Consumers are increasingly seeking financial flexibility, and card-linked installment plans are emerging as a popular solution. This trend is not just beneficial for consumers; merchants stand to gain significantly by adopting these innovative payment options. A recent report from PYMNTS.com highlights that 57% of merchants believe consumers will switch to competitors offering card-linked installment plans, underscoring the urgency for businesses to adapt. The report, based on a survey of nearly 5,000 consumers and over 150 merchants, reveals that more than 70% of merchants prefer consumers to use their existing credit cards for installments rather than alternative pay-later programs. This preference aligns with consumer behavior, as many are inclined to opt for card-linked installments for larger purchases. The report also delves into the unmet demand for installment solutions among merchants and analyzes trends in the pay-later space, providing actionable insights for acquirers and merchants looking to innovate and grow in a competitive landscape.
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