Cash payments not yet a thing of the past; ‘Buy Now, Pay Later’ proves a popular way to spread the cost of grabbing a bargain with half of millennials

November 14, 2022 – US – US shoppers are planning to hunt for energy-saving bargains, including blankets and small space heaters, on Black Friday this year. According to new research announced today by quantilope, the research platform that automates advanced research methodologies, more than a quarter of shoppers plan to buy products to help save on their energy bills this winter, while more than half (53%) will look for basic essentials for themselves or their family.

quantilope surveyed 400 consumers in the US (and 400 in the UK) to understand more about their Black Friday shopping habits and how they plan to pay for their purchases. A quarter of consumers say they will avoid Black Friday this year altogether, with around half of these avoiders saying there is nothing they need to buy on a Black Friday deal (46%). Given the huge popularity of Black Friday in the US, more than a third (36%) think it’s over-hyped and almost one in ten say it stresses them out. The rising cost of living is having a big impact, with a quarter of those abstaining from Black Friday shopping saying that inflation has affected their discretionary spending.

Alex Hall, Associate Director at quantilope, believes shoppers are looking to Black Friday as a way of saving money in more ways than one. “It’s a time when people usually look for deals on gifts for themselves and their families ahead of the holidays. While this still holds true this year, we’re also seeing substantial metrics for those stocking up on basic essentials, items for the household, and even energy-reducing items. This might signal the start of a changed perception about Black Friday.” 

‘Buy Now, Pay Later’ generation but cash remains a popular payment choice

With the majority (64%) of consumers planning to shop both online and in-store, quantilope’s research looked at how people will be paying.

Cash, it seems, is still heavily utilized, with more than a third (36%) of consumers saying they plan to use cash on Black Friday. Although, debit and credit cards remain the most popular choice of payment (both 61%), and around one in four (27%) will be using gift cards.

‘Buy Now, Pay Later’ (BNPL) services are also gaining popularity, particularly with younger shoppers. 29% of consumers overall say they will use BNPL this Black Friday – perhaps so that they don’t miss out on any Black Friday bargains that could save them money in the longer term. This metric rises significantly among millennials, with 52% planning to use BNPL (the highest of any generation).

These BNPL insights are backed up by UK research from McKinsey & Company, which indicates that BNPL services are becoming increasingly popular as the cost of living crisis worsens and people turn to shopping on credit. It also states that both millennials and Gen Z are more likely to use BNPL in the coming months.

“This is further evidence that the current economic climate impacts what shoppers buy and how they plan to pay for it. But what’s really interesting is that as well as people planning to buy on no interest credit services like BNPL as well as credit cards, cash is also more utilized than expected in an age when tap-to-pay seems to be universal. Using cash might be a way for consumers to budget their spending and not spend over their limits during this time,” adds quantilope’s Alex Hall.

quantilope’s ‘Black Friday Shopper Insights study surveyed 400 US and 400 UK shoppers in October 2022. Access quantilope’s Insights Dashboard here.