The increasingly perilous “Buy Now, Pay Later” (Episode 3)
While deferred payment is not new, luxury goods bought through leasing arrangements is a strong trend that has increased with the pandemic. This instalment method, flexible and free from initial interest rates, offers immediate satisfaction to consumers. On the flip side, it would lead to over-indebtedness.
USD 353 B
of transactions via BNPL in 2019 worldwide
USD 680 B
of transactions via BNPL in 2025 worldwide
80%
of consumers via BNPL are GenZ and Millennials
This is one of the most important accelerations of the past years. Already used for more than a decade, the “Buy Now, Pay Later” method, or BNPL, has experienced an important increase with the creation of many platforms offering this financing model to brands, and therefore to consumers. In all sectors, the total transaction value of BNPL will increase from 353 billion dollars in 2019, to 680 billion dollars in 2025 around the world, according to Kaleido Intelligence.
For Karine Szegedi, associate at Deloitte and luxury sector specialist, the trend is clear: “The BNPL program has certainly been one of the biggest trends of the retail market last year, accelerated by the pandemic and its
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See now, buy now: the new luxury business model (Episode 1)
The “see now, buy now” trend reflects the desire for immediacy that animates young luxury customers. It’s a revolution based on complex psychological mechanisms, it plays out on social media platforms and has been boosted by the COVID-19 pandemic. Luxury Tribune takes a deep dive into this new shopping experience. Here’s episode one of four.
See now, buy now: from impulsive shopping to compulsive shopping (Episode 2)
What are the psychological cues that push luxury consumers to buy with one click? One thing is certain, there must be a lot, considering that 95% of our brain’s activity is unconscious. With one threat that looms large over these new buying habits: oniomania, also known as compulsive shopping disorder.
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