Young consumers buy now, pay later

The inherent risk of fraud has not stopped younger Filipinos from being “credit-hungry,” as more Gen Zs and millennials are now using “buy now, pay later” (BNPL) options for online transactions while on the lookout for ways to improve their credit score.

US-based credit reporting firm TransUnion found in its latest consumer pulse survey that 65 percent of Gen Zs, those aged 18 to 26, who were aware of BNPL said they had paid for their purchases through credit services at least once in the past year.

This is up from 57 percent in the first quarter of last year, and the biggest increase among all generations, according to TransUnion.

The survey involved 977 Filipino adults and was conducted Feb. 6 to Feb. 14.

TransUnion said younger Filipinos opted to spread out their payments over a short period of time for certain purchases.

“For many Filipinos, [BNPL] services offer financial convenience and flexibility by letting them tailor their payment terms to best suit their needs and preferences,” said Weihan Sun, TransUnion principal of research and consulting for the Asia-Pacific region.

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Most Gen Zs had said that they had used the BNPL scheme because it was “easy to apply,” while some use it for larger purchases (11 percent).

Likewise, this generation born in the age of technological advancement has been increasingly monitoring their credit scores, TransUnion said, with 74 percent of Gen Zs saying that they checked their credit reports monthly and sought ways to improve their credit scores. INQ