BNPL is Important For Brand Loyalty Amongst Gen X and Millennials

 

May 1, 2024

Recent economic obstacles have led to younger Gen X and older millenials to seek buy now, pay later (BNPL) options, playing a “central role in their purchasing decisions.”

PYMNTS Intelligence surveyed more than 3,100 US consumers to highlight their behavior with BNPL options and how it influences their decisions when it comes to shopping for the study titled “The Credit Accessibility Series: BNPL’s Wide-Ranging Impact on Consumers and Merchants.

Among the findings, the study revealed that at least 28% of customers who are in between Gen X and Millennials born between 1980 and 1989, change their shopping habits when BNPL is not offered- they choose a cheaper product instead.

According to Pedro Bennasar, head of payment for Vestiaire Collective, the pandemic brought with it a lot of financial instability, which led to many consumers to seek financial flexibility rather than stop shopping altogether, which led to BNPL services to have an increase in demand.

In December, Senior director at Google Pay told PYMNTS that shoppers “demand payment choices that meet their budgeting needs”
failing to meet this demand clearly leads to changes in customer shopping behavior, and that they want more options
across more merchants.

Merchants should have in mind that while consumers are trying to be more financially literate, they still want products and
services that might be outside of their budget. Offering BNPL might be in their best interest.

Want to learn more? Check out PYMNT’s full write-up here.

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