Credit card companies are loosing customers to BNPLs. The usual life cycle of loan in a customer’s life starts from credit card. However, the new generations seem to have less preference to credit card. Baby boomers are the biggest holders of credit cards. According to data the credit card signing up in new generation is decreasing and these customers are now probably falling for alternatives including BNPLs. SPT sits right in between credit card and BNPLs as a barrier which is great. But what if credit card issuance at the source itself decreases. I think SPT and credit card companies should come with strategies for new customer acquisition and life cycle extension of existing customers. Also, from my experience customers are probably using other BNPLs after they have exhausted credit cards and so SPT is not helpful to them. We need to acquire these customers before they have exhausted their credit cards and not let them fall into the lap of BNPLs. That means one strategy at the introduction stage and one at the stage before credit card is exhausted. If this is not checked, in future there is going to be huge decline in credit card users eventually reducing SPT market. I see inconsistencies in products as well. The targeted customers are credit card customers (old generations have more credit cards), targeted products are high value hobbies and fashion items (more favourable for newer generations). Therefore, this inconsistency could one of the reasons it is still not growing as expected. Moreover, i might be wrong, but don’t you think people like the idea of having access to the additional cash as that is more visible and valuable but SPT does not provide additional cash unlike other BNPLs.These are just my opinion based on a brief research but please do not make decisions based on this. My research has various limitations.
SPT Price at posting:
$1.50 Sentiment: Hold Disclosure: Held
