In recent years, technological advancement has brought about major changes in consumer behaviour and purchase habits, and online and digital payments have become extremely popular with consumers.
Now, buy now pay later seems to have caught the fancy of consumers, according to the findings of a recent global survey across 20 nations, involving 60,000 consumers and 2,000 businesses.
The survey by Experian revealed that almost 57 per cent consumers strongly felt that BNPL has the potential to replace credit cards. Consumers in Norway, the Netherlands, Germany, China, Indonesia, and, Australia are using it the most, though it is still in its nascent stage.
Indian consumers are not yet fully accustomed to it, and are relying more on credit cards, debit cards, and, traditional banking, the survey titled Global Insights Report: April 2022 said.
India, however, is a leading name in biometrics and log-in recognition. About 60 per cent consumers surveyed said they felt safer using biometrics features compared to a year ago. Other nations taking to biometrics are the US, Brazil, and South Africa.
The 20 countries included in the survey are Australia, Brazil, Chile, China, Columbia, Denmark, Germany, India, Indonesia, Ireland, Italy, Malaysia, the Netherlands, Norway, Peru, Singapore, South Africa, Spain, the UK, and the US.
In terms of BNPL, 18 per cent of consumers surveyed claim to have used it in the last six months. A whopping 71 per cent of consumers found it safe and safe and secure.
BNPL, however, still lagged behind mobile wallets, Netbanking as well as credit card transactions. That said, with increased awareness, the upcoming payment mode is already making an appearance in higher-income households, the survey said.
According to the survey, the increasing popularity of BNPL is supported by three reasons – namely, avoiding credit card debt, which was backed by 80 per cent of those surveyed in the US and 70 per cent in the UK; preferred payment mode, as revealed by 80 per cent Indonesian and 60 per cent Norwegian consumers; and lastly, purchase crossing the budget, as indicated by 60 per cent of German consumers.
With respect to safety in online transactions, there seemed to be a mixed response from consumers. The survey suggested that 52 per cent of consumers were concerned about their online transactions while 42 per cent were more concerned now than they were 12 months ago.
Conversely, 45 per cent of consumers believed that businesses had strong security measures in place, to counter these security issues, while 41 per cent felt that companies had the tendency to use more security measures while operating online.
Additionally, 42 per cent believed that businesses were capable of effectively resolving their issues in online transactions, while 40 per cent corroborated that they faced no issues in the past with online payment modes.
“In simple terms, there’s no doubt that consumers are concerned about the increased online transactional activity. However, 84 per cent show confidence in companies with which they transact online,” the survey said.