If the payment in installments free of charge is mainly seen as an incentive to consume, it is nevertheless used by many consumers for certain types of purchases. And at the top of these expenses, we find major household appliances (46%).
Payment in installments divides the French according to a survey conducted by the Cetelem Observatory (1). This service is seen as an incentive to buy immediately instead of postponing its purchase for 74% of respondents, and a large part of the population (61%) even thinks that it can encourage the acquisition of more expensive products… Despite everything, certain planned or unplanned purchases are often purchased using Buy now, Pay later, also called payment in installments at no cost.
According to the study carried out by Harris Interactive, household appliances (refrigerator, washing machine, oven, game console) are the first pole of expenditure in payment in installments. 46% of the French prefer it.
After the household appliances, we find household equipment. When we know that a convertible sofa can cost 1000 euros, we can easily imagine why 39% of the French will prefer to pay it over 3 or 4 months instead of disbursing the sum all at once. When it comes to travel or sports equipment, only 23% of French people prefer payment in instalments. Finally, 37% favor payment in three or four instalments free of charge for unexpected expenses and 36% for technological products. At the price at which a recent computer is sold, and in the era of telecommuting, these necessary goods can weigh heavily on the budget.
Mixed reviews
According to the results of the Cetelem study, 55% of the French believe that payment in installments is a one-time solution in the event of financial difficulty and in particular for contingencies. Payment method in its own right for the others (45%), the Buy now, pay later payment is perceived either as a facilitator in budget management (46%) or as a sometimes dangerous trap, which does not make it possible to realize of the total invoice amount (54%). Overall, the Buy now, pay later payment tends to make people spend more in the eyes of 41% of French people, while only 19% believe that, on the contrary, it makes them spend less.
Despite everything, the French do not totally condemn payment in installments. In fact, 59% of French people admit they can shun one brand in favor of another which would allow them to pay for their purchases in installments.
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(1) Survey conducted online by Harris Intercative for the Cetelem Observatory from February 7 to 10, 2022 on a sample of 1037 people representative of the French population aged 18 and over