How Young Shoppers Are Using Buy Now, Pay Later

When it comes to credit, Millennials and Gen Z prefer BNPL

Let’s face it: Millennials and Gen Z get lumped together a lot. But they’re different. Gen Z is younger and just starting out on the financial journey of adulthood. Millennials are approaching middle age. They’ve been working (and potentially saving) much longer – which could mean more financial stability.

But they do have one big thing in common: BNPL usage. Almost 75% of BNPL users in the U.S. are Millennials and Gen Z.¹

Gen Z says “no” to traditional credit cards

Many Gen Zers are just starting out in their careers and tend to be averse to taking on debt by using a credit card. 24% of Gen Z users reported using BNPL to avoid revolving debt.² With its no interest, no late fees model for short-term offers, BNPL is the perfect fit.

Millennials and Gen Z use BNPL as a budgeting tool

Gen Z is typically using BNPL to help spread out the cost of goods, which allows them to buy the items they love while helping them budget accordingly. Millennials do that too, even if they have the resources to buy-in-full, paying overtime with no interest is a financially savvy way to help them budget. 77% of Millennial and Gen Z BNPL users say that it helps them budget and manage their cash flow.³

Retailers should know: not having BNPL could cost them

If Millennials and Gen Z are loyal to something, it’s BNPL.

• 79% of Millennials and Gen Z BNPL users are more likely to shop at a merchant again if offered a buy now, pay later option.³ And on the flip side, they are quite willing to take their money elsewhere if the option isn’t available.
• 71% of Millennial and Gen Z BNPL users abandoned a purchase due to the lack of BNPL availability.⁴

PayPal can help bring Millennial and Gen Z BNPL users to you

Our suite of Pay Later products is already seeing high adoption by Millennials and Gen Z:

• Over half of Pay in 4 sales come from consumers under 40.⁴
• Three-quarters of Millennial Pay Later users are repeat buyers.
• 65% of Gen Z customers are repeat users.⁴

Help Millennials and Gen Z buy with confidence with Pay in 4.