Current study: Germans prefer to pay in installments

3 min
Verena Mai

Just over 70 % of Germans consider consumer loans. Even though consumers are open to taking out consumer loans or paying in installments, more and more retailers are benefiting from that compared to banks. According to the latest study by Credi2 “Consumer Behaviour Rethought”, one third of the respondents are sure to get better conditions directly at the shop. For the study the fintech surveyed around 1,000 Austrians in Germany about their shopping behaviour with regard to innovative payment methods.

Consumers are enjoying the financial flexibility that buy now, pay later models offer them when shopping. In particular, more expensive purchases, such as furniture, various household appliances, e-bikes or smartphones, are increasingly being financed with new payment methods. Especially the younger generation, of under 35 want to treat themselves to something spontaneously and therefore use flexible BNPL options.

Applying for a loan at the bank is "out"

When it comes to applying for a loan to finance a purchase in installments, the principal bank is out of the question for the majority of customers. Only 40% of those surveyed prefer the “traditional” way of applying for a consumer loan at the bank. The main reason why consumers shy away from the application process at the bank is that they no longer want to have a break between shopping and financing. A quarter of the respondents said that applying for financing at the bank is too cumbersome for them and that the approval takes too long.

More favourable conditions at the shop

Instead of waiting in line at their principal bank, customers prefer to find out during the purchasing process whether their application for financing has been approved. Various BNPL methods, such as instalment payments, revolving loans or subscription models, make this possible. Another reason why consumers like to take out financing in shops is that they assume that retailers will offer them more favourable conditions compared to the principal bank with regard to the amount of the credit line, flexible instalment amounts or the repayment period. This in turn enables the bank to create a new business model: embedded finance. Whether shopping in shops or online – banks act in the background and thus continue to maintain contact with the customer. 

Here you can download the study “Consumer Behaviour Rethought”.