I happened to be additionally interested to comprehend as to what extent users among these apps utilize other products that are financial complements; for instance, “buy now, pay later” products.
While by no specific BNPL providing is principal, 48% of participants reported making use of among the named BNPL services for the purchase in past times month (a lot higher as compared to basic populace).
Users of a banking app or of money App had been almost certainly going to purchased a BNPL product vs. Venmo users, likely driven by demographic differences of Venmo users (generally skew higher income/higher credit history).
Finally, for the placement of customer fintech as providing better / cheaper / more that isвЂtransparent to customers, I happened to be wondering as to the extent users among these apps still relied on legacy “alternative financial services” — as well as the reaction ended up being surprisingly high.
App Customers Nevertheless Utilize “Alternative” Financial Services
The reaction price for several among these AFS items is extremely above what exactly is observed in the FDIC’s Economic Inclusion study (2019, carried out in person or via phone), which reported simply 1.5% of households making use of payday advances, 1.3% making use of pawn loans, and 11.9% utilizing cash purchases, by way of example.
With this concern alone, it is uncertain in my experience if these answers are as a result of sampling frame/response bias, or if perhaps users of fintech apps are actually making use of alternate monetary solutions at such high prices. (For “check cashing,” it is possible participants interpreted this to incorporate check that is remote, in the place of fee-based check cashing.)
Continue reading “App Users More Prone To Purchase Now, Spend Later”