What the “Buy Now, Pay Later” trend says about U.S. consumers
Vivek Pandya, Lead Analyst, Adobe Digital Insights, joined TheStreet to discuss what this growing “Buy Now, Pay Later” trend says about U.S. consumers.
Category
🥇
SportsTranscript
00:00 What does this tell you right now about the state of the US consumer?
00:04 Is this just a new way to pay for things and people are kind of trying it out or does this tell
00:08 a little bit of a deeper story given where we are with the US economy?
00:11 It definitely tells us that consumers are being very strategic and cost-conscious and very
00:19 specific about how they purchase and how they buy. Yes, it's a new mode of transaction and
00:25 that's holding some level of appeal. I mean the idea of installment payments has been around for
00:30 decades but the way it's been integrated across these online channels is very new and so that's
00:35 helping drive some of that growth and that's not something to be too concerned about. But I do think
00:41 in an environment where retailers are looking to try to drive more growth, they have to be
00:47 cognizant of the fact that you still have consumers who are not spending like they did back in 2020
00:54 and are having to be very conscious about areas of the economy where there's still heavy inflation
01:01 like food, like housing and that has knock-on effects to their regular consumption purchasing.
01:07 So the fact that we're still seeing people lean on buy now pay later and that growth
01:12 I think speaks to consumers wanting to spend and needing to spend on certain goods but having to
01:19 kind of be very strategic and not overspend because they're having to lean on these types of options.
01:27 [BLANK_AUDIO]