The company’s Pay Later solution is now accessible to consumers in the United States, the United Kingdom, Australia, Germany, France, Spain, and Italy, thanks to the statement made on Wednesday, July 26. It is part of the internet giant’s expanding cooperation with PayPal.
Venmo, a service from PayPal, will soon be accepted in the Microsoft Store by customers in the United States. Currently, the Xbox Microsoft Store offers Venmo.
“With PayPal Pay Later, eligible consumers will now be able to pay for their purchases evenly over weeks or months in fixed amounts, providing flexibility in how to pay and helping customers to manage their budget better,” the businesses said in a news statement.
Customers will also have the choice to buy subscriptions or divide payments when using Venmo.
The expanded relationship comes when consumers, particularly younger ones, use BNPL at an increased rate. For instance, in its most recent financial report, PayPal said that BNPL volumes had increased by 70% year over year.
The financial flexibility and simplicity BNPL offers are “one of the main reasons BNPL has thrived among younger consumers,” PYMNTS stated last month.
Traditional credit cards are less tempting to people looking for cost-effective choices because they sometimes have high-interest rates and severe payback periods. Conversely, BNPL services allow customers to divide purchases into smaller, interest-free installments, enabling them to manage their money better.
More recent research from PYMNTS has shed light on the shopping habits of Gen Z and millennials about BNPL, revealing that grocery shopping is one of the significant uses for BNPL among these customers.
Groceries made up more than 10% of BNPL users’ most recent transactions, according to the PYMNTS and i2c study “The Credit Economy: How Younger Consumers Make Credit Decisions.”
In the surveyed sample, 15% of the millennials who use BNPL said their most recent BNPL transaction was for groceries. Similarly, 14% of Generation X customers said they had recently purchased food using BNPL.
But it goes beyond just food shopping. According to Square data, Gen Z and millennials are still essential to expanding luxury businesses, with Gen Z buyers representing the fastest-growing demographic.
Original post published in PYMNTS