Add retail credit cards to the list of industries millennials have killed.

In 2018, 45% of digital consumers reported that their purchase decisions were influenced by the availability of financing options. Established retail brands like Home Depot, Macy’s, and Best Buy have long offered both credit card and layaway financing options.

Recently, innovators like Everlane and Warby Parker have partnered with vendors like AfterPay to facilitate similar in-store and e-commerce financing flexibility. These Buy Now, Pay Later financing options offer alternatives to traditional retail financing, which allows customers to finance per item, rather than opening entire lines of credit with a brand. Think a traditional layaway plan, but marketed in pastel colors and a sans-serif font. For consumers using this e-commerce financing, 31% of digital consumers reportedly made purchases they wouldn’t have otherwise, and 36% indicated buying the more expensive option because of this flexibility.

Post purchase

However, the Buy Now, Pay Later financing option is supported by just 11% of brands examined in Gartner L2’s Activewear US: Post-Purchase report. Brands should elevate financing options early, as this serves to both inform and incentivize purchase. For example, ASOS surfaces its financing options in a stable footer throughout its site, and Everlane surfaces interest-free monthly payments with AfterPay directly onto product pages. 

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