Financial impact of the pandemic
The economic recovery persisted in Q3 2021. Fewer consumers (43% decreased 2 percentage points from last quarter) were negatively impacted with short of half (42%) of respondents optimistic about the future. Across generations, more Gen Z were optimistic (47%, increased 7 percentage points), while more Baby Boomers (37%, increased 4 percentage points) held a neutral view.
Buy Now Pay Later
Buy Now Pay Later (BNPL) service has been gaining popularity with 62% (increased 14 percentage points) of respondents aware of the service. However, more consumer education is required since 27% of consumers who have not used BNPL said they didn’t understand the service. In particular, half of the respondents who have not used BNPL (48%) did not see the need, and some were worried about the debt (38%) and fees for missed payments (28%).
Payday loan is a new lending product gaining visibility in the market as most (80%) respondents have heard of the product and half (52%) of them believed the product would be at least somewhat valuable. However, the product is still new to the market and only 10% of consumers have used the service in the past 12 months.
Government consumption vouchers
Consumption vouchers have led to consumer optimism as 31% of consumers said they’ll increase in-store or online retail shopping. The signal is more evident in younger generations: 38% and 33% of Gen Z and Millennials, respectively are planning to increase retail spending.
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