Consumers are interested in options that help them manage their finances better. Many are turning to pay later plans for this reason. Installment plans linked to consumers’ existing cards are one option merchants need to consider.
The benefits aren’t just for consumers. Card-linked installment plans help merchants grow and keep things running smoothly despite changing consumer preferences. Notably, 57% of merchants think consumers will switch to competitors offering these plans, emphasizing the need for innovation. Moreover, 1 in 5 acquirers believe merchants are highly likely to switch to providers that allow them to offer these plans.
More than 70% of merchants prefer consumers use their existing general-purpose credit card for installments over other pay later programs. Likewise, consumers are increasingly likely to choose general-purpose card-linked installments for significant expenditures. This shows how effective these plans can be in supporting sales.
These insights are part of the “Innovations and Development of Card-Linked Installment Plans,” a PYMNTS Intelligence report produced with Splitit. Based on a survey of 4,993 consumers, 150 merchants, and 100 acquirers from August 8, 2023, to March 28, 2024, the report explores how merchants use card-linked installments to grow their businesses and ensure stable cash flows.
The report features seven charts of exclusive data and actionable insights acquirers and merchants can’t ignore. Download “Innovations and Development of Card-Linked Installment Plans” to learn how these payment plans can transform the game for merchants aiming to attract and keep customers and how catering to consumer payment preferences can drive growth.