Gen Yers and Zers are turning to payment services like Klarna, Afterpay, and Laybuy to help their wallets keep up with their shopping habits. But due to a lack of education regarding financial responsibility, how are these ‘buy now, pay later’ services impacting their financial futures?

Buy Now, Pay Later fintech pioneers are seeing a huge success with Aussie Gen Yers and Zers, edging out traditional bank offerings. As consumers – especially young people – take an economic hit due to the pandemic, financial brands have the chance to innovate to match new economic realities.

The pandemic triggered an economic crisis for many, upending their shopping behaviours. For some, 'buy now, pay later' (BNPL) schemes have provided an accessible solution to smaller budgets, but their growing popularity could have negative consequences in the long run.

Gen Z hypebeasts have been a driving force behind the popularity of ‘buy now, pay later’ schemes and luxury mystery boxes. But why exactly are these services so appealing to the young and affluent? And how can brands adapt their offerings to attract these shoppers in a crowded online marketplace?