Two-thirds (67%) of UK millennials are using point-of-sale credit finance services, as appetite for the payment method increases across all age-ranges.
Global management consultant firm Kearney competed the research. It found that 42% of millennials had used the buy now, pay later services more than once in recent years.
It also recorded that 57% of generation X have used the payment option, with 34% having done so more than once.
Despite the widespread use, there are still 41% of UK shoppers which have still never used a POS credit finance option.
The research claims consumers would be more willing to try the credit method if they provide ease of use, value for money and transparency over any changes.
Nearly three in five (58%) of UK shoppers would use a buy now, pay later service for a purchase over £250, regardless of if they could pay the full price up front. Furthermore, 12% stated they would use the credit to trade-up and buyer a more expensive version.
Only 26% of consumers would use the POS credit if they could not afford the purchase immediately. This includes 13% that would rather pay through credit than save up money for the item.
Kearney principal Sameer Pethe said, “The findings outlined in this report reveal the potential opportunities for a service provider to be able to develop and market a genuinely easy to use, transparent PoS credit service. Today, this is a very fragmented market: a good proposition linked to a trusted brand could capture a substantial market share.
Retailers who understand their role in responsible lending can stand to benefit from offering ‘buy now, pay later’ credit services. For some consumers, access to PoS credit is now a reason to use a particular retailer – and this trend will become more significant as the market for these services continues to grow.”
Last year, Sweden’s minister for financial markets, Per Bolund, proposed a ban on credit options being pre-selected when making online purchases. Klarna, a payment instalment service, opposed this change claiming it hinders the ability to offer services created specifically for consumers.
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