Millennials swoop on payments flexibility
All of a sudden, buy now, pay later schemes are everywhere.
In less than three years, Afterpay, Laybuy, Partpay and a string of other staggered payment schemes have come to the fore, with astonishing growth.
Millennials, too young to remember the old layby systems when you couldn’t collect your goods until you had paid for them, are loving it.
‘‘It just seems to suit the spirit of the times, particularly with younger consumers who are able to spread the cost,’’ says Massey University’s chair of retail management, Professor Jonathan Elms.
Vaughan Fergusson, founder of payment software company Vend, a partner with AfterPay, said the trend was being driven by young people who were accustomed to convenience.
‘‘First it was online shopping, then mobile payments, and buynow, pay later is a continuation of this,’’ he said.
Retailers were now in a very fast-paced and technology-driven environment, and stores were having to stay competitive to keep shoppers.
‘‘And what shoppers want is flexibility in what they buy, and how they pay. It’s actually becoming a very normal part of the way younger people shop, just like traditional layby has been for many of us in the past.’’
Independent retailers, which were vital to towns and communities, were benefiting from the system because their unique and curated products were often more considered purchases than commodities such as toilet paper or a basic t-shirt.
‘‘So if shoppers can use a buy now, pay later service with a smaller store, if they need to, it means they’re more likely to support and shop with these stores again. And that can only be a good thing.’’