Some shoppers dealing with increased prices on back-to-school items are using everything in their arsenals to tackle the extra costs, including buy now, pay later (BNPL), according to recent survey data.
New research from TransUnion found that 55% of consumers said they expected to spend more on their back-to-school shopping this year, with inflation driving the increase.
And more than one-third of these consumers said they have already used or plan to use BNPL — which is an interest-free installment payment plan that’s available at many major retailers — to break up the cost of their back-to-school purchases. The back-to-school shopping trends research was conducted via an online survey of 1,000 adults in July 2022.
Of the consumers using BNPL for back-to-school shopping, nearly two-thirds of them, or 62%, said they are doing so to buy books and other items needed for school, while 52% said they are using it to buy an expensive school-related item, like a computer, the survey said.
Millennials are by far the largest group of consumers opting to use BNPL for this purpose, with 47% of that generation using the alternative financing option for their back-to-school shopping, according to TransUnion.
“Families are especially hard hit by inflation, and back-to-school shopping represents a significant cost on top of everyday expenses,” Cecilia Seiden, vice president of TransUnion’s retail business, said. “The ability to spread those payments out over time, interest-free, is a very attractive option to parents and students who are already stretched thin financially.”
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