Gen Y Shoppers Drawn to Retailers That Offer Financing Options

November 26, 2014, Written By Natalie Rutledge
Shopping Friends

According to a recent study, 59% of Gen Y shoppers (adults aged 18-34) say they prefer to shop with retailers that offer financing options.

Researchers estimate this generation of shoppers has a $200 billion annual spending power, which makes earning their business all the more important.

The study also revealed that Gen Y buyers are more aware of their financing options than members of other generations. 32% of Gen Y shoppers knew about second-look financing, compared to only 13% of consumers over the age of 55. 56% of Gen Y shoppers said financing options impact where they make their purchases, compared to 36% of the older consumers.

As you may expect, Gen Y consumers are more likely to use financing for a wider range of products and services. All generations were open to using financing for furniture and appliances, but 38% of Gen Y respondents said they would also use financing for electronics, compared to 27% of all shoppers. The same applied for jewelry: 21% compared to 11%.

“Up to 50% of primary credit applications are routinely declined, which can lead to lost sales for many retailers. Secondary financing options can help consumers, especially Gen Y consumers, buy what they want, when they need it,” said Suneet Paul, co-founder and CEO of NewComLink, the company that commissioned the study. “As a result, retailers who offer financing choices see increases in customer loyalty as well as revenue.”



The information contained within this article was accurate as of November 26, 2014. For up-to-date
information on any of the terms, cards or offers mentioned above, visit the issuer's website.


About Natalie Rutledge

Natalie Rutledge majored in Communications at Mississippi State University. She was in sales for a number of businesses and spent nine years working as a communications advisor to various entities. Natalie can be contacted directly at [email protected]
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