Gen Z actually prefers using cash over buy now, pay later. While the young gen seemed to be big fans of pay-in-installment features as they became regular to online shopping, it’s really not their first choice. One survey finds 59% of 18-25-year-olds prefer to pay for things up front, while only 14% would rather pay in installments. This demographic is also one of the smallest userbases for Klarna, with Millennials much bigger users. One major reason is that the young gen is afraid of racking up unnecessary debt—paying over time may be good for major purchases, but the temptation of using it for smaller ones could encourage buying more than they can afford (or need). But interestingly, using cash encourages some toward impulse purchases, too; according to Credit Karma, one in five Gen Z say “paying with cash feels like free money,” an idea driven by seeing no change in their bank balance. (Business Insider)
📊 YPulse data: 27% of 18-24-year-olds have used a “buy now, pay later” or payment installment service
