In their second European study, FLOA and Kantar Institute highlight the growing importance of flexible payment options in the consumption habits of Europeans. At a time when budget control is becoming essential in the face of inflation and the demand for better quality or more sustainable products is increasing, flexible payment options are becoming a new consumer tool.
43% of Europeans say they use payment facilities such as instalments and/or deferred payment. The study reveals that French, Spanish, and Portuguese consumers seem to be the most adept at using instalments: almost one in three consumers use them on a recurring basis. This represents an average of 32% of the population in these three countries. In Germany and Austria, deferred payment appears to be the preferred method of payment, with more than one in two consumers (59.5%) saying they use it on a recurring basis.
European consumers are looking for more diversity in payment solutions
According to the study carried out among Europeans by FLOA and the Kantar Institute, 30% of consumers consider payment methods to be an important choice criterion when choosing a retailer, almost as much as the reputation of the retailer itself (32%). In France, 7 out of 10 consumers seem to be ready to change brand in order to benefit from payment solutions in several instalments or deferred payment. Furthermore, 50% of European consumers surveyed consider the lack of payment facilities to be an obstacle to purchasing, whether online or in physical shops. Finally, for 6 out of 10 Europeans, the obligation to download a mobile application to complete a purchase is a criterion for abandoning a shopping basket.
Payment facilities help to cope with unexpected expenses
For almost half of the Europeans surveyed, payment options are a solution to cope with rising prices: 44% plan to use these solutions to better manage their budget in the current economic situation. This trend seems to be even more pronounced in countries where BNPL functionality is common, such as France (55%), Spain (58%) and Italy (62%). More than half of the users of these payment options (58%) also believe that they promote more responsible consumption. This impression is even more pronounced in Italy and Germany with 64% of respondents.
Finally, the study shows that Europeans use instalment options in a considered way. They are mainly used to deal with unexpected expenses, such as household appliances for 39% of respondents or home-related expenses (31%). Pay-as-you-go options are also popular for "pleasure" expenses, such as high-tech products (38% of Europeans) or travel (35%). In France and Spain, they are mostly used to finance travel, with 44% and 40% of users respectively.
Method :
Kantar study for FLOA "Consumption trends and usages of payment in Europe" conducted in November 2022. It analyses nine countries: France, Spain, Belgium, Italy, Portugal, Germany, the Netherlands, Austria and Luxembourg.