As consumers turn to installment plans to buy the products they want under continued budget pressure, many are turning to buy now, pay later to purchase their go-to health and beauty products. (BNPL).
Look at the numbers
For studyingTracking digital payment takeovers: What BNPL needs to win broader adoptionPYMNTS Intelligence surveyed more than 3,100 consumers in June to understand what features they expect from postpaid plans and how BNPL is meeting these expectations to improve the use of credit card installment plans. We investigated whether this rate could be achieved.
The results revealed that around one-third of BNPL users take advantage of the option to purchase health and beauty products in installments.
Data in context
This finding comes as consumers, feeling continued financial pressure, shift more spending into these consumables categories.
walmart told investors in its fiscal 2024 fourth-quarter earnings report on Tuesday (Feb. 20) that health and wellness sales were particularly strong during the period, with mid-teens growth in the U.S. year-over-year. It was pointed out that it was shown. Additionally, the category was the overall driver of sales growth in the quarter, contributing to the company’s domestic comparable sales growth of 4%.
Walmart isn’t the only major retailer to see this trend. In an earnings conference call earlier this month, Amazon CEO Andy Jassy said the e-commerce giant’s nonperishables business, which includes “consumables, canned goods, pet food, health and beauty products, and pharmaceuticals,” was “very weak.” “We are increasing our position at a healthy pace,” he said.
With retailers like Walmart and Amazon reporting increased health and wellness sales, BNPL is emerging as a tool to meet consumer needs and drive the retail industry’s continued expansion.
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