The landscape of consumer credit is rapidly changing, influenced by innovations like embedded finance and buy now, pay later (BNPL) options. This article discusses how these developments have made credit products more accessible and popular among consumers, particularly for essential purchases such as groceries. A significant 52% of consumers have used credit for grocery purchases in the last 90 days, highlighting a shift in spending habits. The report reveals that consumers choose credit products based on various factors: rewards programs are crucial for credit card users, while familiarity drives BNPL adoption, and trust is paramount for personal loan users. Moreover, credit cards are often favored for their convenience and rewards, whereas personal loans are typically used out of necessity. The findings indicate that consumers are increasingly relying on credit for both everyday essentials and larger purchases, showcasing the evolving motivations behind their credit choices in today's economy.
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