Back-to-school shoppers turn to ‘buy-now, pay later’ apps to battle inflation: survey
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The number of back-to-school shoppers using “buy-now, pay later” apps to cover the cost of supplies has soared as they cope with decades-high inflation, according to a survey.
The survey by credit-reporting agency TransUnion found 37% of shoppers are turning to the layaway options offered by apps like Affirm, Afterpay and PayPal — up from just 2% who used the option last year.
“Families are especially hard hit by inflation, and back-to-school shopping represents a significant cost on top of everyday expenses,” Cecilia Seiden, vice president of TransUnion’s retail business said in a statement. “The ability to spread those payments out over time, interest-free, is a very attractive option to parents and students who are already stretched thin financially.”
![A shelf filled with notebooks.](https://cdn.statically.io/img/nypost.com/wp-content/uploads/sites/2/2022/08/back-to-school-supplies-79-notebooks.jpg?w=1024)
The higher prices for supplies this year is causing shoppers to buy fewer items or less expensive versions of the same item, the survey of 1,000 adults conducted July 21-24 found.
Thirty-eight percent of consumers planned to substitute less expensive items for their school shopping, while 34% planned to purchase less, and 21% planned to stop purchasing some items altogether, according to the survey.
The report also found that higher income consumers are turning to buy-now, pay-later for expensive items, including televisions or Pelotons.
The ‘buy-now, pay-later’ apps allow shoppers anywhere from six weeks to a year to pay off the purchases — with fees charged if they miss a payment. Afterpay, for example, charges an $8 fee or 25% of the transaction, whichever is less for each late payment.
Other back-to-school surveys predict that inflation will temper consumer spending.
The back-to-school shopping season is expected to grow 5.5% this year compared to the dramatic 13.1% growth last year, according to Customer Growth Partners.
![A young girl shopping for school supplies.](https://cdn.statically.io/img/nypost.com/wp-content/uploads/sites/2/2022/08/back-to-school-supplies-75-student-shopping.jpg?w=1024)
Meanwhile, Macy’s cut its forecast for the year on Tuesday because the department store is worried about the “continued deterioration of consumer discretionary spending,” the company said in a statement.