Alkami Telemetry Data – Buy Now Pay Later

Buy Now Pay Later (BNPL) Trends: These consumers may be becoming more dependent on this alternative for everyday purchases

^{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:

Alkami's telemetry data suggests that BNPL consumers may be becoming more dependent on this alternative for everyday purchases. The average cost of an item purchased with BNPL has decreased approximately 50 percent since 2018, while the average number of BNPL transactions per month has increased from 1.5 to more than 5 (Exhibit 6).

Takeaway:

BNPL is an emerging player in the financial market allowing consumers to make purchases on credit without involving a credit card. BNPL borrowers are more likely to be highly indebted and have lower credit scores than non-BNPL users

Call to action for FIs:

BNPL is effectively acting as an additional credit card for users. Account holders need education and advice on this trend as borrowerers are more likely to be highly indebted, have credit delinquencies, and lower credit scores than non-BNPL users.

Download 2023 Alkami Data Telemetry Report: State of the Industry℠, Emerging Financial Institution Opportunities in an Uncertain Economy