BNPL Surpasses Credit Cards in Gen Z Holiday Shopping Habits

  • Gen Z used BNPL more than credit cards during holidays, survey shows
  • J.D. Power surveyed 4,300 US consumers for the study
  • 54% of Gen Z used BNPL vs 50% using credit cards during holiday season
  • For full year, 44% of Gen Z used BNPL, 50% used credit cards
  • Banks and credit card networks offer BNPL products too
  • American Express and JPMorgan Chase received highest marks from consumers

A recent J.D. Power survey revealed that Gen Z consumers are more likely to use buy now, pay later (BNPL) options than credit cards during the holiday season. The study polled around 4,300 US consumers, including 1,000 Gen Z members about their spending habits in 2024. During the holidays, 54% of Gen Z used BNPL, while 50% opted for credit cards. For the entire year, 44% of Gen Z chose BNPL and 50% used credit cards. Among all respondents, 32% utilized BNPL in 2024 (up 4 points from 2023), while credit card usage dropped to 61% (down 6 points). Sean Gelles, J.D. Power’s senior director of payments intelligence, advised against generalizing the trend but acknowledged the rise of BNPL during peak spending periods. Legacy banks and credit card companies like American Express and JPMorgan Chase, which offer BNPL products, received the highest ratings from consumers.

Factuality Level: 8
Factuality Justification: The article provides accurate information based on a J.D. Power survey about Gen Z’s spending habits and compares BNPL usage to credit cards. It also includes quotes from an expert in the field and mentions the highest-rated companies for each category.
Noise Level: 3
Noise Justification: The article provides relevant information about a recent survey on Gen Z’s spending habits and compares the usage of buy now, pay later to credit cards. It also mentions the satisfaction rates of different companies offering these services. However, it lacks in-depth analysis or exploration of long-term trends or consequences of this shift in consumer behavior.
Financial Relevance: Yes
Financial Markets Impacted: No
Financial Rating Justification: The article discusses a J.D. Power survey on consumer spending habits, specifically focusing on the use of buy now, pay later services among Gen Z compared to credit cards. This topic is related to financial topics as it involves payment methods and consumer behavior. However, there isn’t any direct impact mentioned on financial markets or specific companies.
Presence Of Extreme Event: No
Nature Of Extreme Event: Other
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: There is no extreme event mentioned in the article. The topic discusses a shift in consumer spending habits among Gen Z towards buy now, pay later options during the holiday season.

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