Pay later options have transformed the retail landscape, particularly appealing to younger consumers who favor instant gratification. Unlike traditional credit, these plans allow users to split purchases into manageable installments, often without fees or interest. A recent PYMNTS Intelligence report reveals that over half of surveyed consumers utilized some form of split-payment option in the last year, with a notable 65% of Gen Z and millennials engaging with these services. The report identifies two distinct user categories: "necessity users," who rely on BNPL for essential purchases, and "choice users," who opt for it to manage cash flow effectively. Interestingly, while credit cards remain the most common credit form, BNPL has surged in popularity, particularly for everyday items among younger generations. Experts suggest that the combination of convenient digital experiences and the appeal of avoiding debt is solidifying pay later's role in the future of consumer finance.
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