Buy now, worry later
For younger generations, ‘buy now, pay later’ (BNPL) has gone from niche to normal.
What was initially used as a way to pay for big-ticket items or holidays has now become a one-stop shop for daily essentials.
One Gen Zer we spoke to jokingly says she uses BNPL for take-out because she’s “broke and hungry”. Despite working in a full-time corporate job, she lives in one of the most expensive cities in the world, meaning her monthly salary is spent covering basic necessities, such as rent and bills.
TBC
The future of commerce?
Gen Z consumers are increasingly turning to BNPL services. A generation after ‘instant gratification’ can have products now, rather than when they can afford them. It helps them spread the cost over time, helping with everyday budgeting. And, it’s easy access.
How can your brand leverage these insights?
Shopping experiences don’t have to be identical – but they should be parallel.
Consistency is key across all customer touchpoints. Ensure you're present where your customers are through omnichannel engagement. Since Gen Z blends the digital and physical worlds, offering a cohesive experience – from content, to checkout, to post-purchase – is vital.
If BNPL does have a future in eCommerce, it needs to be regulated.
The lack of awareness around the damaging effects of BNPL could be fatal for today’s young consumers. Brands and eCommerce sites have a responsibility to lead with ethics here.
In the same way that TikTok has introduced regulatory measures around triggering searches, brands must consider warnings or explicit information about the ways BNPL can impact things like credit ratings.
Money just isn’t going as far as it used to.
44% of US and 43% of UK Gen Zers say the cost-of-living crisis is impacting them. As a result, 45% are searching for discounts every single time they shop.
Offering incentives is a tried, tested and successful method to capture the spend of students when they have less disposable income than ever. We can help with that.
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