Affordability and Budget Control Drive Adoption Among Gen Z and Millennials

  • Half of shoppers plan to use BNPL this holiday season
  • Affordability and budget control are the top reasons for using BNPL services
  • Gen Z and millennials lead the way in adopting BNPL
  • BNPL leads to a 91% higher average order value for enterprises, 62% for small businesses
  • 47% of U.S. adults who used BNPL faced financial hardships
  • 23% of users exceeded their holiday budget, 16% missed bill payments after using BNPL

Buy now, pay later (BNPL) services are becoming increasingly popular among shoppers, with affordability and budget control being the main reasons for their adoption, according to a PayPal survey. Gen Z and millennials are leading the way in using these services during the holiday season. Last year, Gen Z used BNPL more than credit cards for holiday shopping, marking a first for J.D. Power survey. Offering BNPL options can lead to a 91% higher average order value for enterprises and 62% higher for small businesses, making it a crucial advantage. However, some users struggle with installment payments, as 47% of U.S. adults who used BNPL faced financial difficulties, with 23% exceeding their budget and 16% missing bill payments after using the services.

Factuality Level: 8
Factuality Justification: The article provides relevant information about the increasing popularity of buy now, pay later (BNPL) services among Gen Z and millennials during the holiday season. It cites sources such as PayPal’s report, Invoice Home survey, and J.D. Power survey to support its claims. However, it also mentions potential issues with BNPL usage like financial hardships faced by some users. The information is mostly accurate and objective, with a few minor details that could be considered tangential.
Noise Level: 3
Noise Justification: The article provides relevant information about the increasing popularity of buy now, pay later (BNPL) services among Gen Z and millennials during the holiday season. It also mentions some potential drawbacks of using these services. However, it could benefit from more in-depth analysis or expert opinions on the long-term implications of this trend.
Financial Relevance: Yes
Financial Markets Impacted: Buy now, pay later industry
Financial Rating Justification: The article discusses the increasing popularity of buy now, pay later (BNPL) payment methods among Gen Z and millennials during the holiday season, impacting consumer behavior and potentially affecting financial services companies such as PayPal.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: There is no extreme event mentioned in the article.

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