Retailers can cash in as credit cards continue to fall out of favor

Tgenerational change causing migration from credit postcards The transition to alternative payment methods in the retail sector is already changing consumer buying patterns, and merchants need to be one step ahead. This is reported by Deko, the Buy Now, Pay Later (BNPL) multi-loan platform.

A recent survey found that less than half of Gen Z consumers have credit a map representing huge demographic changes compared to older age groups. It is reported that 61% of Millennials, 65% of Generation X and 81% of Baby Boomers have at least one card. The same study also found another key difference among Gen Z consumers who actually use credit card, 53% is redeemed from the total balance every month.

decline credit the use of the card, however, is not reflected by a decrease in the level credit motivated purchases are just the opposite, as young consumers turn to BNPL, who appreciate its flexibility. Gen Z adoption rates are expected to rise from 36.8% in 2021 to 47.4% in 2025.

Melanie Vala, commercial director of Deko, said: “This increase in demand for BNPL is not surprising given the flexibility and convenience of BNPL’s financial solutions. The Generation Z and the Future of Retail report also indicated that this demographic wants the process to be as simple as possible.”

BNPL is a convenient alternative payment method for many as it allows customers to spread the cost of their purchase in installments. This gives many customers greater access to products that they otherwise might not have been able to afford upfront. In addition, unlike traditional forms creditapplications for financing with BNPL products are interactive and simple, meeting the demand for a more streamlined shopping experience.

Melanie continued: “Retailers maybe capitalize about changing consumer needs through partnerships with BNPL providers, especially those that offer user-friendly application forms. Best-in-class forms use simple language and guide consumers through everything, so collecting personal, location, and employment data is a fast and accurate process. This helps you maintain a great customer journey and also eases the financial burden associated with paying upfront for purchases.”

Getting potential customers to your store is a key priority for everyone retailers and BNPL maybe help as customers will seek outside those stores that offer their preferred payment options. However, merchants must also increase their conversion rate at the same time if they want to make a significant impact on sales. Abandoned carts are one of the biggest problems merchants face right now, with the current rate across all industries at around 70%.

Providing flexible payment options that meet the convenience needs of your customers will help solve this problem. This is because being able to split the cost of purchases over an agreed-upon period of time gives your customers more financial confidence by reducing fluctuations and rejections prior to checkout.

Melanie concluded: “Giving more flexibility and convenience to shoppers with BNPL options is unique in that it helps you reach more customers while also reducing cart abandonment rates. So it’s no surprise that buying now, paying later has become invaluable to many sellers in today’s macroeconomic environment.

Millennials and Generation Z have a huge impact on the retail industry and make up the majority of the global consumer market. By providing options such as “buy now, pay later”, sellers not only protect themselves from competitive pressures, but also maybe same capitalize to the ever-growing buying potential of the younger generation and set ourselves up for lasting commercial success.”