Gen Z consumers prefer the use of buy now, pay later (BNPL) services over credit cards.
Global information and insights company TransUnion released its first quarter 2024 Consumer Pulse Survey, whose included responses from 977 Filipinos aged 18 years and older. A key finding among the Gen Z (aged 18 to 26) respondents is that 81 percent are aware of the BNPL scheme.
In addition, 65 percent of the Gen Z consumers made at least one BNPL transaction within the past 12 months, an 8 percent increase from the first quarter of 2023. This increase is the largest among all age groups, according to TransUnion.
When asked why they used BNPL services, 60 percent of Filipino respondents cited ease of application as the top reason. This was also the most commonly cited reason among Gen Z consumers. In other countries, the top reasons for using BNPL were to spread payments over time, afford large purchases, or simply to try the service.
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The survey also revealed that more people are monitoring their credit reports on a regular basis, with 70 percent of Filipino respondents saying they examined their credit reports at least once a month, a 5 percent increase since Q1 2023.
Among Gen Z respondents, the proportion of those who did not monitor their credit reports decreased to 14 percent, which is 3 percentage points lower than in Q4 2023. The top reason cited for regular credit monitoring, by 55 percent of Gen Z respondents, was to protect themselves from fraud. Other reasons included checking for credit offers they might qualify for and learning how to improve their credit scores.
Furthermore, the Consumer Pulse survey looked into the spending behavior of consumers. The percentage of Filipino consumers who said they would spend more within the next three months increased across four categories of purchases: in-store or online retail shopping, discretionary personal spending, large purchases, and digital services.
Filipino consumers also indicated in the survey their top three concerns regarding price increases. Groceries were the top concern, cited by 83 percent of respondents, followed by utilities (68 percent) and medical care (55 percent).