More than half (53%) of consumers would prefer to use a Buy Now Pay Later (BNPL) option with existing credit cards instead of opening new lines of credit, according to new data by credit-card-based instalment payment solution, Splitit.

The survey also showed most consumers prefer making monthly over bi-weekly payments and prefer longer terms for larger purchases. Additionally, 58% of consumers anticipate their credit card spending to be the same or more than they did in 2021.

The survey, Australia: Consumer Perspectives: Credit Cards and Buy Now Pay Later, found six in 10 respondents (60%) would prefer to make instalment payments monthly on purchases over $500. While 69% of those surveyed are fine with four or fewer payments for purchases under $300, 64% favour more than four payments for a $500 purchase, and 80% want more than four on purchases of $1,000 or higher. Also, 60% of Australian credit card holders plan on using a BNPL service within the next 12 months.

As shoppers think ahead to making larger purchases and considering using a BNPL or instalment plan on purchases over $1,000 in the year ahead, several categories stand out to make gains. Over half would make purchases on home furnishings (57%) or home improvement (51%). Beyond the home, other top categories are travel (51%), healthcare expenses not covered by insurance (50%), automotive accessories and repair (50%) and luxury items (47%).

Splitit enables consumers to use the balance on their existing credit cards to pay for higher-ticket purchases over time without new financing, interest or fees. The company attracts higher-value shoppers willing to spend more using the flexible platform.

“Despite the discussions around the decline in credit card use, we’re continuing to see continued growth on our platform, including many key categories around the home, fitness and sporting goods, jewellery and luxury,” Splitit interim CEO, John Harper said.

“From what we’re seeing so far in the past few months, 2022 will continue to be a year where people will be spending on the home and themselves. I also expect spending to shift eventually as more people are heading back to work as people upgrade their wardrobe and accessories.”

Interestingly, the survey found 65% of respondents feel credit card perks – such as cashback, points or miles – were important, and 36% say it’s the primary reason for using their credit cards. Because consumers who choose to pay in instalments with Splitit are still using their credit cards, they continue to receive the same points or miles that they typically earn with that card.