Splitit finds over half of UK credit card holders plan to use Buy Now, Pay Later in 2022

- Over half of UK credit card holders (54%) plan on using a Buy Now, Pay Later (BNPL)1 service within the next 12 months.

- 46% agree using a BNPL service is a smarter way to manage their finances.

- In the next year, a fifth (20%) plan to use a BNPL service over four times.

- Just under half (49%) agree they prefer a BNPL service that works with their current credit card(s).

LONDON, Feb. 2, 2022 /PRNewswire/ -- Today Splitit (ASX:SPT, OTCQX:SPTTY), the company empowering shoppers to use their credit cards to pay in instalments, shares new data which reveals the majority of UK credit card users are planning to use Buy Now, Pay Later (BNPL)¹ services as a smarter way to manage their finances. 

The survey, UK Consumer Perspectives: Credit cards and Buy Now Pay Later, investigates credit card holder's attitudes towards spending, specifically around BNPL. The data shows that over half of UK respondents (54%) are planning on using BNPL services in 2022, with almost a fifth (20%) planning to do so on four or more purchases in the next 12 months. When asked whether they consider BNPL to be a smarter way to manage personal finances, 46% agreed or strongly agreed that it is.

The insights also indicate that credit cards are used by consumers as part of a responsible approach to managing their finances, with 28% owning one to help build credit and 43% paying off the full outstanding balance each month. Further, almost half (49%) of those surveyed agree they'd prefer to use BNPL that uses their existing credit card with 63% saying they prefer to have the option to pay monthly.

While 54% of those surveyed are fine with four or fewer payments for purchases under £300, 67% favour more than four payments for a £500 purchase, and 86% want more than four on purchases of £1,000 or higher. 

As the market's only credit-card-based installment payment solution, Splitit enables consumers to spend smarter and better using the balance on their existing credit cards to pay for higher-ticket purchases over time without new financing, interest or fees. The company attracts higher-value shoppers willing to spend more using the flexible platform. In fact, the survey shows 53% of credit card holders would spend more with a merchant if they could pay over time. 

As they think ahead to making larger purchases with a value of over £1,000, several categories in particular stand to make gains by offering a BNPL solution:

• Half of respondents would make purchases on home improvement (51%) or home furnishings (52%).
• 44% would use BNPL for travel purchases.
• Over two fifths (42%) would engage a BNPL service for healthcare not covered by the NHS.
• 41% would buy automotive accessories and repair using BNPL.

"The rise of online shopping has empowered consumers to become more financially aware, giving them easier access to tools to help them more effectively manage their money," said John Harper, Splitit's Interim CEO. "With so many shoppers planning to use BNPL services, I expect 2022 to be the year of the financially savvy shopper, innovatively managing money to maximise personal benefit."

In other findings, the survey revealed that 74% are happy with their credit cards, and 58% see credit cards as part of a healthy approach to personal finances. Also, 56% would use their cards more often if they had a lower interest rate, and 56% would likely use their cards if they could pay in smaller, interest-free instalments. 

Interestingly, the survey found 29% of respondents feel credit card perks - such as cash back, points or miles - are important. Because consumers who choose to pay in instalments with Splitit are still using their credit cards, they continue to receive the same points or miles that they typically earn with that card.

Harper added "There has been much debate about the decline of the credit card and its role in the future. These results show that for many financially savvy consumers there is still a place for the credit card. This trend is mirrored in the usage and growth on our own platform."

Notes to editor
1) Buy Now, Pay Later, also known as instalment payments

Methodology 
Attest conducted the survey on behalf of Splitit in October 2021 using a sample pool of 1,000 UK adults to build a study of credit-card holders. The survey was constructed to form a representative sample of the UK working population from ages 18 to 64, with 49% male and 51% female.

About Splitit
Splitit is a global payment solution provider that enables shoppers to use the credit they've earned by breaking up purchases into monthly interest-free installments using their existing credit card. Splitit enables merchants to improve conversion rates and increase average order value by giving customers an easy and fast way to pay for purchases over time without requiring additional approvals. Splitit serves many of Internet Retailer's top 500 merchants and is accepted by more than 3,000 eCommerce merchants in over 30 countries and shoppers in over 100 countries. Headquartered in New York, Splitit has an R&D center in Israel and offices in London and Australia. The Company is listed on the Australian Securities Exchange (ASX) under ticker code SPT. The Company also trades on the US OTCQX under ticker codes SPTTY (ADRs) and STTTF (ordinary shares).

Contact Information
Brian Blank, Splitit
brian.blank@splitit.com 

Jordan Abrey, Missive PR
splitit@missivepr.co.uk 

Logo - https://mma.prnewswire.com/media/1550084/Splitit_Logo.jpg