The remodeling industry is reshaping how they receive payments, turning to more flexible options in the current consumer market.
The rise of BNPL
As creative style trends change, so do financial trends. Home builders and remodelers have shifted how they can still attract more clients the answer may be payment plans. The buy-now-pay-later (BNPL) services have grown increasingly popular in consumer spending across all markets. According to a report from Morgan Stanley, BNPL loans financed 6% of e-commerce in 2024, a stark increase in the market from 2% in 2020. Affordability is no longer liquid cash on hand, but fitting a repayment plan into monthly finance budget.
Yielding these services for remodelers
As the new single family home market is softer, more homeowners are buying older homes or looking to remodel their current one. Financing these projects are still an important decision for clients. However the option of flexible payments may lead to more spending over time. Think of this —a client can either choose to pay for a standard material in remodeling if they have to pay immediately, but with a payment plan they could have the means to opt for a premium finish.
Fortune Business Insights suggests the BNPL market increase from USD 37.19 billion in 2024 to USD 167.58 billion by 2032. For contractors, getting ahead of this trend and offering options can increase the business’s success and visibility for clients.
