Alkami Telemetry Data – Buy Now Pay Later (BNPL) Frequency of Use
BNPL is becoming an additional bill, not a credit card replacement
Source: The 2023 Alkami Data Telemetry Report: State of the Industry℠, Emerging Financial Institution Opportunities in an Uncertain Economy / “The Definitions of “Money” and “Payments” Continue to Evolve” page 8.
What we’re seeing: Per Alkami’s primary market research, almost half of all digital banking consumers (44 percent) believe BNPL transactions will exceed credit card transactions within the next five years, with 28 percent of consumers reporting having used a BNPL provider at least once. Alkami’s telemetry data suggests that BNPL consumers may be becoming more dependent on this alternative for everyday purchases.
Takeaway: Buy Now Pay Later users are taking on almost as much in BNPL payments as they are paying on a single credit card. Consumer viewpoint toward the trend is slightly more positive than it was 12 months ago. This means that BNPL is effectively acting as an additional credit card for these users.
Call to action for FIs: Educate account holders on how to play safe in this financial landscape.
Download the 2023 Alkami Data Telemetry Report: State of the Industry℠, Emerging Financial Institution Opportunities in an Uncertain Economy