Buying something now and paying later can help the consumer and the business. The business can sell something, and the consumer buys something they may not have purchased if they had to pay the full amount right there and then. In this consumer study, we focused on Buy now Pay later research to get a pulse on consumer sentiment toward this way of paying.
In a few hours, we completed the study of 100 respondents through Voxpopme’s Influence market research online community (MROC) of on-demand consumers.
We combined quantitative and qualitative questions in the study, and the platform neatly packaged the results in one dashboard.
On the quantitative side, we asked:
- How do you usually pay for larger purchases? (This was a screener question with only “Buy now Pay later” answers advancing.)
- Buy now Pay later
- Credit card
- Bank transfer
- How has your experience been with Buy now Pay later?
On the qualitative side, we asked:
- How do you feel about ‘Buy now Pay later’?
- Tell us about your experience with ‘Buy now Pay later.’
- What do you like or dislike about it?
- Why would or wouldn’t you recommend this service to friends and family?
Read next: Not sure what to ask? Check out Voxpopme’s tried and tested open-ended questions for video research.
Here’s a quick highlight reel of reactions:
The quant results
Just about all consumers that have used Buy now Pay later said they had a positive experience shopping this way.
The qual results
Respondents recorded a quick asynchronous video message for the qual questions – selfie-style, directly from their phones.
The automatic sentiment analysis showed that 53 percent of all statements were positive, 20 percent negative, and 27 percent neutral.
Unlike the quant questions – which are self-reported answers – this sentiment analysis pulls from what respondents said in their video responses.
The automatic theme explorer and Word Cloud gave me an idea of some of the most mentioned topics.
At times, I also use the Theme Builder and my knowledge of the subject to build and group themes for topics that I consider related.
Next, I read through the transcripts of the responses. This is an easy way to read some more in-depth, skim ahead when applicable, and go back to previous answers in seconds.
Why consumers like Buy now Pay later:
- It makes purchases easier in a tough economy
- Allows purchases even if short on cash currently
- Easy process to use
- Making a big purchase doesn’t seem as intimating
- Like to pick intervals of payments
- No fees as long as payments are made on time
Sharon, 23, of Uniondale, said, “I feel like I can’t live without Buy now. Pay later anymore.”
What consumers don’t like about Buy now Pay later:
- Interest rates (on the flip side, some consumers like the zero-percent interest deals)
- Can affect credit score if payments aren’t made on time
So Buy now Pay later has been a hit with most consumers, who have used it to buy anything from groceries to larger consumer goods and many things in between.
Kendra, 33, of Forth Worth, does offer a warning, though, not to overuse it.
“One thing I dislike about it is it can become a crutch if you use it too often,” she said. “So honestly, I wouldn’t recommend it to family just for that reason.”
Where to next?
Some consumers mentioned that they would like more companies to offer Buy it Pay Later. That could be an opportunity to ask consumers at what price point Buy now Pay later is relevant to them. I’ve seen it for what I would consider smaller purchases, for example, but that threshold certainly is a personal decision for consumers.
Read next: How you can use video surveys for your next project!