Baby Boomers Set to Drive BNPL Growth as 40% Plan to Utilize Services

Discover how Baby Boomers are embracing Buy Now, Pay Later services, with two in five planning to use them in the upcoming year.

TransUnion, a global information and insights company, has recently released the results of its Q1 Consumer Pulse survey, shedding light on the continued popularity of Buy Now, Pay Later (BNPL) services among consumers. BNPL services allow individuals to split their purchases into manageable instalments, often without any interest charges. According to the survey findings, nearly a quarter of adults (23%) have utilized BNPL services in the past year, indicating a sustained demand for this payment option. This trend is consistent with observations made before the festive season.

The data from the survey also suggests that the BNPL sector is robust and maturing, with more than one in five individuals (21%) expressing their intention to apply for new BNPL services in the upcoming year. Interestingly, while many people associate BNPL serviceswith younger generations, it appears that Baby Boomers are poised to drive future growth in this area. In Q1 2024, almost two in five Baby Boomers (38%) plan to use BNPL services in the next 12 months, marking a significant increase of 21 percentage points from Q4 2023.

Although there is a noticeable growth in the adoption of BNPL services among older demographics, Millennials and Gen Z continue to be strong users of these services. A third of Millennials (33%) reported using BNPL services in the past year, a figure that remains consistent with Q1 2023. Similarly, Gen Z usage has seen an annual increase, with 34% of respondents stating that they made a purchase using BNPL services in the past 12 months, compared to 28% in the previous year.

Across different age groups, clothing and accessories emerged as the most popular category of products purchased using BNPL services in the UK, with Gen Z and Millennials leading the way at 45%. Interestingly, there is a notable difference in demographic preferences when it comes to using BNPL for food purchases, with Gen Z and Millennials being more likely to do so compared to Gen X and Baby Boomers.

In terms of spending patterns, respondents across generations indicated that they were most likely to have spent between £250 and £499 on BNPL purchases in the last 12 months. When it comes to reasons for not using BNPL services, avoiding debt remains a primary concern for Gen Z, Millennials, and Gen X, while Baby Boomers cited a lack of necessity as the main reason. However, the majority of respondents agreed that the ability to spread payments over time was the primary motivation for using BNPL products.

The findings of TransUnion's Q1 Consumer Pulse survey highlight the continued popularity and growth of Buy Now, Pay Later services among consumers of all age groups. As the BNPL sector continues to evolve and mature, it will be interesting to see how different demographics contribute to its expansion in the future.