The news: Forty-five percent of US consumers prefer using buy now, pay later (BNPL) for purchases rather than credit cards, per a survey conducted by Talker Research on behalf of Affirm.

Notable takeaways: More than three-fourths (77%) of Americans polled emphasized that their anxieties about the economy influenced their money management decisions.

• 41% of US consumers say fixed, predictable payments are important.
• 52% report having avoided certain payment methods due to worries about hidden fees.

This rise in BNPL favorability demonstrates a potential shift in consumer sentiment away from credit cards’ rewards incentives to BNPL’s fixed payments and zero-interest options.

Affirm’s hidden pitch: Within the survey, 57% of American consumers felt that longer-term payments with clear terms helped them make smarter decisions for larger purchases. Affirm is currently promoting 0% APR loans with select merchants to attract prime borrowers and cement consumer loyalty. 

Affirm stands to make significant returns with consumers drifting towards installment loans: barring its interest-free Pay in 4 program, Affirm’s longer-term installment plans may have up to 36% APR.

Our take: As the Trump administration tries to remake the American economy, sentiment has plummeted as consumers grapple with the fallout. 

Customers likely will flock to payment platforms that offer flexibility and clarity around payments as household budgets tighten. With consumers traditionally eschewing debt during times of uncertainty, time will tell if Americans will view BNPL as another form of debt to avoid during belt-tightening days or as a savvy way to break up large purchases.

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