Why Gen Z Is Hooked On Buy Now, Pay Later? Check Here

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The growing dependence on the digital realm in our modern lifestyle brings with it a mix of boons and banes. The encouragement to use digital payment methods is gaining importance, also because of the convenience offered to the customers and especially to the GenZ population. The young adults in the age group of 16-22 years, wish to live a carefree life, without any worry about managing their finances and expenses. Much of the population in this age category don’t have credit card facilities available and financially depend upon their parents, hence an alternative option of buy now pay later has become popular among them. 

The BNPL model's appeal is heightened by the fact that it doesn't require consumers to have an employment history or a strong credit score, moreover this option allows the user to buy anything and pay no interest charges if they clear their dues within the interest-fee period. A recent user-generated poll on Hunch, a social discovery app, dives into the question- why do GenZs use the BNPL option the most?

Out of 2000, 34.2% of the GenZ voters chose the money crunch as a major reason for them to use the pay later service. Gen Z voters turn to these options when navigating tight budgets, using them as a tool to manage their expenses flexibly. Another major portion of 29.2% of voters cited a love for travel & food as the main motivation, highlighting the urge to enjoy life's pleasures, even when immediate funds are limited. Interestingly, 26.9% of respondents don’t use the pay later alternative, suggesting their dependence on traditional payment methods or their optimum financial management. The last 13% of the voters mainly use the option in case of exclusive deals or sales showcasing a trend where discounts and special offers play a crucial role in shaping consumer choices.

The insights on “why GenZs use the buy now pay later option” paints a clear picture of why this mode of payment has gained popularity amongst its users.