The news: Younger consumers increasingly choose a merchant based on buy now, pay later (BNPL) availability, per a PYMNTS Intelligence report.

• 62% of millennials and 49% of Gen Zers say BNPL influences their choice of merchant for travel, compared with 5% of baby boomers.
• For food delivery, 44% of millennials and 43% of Gen Zers say BNPL affected their merchant choice.
• And 55% of Gen Zers consider BNPL before selecting medical and dental providers.

What this means: Merchants and medical providers’ payment offerings are becoming a key factor for where younger consumers’ spend, especially for younger consumers. 

BNPL users who lean on the tool frequently for everyday expenses are most likely to be influenced by BNPL availability, with up to 87% saying installment offerings shape where they shop. Occasional BNPL users said the feature influenced their purchases up to 63% of the time. 

Implications for BNPL providers: BNPL is a tool that can increase stickiness for younger consumers and highly active installment users. Integrations at the POS and ecommerce can help lift conversions from users who otherwise wouldn’t have the confidence to transact.