Gen Z used BNPL more than credit cards throughout the holidays, the survey shows

A JD Power Consumer survey found that GEN Z members were more able to use Buy Now, to pay later than credit cards in what he said that company was a first time survey result.

The analysis company examined about 4,300 American consumers, including approximately 1,000 GEN Z members, about their spending habits for all 2024 and, in particular, for the 2024 holiday shopping season. For the holidays, 54% of the Z said they used BNPL at that time, and 50% said they used credit cards. Was the first JD Power survey that showed that BNPL has overcome the use of credit card Among these demographic, A Thursday’s news communication said.

The result was not completely unexpected, said Sean Gelles, principal director of information payments for JD Power. “These products respond to a need that are not satisfied with the products on the market,” he said.

For the whole year, 44% of Gen Z said they used buy now, pay later in 2024, compared to 50% who said they used credit cards.

Of all the consumers questioned, 32% said they used Buy Now, pay later in 2024, an increase of 4 percentage points compared to 2023, while the use of the credit card among all the survey respondents decreased by 6 percentage points in 61% in 2024, compared to 2023.

It is not time for traditional financial institutions to start panic, at least not yet, said Gelles, mentioning that banks and credit card networks have started to enter the BNPL game.

“You can’t generalize and say that Gen Z use Buy now, pay later, more than credit cards,” he said. “But you can say that during the holiday shopping season, when you have this big peak in expenses, a higher percentage of gender says that I use bum now, pay later at the point of sale than their real physical credit card.”

Buy now, pay companies later enjoy high satisfaction rates among consumers, but old banks and credit card networks still have higher grades, he said.

American Express and JPMorgan Chase — which offers card-based shopping now, pays products later — they received the highest grades from consumers questioned by JD Power, Gelles said.

Klarna’s BNPP product was best rated among shopping now, paying companies later, placing it in fourth place behind Citi Flex Pay, BNPL offer of the bank.

“You have to make sure they will continue to offer the best customer experiences,” Gelles said about banks and credit card companies