Consumers are increasingly seeking flexible financial options, leading to a surge in the popularity of pay-later plans, particularly card-linked installment plans. These plans not only benefit consumers but also present significant advantages for merchants looking to enhance customer loyalty and combat competition. A recent report by PYMNTS.com, based on a comprehensive survey involving nearly 5,000 consumers and 150 merchants, reveals that over 70% of merchants prefer consumers to use their existing general-purpose credit cards for installments. This preference aligns with consumer behavior, as many opt for card-linked options for larger purchases. The report highlights the urgent need for merchants to innovate their payment offerings, as 57% believe consumers may switch to competitors that provide these plans. The insights gathered underscore the critical relationship between flexible payment options and consumer loyalty, suggesting that merchants who adapt to these trends can drive growth and ensure stable cash flows in an evolving market.
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