US customers increasingly use ‘Buy now, pay later’ option

The report shows what Gen Zers, Millennials and Gen Xers are shopping for, using Klarna’s payment solution

buy now pay later

US customers increasingly use ‘Buy now, pay later’ option. Source: shutterstock.com

Klarna reveals that its ‘buy now, pay later’ option is more popular than ever, with 1.1 million active app users per month across the US.

Besides, the data highlights that American consumers are shifting their e-commerce spending away from apparel toward health, beauty and leisure products since the lockdown continues.

The interesting thing our data uncovered this week is that consumers are focusing less on clothing, shoes and accessories and more on health and beauty and leisure categories. For retailers and brands, this week’s data may indicate that shoppers are choosing to buy items such as skincare and things like jigsaw puzzles and craft materials, now that they have already purchased the comfortable clothes they need to get through this work-from-home period. Our data also show that consumers are more interested than ever in using payment options that give them more flexibility and control over their finances during these uncertain times
Sebastian Siemiatkowski, Klarna CEO 

At the beginning of April, the apparel, footwear and accessories category’s share of all purchases decreased by 11% among Gen Zers. Among Millennials and Gen Xers it dropped by 9% and 10%, respectively.

Although, Gen Zers increased their share of spending on health and beauty products by 20%. Meanwhile, millennials and Gen Xers both raised their share of spending on the category slightly.

As to the leisure, sport and hobby items, Klarna’s users increased their share of spending up 6% among Gen Zers, up 5% among millennials and up 10% among Gen Xers.

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