trust and offering the flexible payment options that appeal to most BNPL users can help banks build inroads and position themselves for success in the BNPL market in the future.