Will This Holiday Season Mark the End of Layaway and Debit Cards?

An Insights in Marketing Study Explains Why More Gen Z Consumers Use Buy Now Pay Later Than Any Other Generation  

CHICAGO, Dec. 14, 2022 /PRNewswire/ -- As the holiday shopping season heats up, buy now pay later (BNPL) apps are a hot commodity with younger consumers. 

Insights in Marketing recently surveyed 1,000 consumers, ages 18-25, and conducted online focus groups to learn why more Gen Z consumers are drawn to BNPL than any other generation. 

The independent Insights in Marketing financial services study revealed 100% of survey participants discovered BNPL apps while shopping online. One in five respondents had tried BNPL, and 80% said they used these microloans more often in 2022 than in 2021.  

Which BNPL Apps Do Gen Z Consumers Use Most? 
Most Zoomers rely on word-of-mouth recommendations from friends and family members before trying BNPL, and then tend to use multiple BNPL apps or websites, mainly Afterpay (58%), Klarna (44%), Affirm (29%) and PayPal (27%). 

Why do Zoomers use BNPL? 
All respondents agreed quick approval and interest-free transactions are the main draw, and ranked other reasons: 

What do Gen Z consumers buy with BNPL apps? 
Younger consumers believe it's safer to use BNPL than a debit card online, and use BNPL to make a series of smaller, interest-free payments for larger purchases—usually apparel, technology, appliances/furniture, selfcare/cosmetics and travel.  

Why do Zoomers stop using BNPL? 
Most respondents limit BNPL use due to: 

• Concerns about overspending
• Buyers' remorse after impulsive purchases
• Difficult returns
• Delayed refunds
• Missed microloan payments

Most Gen Z consumers participating in the Insights in Marketing study are on a quest to build a solid credit history for future car and home loans, and prefer paying with a rewards credit card. However, many don't qualify for credit cards, or cannot afford the annual fees. 

Learn more about Gen Z spending habits:
https://insightsinmarketing.com/resources/blog/iim-study-explores-gen-z-spending-habits/.

Founded in 1989, Insights in Marketing is a research-based marketing consultancy representing global brands. Visit us at https://insightsinmarketing.com

Media Contact: Katie Wilson, Insights in Marketing
847.835.0500  
info@iimchicago.com
Download graphics at https://insightsinmarketing.com/iim-news-bnpl/

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SOURCE Insights in Marketing