Gen Z more into buy now, pay later schemes - survey

The use of buy now, pay later (BNPL) services is on the rise in the Philippines, with the biggest increase observed among Gen Z consumers, according to a study from global information and insights company TransUnion.

- LOUELLA DESIDERIO

In its First Quarter 2024 Consumer Pulse Survey conducted from Feb. 6 to 14 this year covering 977 Filipino consumers aged 18 years and older, TransUnion found that 82 percent of Filipinos have heard of BNPL.

BNPL is a type of short-term financing that allows consumers to purchase goods without having to pay the full amount at once.

Of those who are aware of BNPL, 63 percent said they had at least one BNPL transaction in the last 12 months, up from 61 percent in the first quarter of last year.

The study also found that 81 percent of those in Gen Z or aged 18 to 26 years old have heard of BNPL.

Of this age group, 65 percent said they made at least one BNPL transaction in the past 12 months, higher than the 57 percent in the first quarter of 2023.

TransUnion said this is the biggest increase among all generations.

Gen Z consumers who used BNPL cited it being easy to apply as the top reason for their use of the service.

Other top reported reasons include wanting to try the service (17 percent), spreading payments over time (11 percent) and having an alternative to afford a larger purchase (11 percent).