Squeezed by inflation and rising costs, American consumers are increasingly turning to Buy Now Pay Later “Pay in 4” plans to manage their finances, and they overwhelmingly want regulators to keep their hands off the product, according to a new nationwide survey released by the Financial Technology Association.
The survey found that 91% of “Pay in 4” users and 77% of all U.S. adults believe the plans have had a net positive impact on consumers. Among users, 95% said they are satisfied with their experience, 88% view the plans favorably, and 78% would recommend them to friends or family.
Why it matters: The findings arrive as consumers grapple with mounting affordability pressures. More than 3 in 5 Americans (61%) believe the economy has worsened over the past three years, and inflation ranked as the most important issue facing U.S. adults, cited by 47% of respondents. Against that backdrop, 80% of adults said access to flexible payment options is important, including half who called it very important.
The credit card comparison: The survey draws a sharp contrast between BNPL and high-interest credit cards. Among “Pay in 4” users, 87% said the plans have helped them avoid relying on high-interest cards, and 74% believe the plans are better for their financial well-being than those cards. The comparison is personal for many respondents: 65% of users reported having had trouble paying off high-interest credit card debt, and 68% of that group said the debt took a significant toll on their financial well-being.
When facing an unexpected expense they could not cover out of pocket, users said they would reach for a “Pay in 4” plan (37%) before withdrawing from savings (24%) or using a credit card (31%).
The policy angle: Nearly 9 in 10 users (88%) and 75% of all adults agreed that elected officials should protect consumers’ access to “Pay in 4” plans as a valuable financial tool. The FTA said it welcomes regulation that reflects protections already in place at leading firms while preserving consumer access.
The survey included an oversample of BNPL users for a total of 965 “Pay in 4” users, with a national margin of error of plus or minus 2.3%.
