Consumers are more likely to use BNPL for larger purchases if offered better rewards. A PYMNTS report surveying over 3,100 consumers found many choose credit card installments over BNPL due to the lack of reward programs and higher credit limits in BNPL options. Additionally, BNPL services are not as widely available in stores. The study revealed 38% of consumers want more attractive and accessible rewards in BNPL services. Some providers are addressing this need; for example, Sezzle introduced "Payment Streaks" in May, which advances users through loyalty tiers based on consistent on-time payments. However, not all initiatives have succeeded; Affirm discontinued its rewards program in February, and Afterpay ended its Pulse Rewards in January, hinting at a new loyalty program later this year. The evolving landscape of BNPL rewards could influence more consumers to consider it for larger purchases.
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