Despite a growing chorus of concern about runaway consumer debt, customer satisfaction when using Buy Now Pay Later (BNPL) services has surged in the U.S., a J.D Power survey has revealed.
According to the newly-released J.D. Power 2024 U.S. Buy Now Pay Later Satisfaction Study, easy account review, security and reasonableness of terms are among the top drivers behind the positive sentiment. In addition, the study finds it is financially healthy consumers that are the most satisfied with BNPL services.
The study reveals that BNPL customers classified as financially healthy represent 21% of all BNPL users and have the highest overall satisfaction (731) with such services. Consumers in the financially vulnerable category account for 32% of BNPL usage and have a considerably lower overall satisfaction score (593).
Speaking on the findings, Miles Tullo, managing director of banking and payments at J.D. Power said: “The BNPL segment has grown quickly and many of the brands in the space are new. Consumers are generally most satisfied with the BNPL plans offered by their credit card issuers, but experiences vary quite a bit by brand and some of the newest providers are receiving the greatest increases in satisfaction scores.”
The top three key performance indicators with most significant influence on customer satisfaction are ease of choosing repayment options; ease of managing payments; and ease of reviewing purchases and transactions. These indicators were met between 53% and 62% of the time, suggesting that many providers have room to improve on account management functions.
Among the rankings, Plan It by American Express came in highest in BNPL satisfaction, with a score of 695 while My Chase Plan (686) ranked second and Citi Flex Pay (676) ranked third.
The J.D. Power U.S. Buy Now Pay Later Satisfaction Study, now in its second year, is part of a group of four interconnected syndicated studies focused on the various forms of POS payment options. Its sister studies include the POS Choice Satisfaction Study; Debit Card Satisfaction Study; and Digital Wallet Satisfaction Study
