NEW YORK—New data show more consumers continue to use buy now, pay later for everyday purchases.
As numerous analysts have told CUToday.info, every BNPL-financed purchase by a member is a transaction their credit union did not capture.
Consumers ages 35 and under comprise 53% of buy now, pay later users but just 35% of traditional credit card holders, according to LexisNexis Risk Solutions, NBC News reported.
“Many of those core BNPL borrowers have grown so comfortable using the installment loans for just-out-of-reach luxuries that they’re putting more everyday purchases on them as well,” NBC News said. “The shift adds to signs that fast-growing BNPL services, which let users break up transactions into several payments with little or no interest, are becoming a routine tool in young adults’ wallets as they adapt to higher prices.”
Change in Purchases
According to the report, apparel and accessories were the most popular product category among Millennial (ages 30-44) and Gen Z (18-29) users of the BNPL provider Afterpay in 2021 and 2022. But in 2023 it fell to fourth place behind “arts, travel and entertainment,” “home and garden” and “hardware,” according to data the company provided to NBC News.
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