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Will BNPL Send Gen Z Bankrupt?
BNPL is one of the fastest-growing platforms within Australian retail. Within two years, the schedule payment option has changed the way Aussies shop, both online and in-store. Younger customers, however, have embraced the service – but is it a good thing?
In the lead up to Retail Global Gold Coast 2020, Retail Global hosts small workshops for those who are after specific details on up and coming trends. At the Road to CX Success event, hosted by Retail Global, retailers receive the tools they need to improve overall CX, and how they can incorporate new tech to close the gap between retailer and consumer.
At the Road to CX event, Power Retail will offer in-depth insights about the Next Gen shopper, and how BNPL may affect them and retail in the future. BNPL platforms such as Openpay and Afterpay are an incredibly popular platform for the younger generation of shoppers and are a key target market in the retail industry. According to the findings, Gen Z (aged 23 and under) have an increased interest in saving when it comes to shopping, making BNPL an attractive option for Australian customers.
Are Gen Z Using BNPL More Than Others?
The survey conducted by Power Retail found that Gen Z has similar reasons for using BNPL as the rest of Aussie shoppers – these include spreading out a payment for more expensive products, for purchases they can’t afford at that exact time or for convenience’s sake. However, one in three young Aussie shoppers are scheduling payments for impulse purchases, a trend that’s on the rise for customers.
Gen Z are the first generation to be born into an age of smart devices, unlike Millennials, who were introduced to them in their pre or mid-teens. Much like the rest of us, they have their phones on them at all times. However, unlike the older Millennials and other generations, they’re far less concerned about data and security. When it comes to BNPL, though, they’re worried about missed payment late fees.
This means, of course, that credit cards are no longer the ‘it’ thing for shoppers. Consumers prefer using a service that doesn’t have expensive fees or hidden costs in the fine print. Of course, BNPL still has fees for late-payments, and some offer membership costs, but Gen Z are aware of what they’re getting into when they sign up.
In summary, Gen Z are embracing BNPL like never before, but they’re concerned about the future of their personal finances. As such, they’re not making calculated decisions about what they buy, or whether they can afford the product they’re planning to purchase. What they are concerned about, however, is whether they can afford BNPL in the long run.
How Can This Affect Retailers?
In order to evaluate whether this will affect retailers in both the short-term and in the long run, it’s essential to weigh the pros and cons. Retail Global’s Road to CX Success provides in-depth analysis and advice for retailers for the future, and it’s too good to miss out on.
Join the Power Retail team and other excellent retailers as they discuss the future of retail, analyse the latest trends, and how your business can reach its profit possibilities.
For more information, and to register for a spot, be sure to check out the three locations that Retail Global will be visiting.
Register for Sydney
Register for Melbourne
Register for Brisbane
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