Retail payment options are undergoing a major transformation, right along with the consumers who use them. Buy now, pay later (BNPL) is continuing to gain momentum as a powerful tool that helps merchants boost revenue and loyalty while empowering shoppers to better manage their own finances. 

A 2024 survey led by Sezzle and Retail Dive’s studioID reveals who today’s BNPL shoppers really are—and they may not be who you think. Let’s take a closer look at some of the myths and truths we uncovered about these consumers.

Myth No. 1: Shoppers use BNPL because they can’t afford what they’re buying without it.

In the past, retailers may have thought consumers relied on BNPL in times of financial stress, but fiscal fragility isn’t the driver anymore.

Instead, half of surveyed shoppers use BNPL to boost buying power and ensure that they have the cash flow they need to support their purchases. First and foremost, they rely on this payment method to improve budgeting and cash flow. They also use it to avoid interest (32%), as well as to reduce credit card usage (28%), avoid longer-term debt (27%), and build credit (25%).

Myth No. 2: BNPL shoppers don’t have access to other forms of credit.

Several years ago, BNPL was perceived as a way to spend beyond your means options like credit, debit, and retail cards or loans weren’t available—but the latest industry data proves otherwise.

The truth: 73% of surveyed BNPL shoppers say they haven’t been denied a credit card, payment plan, or loan in the last three years. Instead of using the service to make up for a lack of other payment methods, they use it as a responsible approach to buying. Buying now and paying later allows them to pay in a way that works best for their financial situation, without overstretching their dollars or risking the possibility of overdrawing their bank or credit union accounts.

“Today, retailers need to be agnostic when it comes to payment forms,” explains Nancy Eichler, who joined Sezzle as senior vice president of marketing after spending more than a decade in retail sales leadership. “It’s all about accessibility. If you’re not providing accessibility to your products by allowing consumers to shop using the form of payment and the BNPL platform they choose, then that’s a disservice—not only to the consumer but also to you as a retailer.”

Myth No. 3: Shoppers only use BNPL to make large purchases.

Traditionally, BNPL may conjure up images of people purchasing higher-value goods, such as luxury furniture, TVs and laptops, and indulgent vacations.

But in reality, BNPL payment methods are used by consumers to make purchases of all kinds. According to surveyed shoppers, top purchase categories include:

• Fashion/apparel (51%)
• Electronics (44%) 
• Entertainment (44%)
• Health and beauty (25%)

On average, consumers finance between $100 and $499 in a single purchase, but price ranges vary. Lee Brading, senior vice president of corporate development and operational excellence at Sezzle, says it’s becoming less about splurging on expensive items and more about convenience and flexibility. “Since Sezzle has launched its subscription products, we’ve seen average ticket price come down. People are using it more for everyday purchases.”

Myth No. 4: BNPL shoppers often default on their payments.

Some retailers and consumers may view BNPL as a debt trap that enables spending to spiral out of control. They assume that purchasers don’t make payments on time and rack up costly penalties as a result, sometimes damaging their credit along the way.

But most consumers (87%) say they don’t struggle to make their BNPL payments on time. Because they use a financing option that works for them, they can purchase responsibly and take advantage of the opportunity to split purchases into smaller payments without incurring interest or penalties.

Myth No. 5: BNPL is only used by Gen Z and Millennials.

While younger consumers are often drawn to the benefits of BNPL, our survey reveals that shoppers of all ages value the flexibility it provides. 

Instead of age, purchasing through short-term financing is often driven more by life events and preferences—whether it’s college students buying books, young couples investing in home goods or retirees making car repairs.

Explore BNPL in More Detail

Today, offering BNPL is less about financial vulnerability and more about accessibility and personalized experiences for the consumer. “When merchants don’t offer BNPL, then they make their products inaccessible and lose access to the group of consumers who want greater flexibility in how they pay,” says Eichler. “By making your products and services available to a larger group, you’re naturally going to see a greater incremental lift.”

Learn more about how both merchants and consumers can benefit from BNPL.