Younger consumers opt to ‘buy now, pay later’ | WARC | The Feed

Younger consumers opt to ‘buy now, pay later’

‘Buy now, pay later’ (BNPL) options are enjoying rapid growth thanks to a younger audience which has different attitudes towards credit. 

The background

• The likes of Klarna, Affirm and Afterpay are valued in the billions of dollars and, in the US alone, BNPL is expected to fuel more than $20 billion worth of purchases in 2020.
• Klarna claims it will grow its US customer base by 50% in Q4 2020 to reach 15 million – as an existing trend is accelerated by the pandemic.
• The majority of these customers are aged under 36 and 80% use a debit card when using Klarna’s solutions. 

Key quote

“We want to sit at the intersection of shopping, banking and payments and really make all of those activities smoother for a customer” – David Sykes, head of Klarna US.

Sourced from WARC