More than one in three consumers using Buy Now Pay Later loans for back-to-school purchases

Trans Union

New TransUnion Retail Research Finds BNPL Helps Parents and Students Buy Books and Other Needed Supplies

CHICAGO, Aug. 23, 2022 (GLOBE NEWSWIRE) — More than a third of consumers (37%) have used or plan to use Buy Now Pay Later (BNPL) loans for back-to-school purchases, according to new research. TransUnion’s retail business (NYSE: TRU). BNPL loans allow consumers to make purchases with interest-free or deferred installment loans.

The research into back-to-school shopping trends was conducted via an online survey of 1,000 adults in July 2022. A full report of the findings and their implications for retailers is available in the new “TransUnion Back to School Shopping” report.

TransUnion analysis found that 55% of consumers expect to spend more on back-to-school purchases this year, with inflation driving the increase. Consumers also plan to make other adjustments in response to inflation, such as buying fewer and cheaper items. Changes in spending were more pronounced among students shopping for themselves than among parents shopping for their children.

Spending behavior adjusted for inflation

Buy cheaper
Versions of regular items

Spend more for
Buy regular items

Buy less than
Some items

Stopped buying
Some items

Parents shopping for their children

35%

36%

32%

19%

Students buy for themselves

42%

30%

38%

23%

“Families are especially hard hit by inflation, and back-to-school shopping is a significant cost on top of everyday expenses,” said Cecilia Seiden, vice president of retail for TransUnion. “The ability to spread these payments over time, interest-free, is a great option for parents and students who are already stretched thin.”

TransUnion helps retailers with audience targeting solutions to help them identify consumers who would be most likely to respond to offers with BNPL financing details. Additionally, TransUnion customers can access identity solutions to enable frictionless shopping experiences that balance convenience, efficiency and security.

A TransUnion study found that among consumers using BNPL for back-to-school shopping, nearly two-thirds (62%) do so to purchase books and other school-needed items, while 52% l use to buy a single expensive item, such as a computer, that is needed for school. Millennials are by far the largest consumer group represented here, with 47% of this generation using BNPL for their back-to-school shopping.

“Tap to Pay” and Preferred Curbside Pickup in Shopping Experience
The TransUnion study also polled consumers on their shopping experience preferences, finding that nearly 60% use the “tap to pay” option (e.g., Apple Pay or Google Pay) at checkout. . The main reason why consumers prefer such a service is that it is faster than swiping or inserting a debit or credit card into a machine.

However, of the 41% who don’t use tap to pay, 55% said it was because they didn’t see how it was any more convenient than using a debit card or credit, and 25% of this group said they do not. trust him to be safe.

Six in 10 consumers (60%) indicated that they use curbside pickup, with 40% of this group using it often or always. The vast majority (78%) use curbside pickup to avoid crowds, while almost half do so either because it’s convenient for shopping with their kids or to get their items faster . The survey also found that consumers believe curbside pickup significantly improves their shopping experience.

How curbside pickup improves the shopping experience

faster and more
Efficient

Prefer online at
In-store navigation

Feel more secure

Let me find
Greater variety

Generation Z

43%

29%

22%

15%

Millennials

50%

32%

24%

16%

Generation X

35%

27%

20%

12%

baby boomers

35%

29%

20%

12%

Millennials were the largest group of curbside collection users (70% vs. 60% overall). The main reason for this generation not to use the service was not having a vehicle. Of those who don’t use curbside pickup, 79% simply prefer to shop in-store and 36% prefer home delivery when shopping online.

Shopping becomes personal
The survey looked at consumer attitudes about how brands position themselves on issues related to environmental sustainability and social inclusion. Nearly four in 10 shoppers (39%) said that a company’s sustainability practices, such as having fair trade and locally sourced products, would at least make them more likely to shop at that retailer, or even to make them mandatory.

Similarly, almost half (46%) said a company’s diversity, equity and inclusion practices would make them at least more likely to shop at that retailer, if not an obligation to do so. shop.

When consumers were asked if they were willing to provide retailers with personal information to optimize their shopping experiences, 68% said they didn’t mind or actively wanted retailers to use their personal information to create accurate and personalized purchase recommendations.

“Overall, consumers have always expected retailers to provide quality products at an affordable price – what we would call ‘good value,'” said Mark Rose, senior director of retail operations at TransUnion. . “However, these expectations have evolved as services such as curbside pickup and contactless payment have created better shopping experiences, and more recently, as consumers have come to expect “Retailers and brands are taking a stand on social and environmental issues. It’s important for retailers to understand the sentiment of their customers and take this into account internally and externally.”

For more information on the survey results and their implications for retailers, download the report here.

Click here for more details on TransUnion’s retail solutions, including digital marketing, customer analytics and fraud detection.

RESEARCH METHODOLOGY
This online survey of 1,000 adults was conducted July 21-24, 2022 by TransUnion in partnership with a third-party research provider, Dynata. Survey participants included adults 18 and older residing in the United States – who have a child or children attending school in fall 2022 or attending school in fall themselves 2022. Participants were surveyed using an online research panel method on a combination of desktop, mobile and tablet devices. The survey questions were administered in English. To ensure the representativeness of the general population sample in the demographics of United States residents, the survey included quotas to balance responses to census statistics on the age, gender, and income dimensions of the housework. The generations are defined as follows: generation Z, born between 1995 and 2004; Millennials, born between 1980 and 1994; Generation X, born between 1965 and 1979; and baby boomers, born between 1944 and 1964.

About TransUnion (NYSE: TRU)

TransUnion is a global information and knowledge company that enables confidence in the modern economy. We do this by providing an actionable picture of each person so they can be reliably represented in the marketplace. As a result, businesses and consumers can transact with confidence and achieve great things. We call it Information for Good.® A leading presence in more than 30 countries on five continents, TransUnion provides solutions that help create economic opportunity, great experiences and personal empowerment for hundreds of millions of people.

Contact

Dave Blumberg

Trans Union

E-mail

david.blumberg@transunion.com

Telephone

312-972-6646

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