Gen Y Shoppers Drawn to Retailers That Offer Financing Options

Gen Y Shoppers Drawn to Retailers That Offer Financing Options

November 26, 2014         Written By Natalie Rutledge

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.


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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 natalie@lowcards.com
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