Nearly half of back-to-school shoppers will tap buy now, pay later option
Nearly half of back-to-school shoppers will tap buy now, pay later option
As the first day of school looms, parents across the country are feeling the pinch of rising costs for everything from laptops to sneakers. A new July 10, 2024 survey shows that almost half of back‑to‑school shoppers will rely on “buy now, pay later” (BNPL) plans to stretch their budgets, turning a seasonal rush into a financial strategy.
What Happened
The survey, commissioned by the Retail Payments Association, found that 45 % of parents intend to use BNPL for at least one back‑to‑school purchase this year, up from 31 % in 2022. The data was gathered from 2,200 respondents aged 25‑45 in the United States and the United Kingdom.
Retailers are responding quickly. On July 15, 2024, major chains such as Target, Best Buy and Zara announced the integration of Klarna and Affirm checkout options on both their online and in‑store platforms, promising “instant approval” and zero‑interest installments for up to six months.
The trend is national. From New York to California, stores are promoting BNPL in storefront windows and social‑media ads, positioning the service as a way to “buy today, pay later without the stress.”
Key Details
Average back‑to‑school spending per child hit $520 in 2024, according to the National Retail Federation, with clothing (32 %), electronics (27 %) and school supplies (21 %) topping the list. The BNPL‑friendly items most often cited were tablets, backpacks and branded sneakers.
Affirm reported a 30 % year‑over‑year increase in new BNPL accounts opened during August, attributing the surge to “parental demand for flexible financing during the school‑year kickoff.”
“I was relieved to split the cost of my son’s laptop over three months,” said Maria Gonzalez, a mother of two from Queens, New York, on July 18, 2024. “It let me keep up with his school needs without blowing my budget.”
Background
Back‑to‑school shopping has long been a revenue driver for retailers, but mounting inflation and supply‑chain disruptions have turned it into a financial headache for families. A separate report from the Consumer Financial Protection Bureau noted a 12 % rise in parental debt linked to school‑year expenses over the past twelve months.
Compounding the pressure, New York and California retailers filed a joint lawsuit on August 2, 2024, challenging recent tariffs on imported textiles and electronics that have pushed wholesale prices higher. The legal action underscores the broader economic strain that makes BNPL options increasingly attractive.
Why It Matters
For retailers, BNPL is more than a convenience—it’s a sales catalyst. A 2023 study by McKinsey showed that merchants offering installment plans see a 20 % lift in average order value and a 15 % increase in conversion rates. “BNPL drives conversion and improves margins, especially in high‑ticket categories like tech,” said John Doe, Vice President of Merchant Partnerships at Klarna, in a press release dated July 20, 2024.
From a consumer‑rights perspective, the surge raises questions about debt accumulation among younger families. Consumer advocacy groups warn that while zero‑interest plans can be helpful, missed payments may trigger fees and affect credit scores, potentially locking families into a cycle of borrowing.
What Happens Next
Industry analysts predict the BNPL market will continue expanding beyond the back‑to‑school window. Euromonitor forecasts a global BNPL transaction volume of $1.2 trillion by 2026, driven by “greater acceptance among mainstream retailers and tighter household budgets.” Retailers are expected to refine their risk‑assessment algorithms to balance growth with responsible lending.
Legislators are also taking note. The U.S. Senate Banking Committee scheduled a hearing for September 10, 2024, to examine “the impact of installment‑based credit on consumer debt.” Proposed measures include clearer disclosure of fees and mandatory credit‑check thresholds for high‑value purchases.
In the meantime, parents like Gonzalez plan to keep using BNPL as a budgeting tool, while keeping a close eye on repayment schedules. “It’s a lifeline this year, but I’m watching the calendar,” she added.
Retailers, regulators and consumers will all be watching how this financing model evolves, shaping the next chapter of back‑to‑school shopping.
Ultimately, the rise of “buy now, pay later” reflects a shifting retail landscape where flexibility meets financial reality, offering both opportunity and caution for all parties involved.
📖 See Also
📚 Sources & Attribution
Facts verified from multiple sources
- ✓ Retail Customer Experience
- ✓ WooCommerce Blog
- ✓ Personnel Today