Generation Z, colloquially known as zoomers, is the demographic cohort succeeding Millennials and preceding Generation Alpha. Researchers and popular media use the mid to late 1990s as starting birth years and the 2010s as ending birth years. Most members of Generation Z are children of Generation X. Now, you can attract Gen Z customers with buy now, pay later (BNPL).
Gen Zs are less likely to own credit cards than their older counterparts.
Thanks to the 2009 CARD Act, credit card applicants under 21 have a difficult time acquiring a credit card. Also, many Gen X have experienced credit card defaults and even bankruptcy. They are not giving credit cards to their children. Also, age and ability to repay standards and mounting student debt are all obstacles keeping students, recent graduates, and younger millennials from being granted credit approval.
But the Buy Now, Pay Later option is increasingly appealing to this demographic.
Up to 87 percent of surveyed consumers between the ages of 22 and 44 expressed interest in a BNPL financing option. Additionally, 40 percent of millennials report having already utilized a BNPL option. BNPL allows young adults to purchase bigger ticket items ranging from $2,000 to $5,000. As opposed to having the money up front, they can pay it off in 4 months to 2 years on an average. This payment option makes it appealing to those young adults who don’t have a credit card.
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