![]() ![]() You may also have the option to pay an additional cost to fund 0% APR promotions, helping to further increase basket size and overall sales. 19 A medium- to longer-term installment offer that enables customers to pay for their purchases in 6, 12, or 24 monthly installments. 18 A short-term, interest-free installment solution that lets customers pay in 4 payments over 6 weeks. To give your customers even more choice, PayPal Pay Later includes two installment offers in a single integration. The availability of a BNPL option has a positive impact on the shopping experience, with 72% of BNPL users more likely to complete a purchase if a BNPL option is available. Installments are a flexible option that can help meet your customers’ needs for simple, clear and budget-friendly payments. ![]() 15 In fact, the generation with the most future potential may surprise you: The fastest-growing age group to adopt BNPL is US consumers over age 54. ![]() While their reasons for turning to buy now, pay later may be different, all generations use these types of payment options. Installment options help meet the needs of all demographics 14 While Gen Z’s use of BNPL is second only to millennials, with 49% having used it, 13 businesses may need to provide a more seamless experience to truly capture this generation’s interest. 14 They also have less patience for poor experiences, and are more likely to post a bad review after they’ve had one. Unlike other generations, Gen Z shops as much online as they do in-store. 12 They’ve also been quick to adopt buy now, pay later, with 56% saying they’ve used interest-free payment and installment services – more than any other generation. 11 That could be why they’re more concerned about their financial future than other generations. While the median weekly earnings of millennials aren’t too far behind their older cohorts, 10 millennials do have a lower disposable income. 9 These are the generations that are driving the digital transformation – and could be driving widespread adoption of new payment types. Together with Gen Z, the two make up 42% of the population. Younger generations are using new payment methods 7 Both these factors may help to explain why they’re looking to options like buy now, pay later installments – and adopting them at nearly as fast a rate as younger generations. Gen X also has the highest average student loan debt. 5 Some of this can be attributed to their life stage – for example, they’re more likely to own their home than those under age 35, 6 but may not have paid it off yet, as Baby Boomers may have. Gen X has the highest average debt of any generation. 3 Along with the fact that Boomers also increased their digital spending during the pandemic, 4 we could be seeing a rise in digital behaviors that contributes to the adoption of BNPL. The most surprising? Baby Boomer adoption of wearables, like smart watches, is actually projected to rise over the next few years. In fact, 50.3 million Baby Boomers, or about 70%, have smartphones, while 32.3 million have tablets. The traditional line of thinking that Baby Boomers simply aren’t digitally savvy may no longer be true. 2īaby Boomers are becoming more technologically savvy. By 2025, eMarketer predicts that Gen X and Boomers will make up roughly one-third of BNPL users. Shifting consumer habits among these generations are ushering in a new era of digital adoption. When you think of Baby Boomers and Gen X, you may think of traditional credit cards – but the times are changing. Digital adoption is accelerating among Boomers and Gen X ![]()
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