New survey highlights interesting facts about BNPL service users

Experts estimate that over 20,000 shoppers have already paid with Buy Now Pay Later in the last 1 year, with a total value of around HUF 1 billion. Several of Hungary’s leading online shops have already made BNPL available, and the adoption rate in Western European e-commerce has reached 20%. One of Hungary’s leading BNPL service providers has carried out a recent survey on the shopping habits of instalment users.

InstaCash surveyed more than 2,000 shoppers about their experiences with instalment payment solutions. The BNPL Spotlight2024 survey participants were considered premium customers, with an average income of over HUF 500,000 and an average age of 39. 60% of respondents shop online at least once a month and their average annual online spend exceeds half a million HUF.

Why do consumers choose BNPL?

“95% of the respondents were extremely satisfied, they particularly appreciated the speed, the paperlessness and the convenience of settling their payments by credit card,” stressed the co-owner of InstaCash. “This positive feedback confirms that user experience plays a significant role in making BNPL solutions popular with premium customers.”

Tomás Antal also quoted some of the written customer feedback:

“This is the first time in my life that I have not encountered a problem with this kind of administration, hats off! :)”

“Thank you! I have never had such a fast and flexible service! I recommend this platform and store to everyone! :)”

“Very fast! And practical too! I finally feel in 2024! We need more of these improvements!

77% of respondents also cited the 0% APR as important when asked why they chose this innovative payment method.

“This shows that it is of utmost importance for web shoppers that the service does not involve extra costs,” said the co-owner of InstaCash. Tomás Antal added that 70% of the respondents see instalment payments as a convenience service, as it allows them to pay for large purchases spread over several months. “This further confirms our previous experience that our customers are a financially conscious, premium class.”

The majority of customers surveyed do not intend to use any other type of credit product other than BNPL in the future, with 76% indicating that they would not want to use any other type of credit at all.

The study also asked how satisfied customers are with the BNPL payment process.

The results of the study show that 80% of customers who have tried both a commercial loan and a BNPL would prefer to use a BNPL in the future, while 20% are indifferent between a commercial loan and a BNPL.

Payment by instalments equals a competitive advantage

“We asked shoppers if they would consider if a merchant or service provider offered an installment facility when making a choice. 96% of respondents said that if the product and price were the same, they would prefer to shop at a place where installment payments were available. Only 4% of buyers said that they would always buy from the cheapest place, even if they did not offer interest-free installments, even if installment payments were available,” explained Tomás Antal. “In other words, the research also confirms that the BNPL solution is a safe, widely used and popular process.”

The research also revealed that a third of respondents were able to purchase a higher value product than they had originally planned thanks to BNPL. “In other words, the introduction of instalment payments can increase the average basket value,” emphasised Tomás Antal.

The expert cited the experience at garmin.hu as an example.

“Our strategic partner, an online store selling smartwatches and GPS devices, saw a 38% increase in sales thanks to the instalment facility, with a conversion rate of 64%. Customers rated the overall BNPL process with an average score of 4.7 on a five-point scale, and appreciated the simple, transparent, easy-to-use, fast, interest-free installment option.”

All market forecasts indicate that the number of online shops offering BNPL will continue to grow. “In the near future, another 10% of e-merchants plan to introduce the option,” highlighted the co-owner of InstaCash. BNPL is no longer just a fad for innovative small and medium-sized merchants,” said Tomás Antal. “More and more ‘TOP league’ e-merchants have also decided to provide their customers with the option.”

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New survey highlights interesting facts about BNPL service users

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Payment by instalments equals a competitive advantage

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