A recent report from PYMNTS Intelligence titled “BNPL Fuels Essential Spending Surge on Amazon Prime Day, Walmart+ Week” compares data from this year’s special sales events of Amazon Prime Day and Walmart+ Week. PYMNTS Intelligence tracked the evolution of consumer behavior during these major sales and uncovered key insights for executives, retailers and consumers alike.
Sales events: a benefit for members, not an incentive for subscriptions
Most consumers view Amazon Prime Day and Walmart+ Week as an opportunity to get great deals on frequently purchased items, rather than an incentive to sign up for these paid memberships. Data shows that about 75% of shoppers attended these events primarily to find deals on products they regularly buy. However, these sales are not the main reason consumers subscribe to Amazon Prime or Walmart+.
According to the report, 80% of Amazon Prime subscribers cite free shipping as their primary reason for joining, with 57% specifically highlighting it as the most important factor. Similarly, 61% of Walmart+ members value free shipping, while 49% value grocery delivery. Only 30% of Walmart+ subscribers and 23% of Amazon Prime members joined because of the sales events themselves.
This suggests that while these events are attractive perks, they do not provide strong incentives for membership. There is an opportunity for Amazon Prime and Walmart+ to increase the impact of these sales to convert more non-subscribers into members.
Increasing BNPL usage among buyers
The use of buy now, pay later (BNPL) services increased significantly among shoppers during Amazon Prime Day and Walmart+ Week. This year, 5.2% of Amazon Prime Day shoppers used BNPL, up from 3.3% last year. During Walmart+ Week, the percentage was even higher: 7.2% of shoppers used BNPL, up from 5% in 2023. Although BNPL represents a smaller portion of total payment options, its popularity is growing, reflecting its appeal as shoppers take advantage of sales to stock up on essentials.
During Amazon Prime Day and Walmart+ Week, shoppers used a variety of different payment methods. The most common was debit cards, which 62% of Walmart+ Week shoppers and 52% of Amazon Prime Day participants used. This was followed by credit cards, which 46% of Prime Day shoppers used, compared to 43% during Walmart+ Week. Digital wallets were used frequently during Walmart+ Week, with 40% of shoppers using services like PayPal and Walmart Pay.
More and more shoppers who shop paycheck to paycheck are using BNPL
The increase in BNPL usage is particularly pronounced among consumers who live paycheck to paycheck. This year, 12% of Amazon Prime Day shoppers who are financially struggling used BNPL for their purchases, nearly double the 6.4% last year. During Walmart+ Week, about 14% of consumers who live paycheck to paycheck used BNPL, a significant increase from the 6.2% last year.
In contrast, BNPL usage remains low among shoppers who don’t live paycheck to paycheck: This year, only 2% used this option at both events. This pattern suggests that financially constrained consumers are more likely to rely on BNPL during sales to manage their spending, while those with more financial flexibility use other payment methods.
While Amazon Prime Day and Walmart+ Week offer valuable perks for existing members, they are less effective at attracting new subscriptions. The increasing reliance on BNPL among financially constrained shoppers highlights the importance of flexible payment options to meet consumers’ diverse needs. As these sales events evolve, focusing on these insights will be critical to improving membership strategies and increasing customer loyalty.
