Shoppers who want to make use of online retailers’ accommodative return policies by buying multiple items and then sending back the ones that don’t fit or don’t suit are using buy now pay later services to avoid paying for all the items upfront.
This surprising BNPL use case emerged from comparison site Mozo’s survey of users of the fast-growing payment method, which found that 22 per cent of BNPL users who shop online buy multiple items in different sizes or styles and return the ones they don’t like or that don’t fit.
Using BNPL allows them to do this without having to pay the full amount for the multiple items.
Mozo also found that among BNPL users, for 33 per cent it is their go-to form of payment, while 13 per cent say they have used their debit cards less since setting up a BNPL account.
While BNPL users enjoy the convenience and low cost of the payment method, they are also aware of the risks. Close to half (46 per cent) agree that the market needs to be regulated.
More than a third of BNPL users (37 per cent) initiate their BNPL purchases when browsing their BNPL provider’s app or website. Forty-two per cent initiate their purchases while visiting an online shop, 16 per cent in a store and 5 per cent on social media.
For a minority, BNPL carries the same social stigma that laybuy had in its day – being seen as a payment method for people who can’t afford to pay outright. Forty per cent said they avoid using BNPL when shopping with others.