It’s nearly Black Friday! In eCommerce, the five days from Thanksgiving to Cyber Monday are called the “Turkey Five”. These are the most active commerce days in the U.S. and for BNPL providers, also the most active days for BNPL activity.
As more financial institutions adopt BNPL to meet account holders’ needs, it is important for Bank BNPL providers to pay attention to the consumer insights and industry activity that emerge around the Turkey Five. During this time, consumers are more likely to try new BNPL products, increase usage, and develop loyalty to their existing providers (or switch).
Here are our predictions for 2024’s Turkey Five:
Last year, US shoppers spent over $16.6B online using BNPL plans for their holiday purchases. The majority of this loan volume was captured by third-party BNPL providers. Over the past 12 months, equipifi has seen a 740 percent increase in the number of financial institutions and a 33x increase in active users on its platform.
Third-party BNPL is in its watershed moment. Less than three years ago, the industry was still expressing doubt that BNPL would be a lasting payment preference. Now, third-party BNPL has seen a 461 percent increase in usage in the past 3 years in the U.S. alone. The payment method has matured through embedded partnerships with Apple Pay and Google Pay. Much like third-party BNPL experienced in the earlier years, Bank BNPL is about to have its first watershed moment too. And with third-party BNPL growth paving the way, Bank BNPL’s growth will take much less time.
When available, consumers prefer to use BNPL from their financial institution more than they would a third-party BNPL app like Affirm, Klarna, and Afterpay. In fact, equipifi’s data shows account holders use their credit union’s BNPL more than they use all third-party BNPL apps combined - and we expect this trend to continue in the coming days.
BNPL is about convenience. If consumers know where they can find the easiest, fastest, safest, and most cost-effective way to obtain extra short-term funding, they will use it. The key is to make sure they know bank BNPL is an option. Not only does this help them choose where to go for BNPL, it also deepens trust and loyalty with their financial institution.
When account holders use BNPL from their financial institutions, they continue to use it - and their usage grows over time. In fact, equipifi’s data shows that 79 percent of credit union members who utilize BNPL continue to engage with the service in their second year, with their loan activity increasing 38 percent year-over-year.
We expect account holders who try Bank BNPL for the first time this Turkey Five to have a similar rate of return usage. The reason lies with the simplicity of the product and the instant gratification that comes from receiving funds in their account with just a few clicks.
Are you excited to see what is to come for BNPL in 2024’s Turkey Five? Join me, Bryce Deeney (equipifi’s co-founder and CEO), and leaders from our partner credit unions for a post-Turkey Five debrief on 12/10. We’ll be doing a play-by-play on consumer insights, sharing Bank BNPL performance data, and discussing what this means for financial institutions in the coming year.
Hope to see you there!