For some time now, consumers have been moving toward demanding more frictionless payment methods across online and offline channels. The social distancing and sanitizing practices brought on by the pandemic proved to be the push that encouraged many consumers to try proximity mobile payments (paying for goods using a mobile phone as a physical POS) for the first time. Ecommerce retailers, not to be outdone, are finding ways to improve their transactions as well.

Buy now, pay later (BNPL) services have emerged in recent years as more retailers, including Walmart and Macy’s, began offering consumers financing options when checking out.

After the coronavirus pandemic forced issuers to adapt rewards, enhance forbearance, and build out digital tools to cope with a volume hit in 2020, they’re looking to reimagine their offerings in the future to add new customers and regain primary card status.

Buy now, pay later solutions are quickly gaining adoption as consumers look for new financing options and merchants aim to drive sales. But the industry is still unsettled as a number of firms are battling to lead the space, while card networks and issuers are looking to get involved too.

Digital installment plans are growing in popularity, particularly among more budget-conscious, younger consumers. In the past year, adoption of digital interest-free payment programs grew from 24% in Q1 2019 to 30% in Q3, per data from CivicScience.

Consumers are becoming more cognizant of their spending, some even considering financing high-ticket purchases in an effort to not spend all their money in one transaction.