Most bankers either do not have a strong opinion on offering buy now, pay later products or don’t see their value, although most banks that already offer BNPL see it as a revenue generator, according to a new survey by American Banker.
The survey found that only about a third of bankers (32%) agreed or strongly agreed with the statement “BNPL is good for banks as a whole.” Nearly half (46%) didn’t have an opinion on the subject, while the remainder either disagreed or strongly disagreed. Respondents from national banks or midsize/regional banks were more likely to view BNPL in a favorable light than respondents from community banks and credit unions.
Institutions that offer BNPL products cited “generates revenue” and “helps us stay competitive” as the top benefits, according to American Banker. Other top-cited benefits include using BNPL to enable cross-sell of other products and services, helping to build relationships with merchants, and facilitating embedded finance with partnership ecosystems. Roughly two in three bankers (66%) said BNPL was delivering value to their institutions.
