Retail finance schemes growing in popularity in the US

The study found there are generational differences in the way people pay. millennials are most likely to be using BNPL more compared to before the onset of the pandemic, with 35% of millennials using BNPL more, compared to 21% of Gen Z and 18% of Gen X.

Millennials have also been using peer-to-peer payment (P2P) services more compared to before the onset of the pandemic, with 44% using P2P more, compared to 34% of Gen Z and 39% of Gen X.

Awareness of the different digital payments options available is growing. While the BNPL service PayPal Credit is the most well-known, with 69% saying they had heard of it, awareness of other platforms is increasing, including PayPal’s Pay in 4 ( 46%), Afterpay( 41%), Affirm ( 41%) and Klarna ( 37%). 

The research is an online study conducted among 1,000 US adults and an augment of 200 older Gen Zers ( 16-24 years old) between 7-14 October 2021. In-depth interviews were conducted by Know Research to give qualitative depth to the quantitative findings. The study has been taking place annually since 2017.

“This new wave of our study showed some significant trends and changes in the world of payments, with big changes for younger generations,” said Logica Research founder and chief executive  Lilah Raynor. “People are looking for innovative solutions from financial brands during times of uncertainty more now than ever.”