Finance Crossword Puzzle 37

BNPLTarget Customers?

Millennials and Generation Z have historically been the younger groups that BNPL has targeted as customers.

Gen Z

Generation Z (aka Gen Z, iGen, or centennials), refers to the generation that was born between 1997-2012, following millennials. The implications of growing up in a super active technological environment shifts youth behaviors, attitudes, and Lifestyles.

User habits

Demands Sustainable Shopping The mobile-first, digitally native generation

Gen-Z characteristics

Young people nowadays are statistically considerably less likely than their counterparts a decade ago to pursue the humanities and much more likely to study STEM (Science, Tech, Engineering, or Math) disciplines. They produce $229 billion in annual salaries alone from full-time employment. With the help of side jobs, this group generates roughly $40 billion annually

Gen Z Has $360 Billion to Spend, Catch Is Getting Them to Buy Report shows instead of spending they’re saving and investing (Bloomberg)

Why Genz and BNPL go hand in hand?

Convenience BNPL payments are processed quickly. The trip (faster checkouts) is just as significant as the ultimate purchase (faster delivery)

Lack of Alternative Credit: Since many Gen Z are first-time borrowers, banks will not issue them a credit card without a guarantee. Firsttime borrowers have access to credit thanks to BNPL products, which use alternative data and artificial intelligence to analyse a user's profile and extend credit appropriately.

Easy Refunds: If a customer later decides they want to cancel the order, the e-commerce company will issue a refund; however, it will take time once the money reaches the customer's bank account. But in BNPL programme, the refund is processed right away.

Easy EMIs: A lot of Gen Z and millennial customers utilise BNPL for minor purchases, which enables them to divide the cost into manageable EMIs that may be paid over three or more months of an interest-free period. People are now able to purchase products that were previously beyond their price range.