A study of 275,000 customers found that the option to pay in installments increased revenue — but was used most by financially constrained shoppers. As “Buy Now, Pay Later” (BNPL) rapidly gains popularity, many retailers wonder about what this means for their bottom line. New research analyzed the purchase behavior of 275,000 consumers to understand BNPL’s effect on consumer spending. The researchers find that BNPL drives both an increase in purchase likelihood and 10% larger basket sizes.