Consumers Frantic Shopping This Holiday Season, Many Choose to Pay Later
The Covid-19 pandemic spoiled the holiday season last year. However, with a low rate of Covid-19 positivity, a lower number of active cases and deaths, consumers are not in the mood to let the party spirit go this holiday season.
Even the high prices and income levels affected by Covid have failed to cool the mind. However, with incomes affected by the pandemic, a majority of people are avoiding expensive purchases and opting for various options for paying later – either taking loans and paying them back later, or using various payment options to defer payments. cash outflows.
“The fervor of this holiday season is probably closer to the pre-Covid period and consumers are interested in the increase in discretionary spending, so there is an organic increase in digital lending volume. While most product offerings remain the same with most lenders, the main attraction is the quality of service and the quick disbursements of the loans, ”said Krishnan Vishwanathan – CEO and Founder of Kissht.
“Among other things, Kissht also offers vouchers for Amazon and Flipkart which have seen good demand among consumers this holiday season. We saw a 34% increase in voucher sales in the first two weeks of October 2021 compared to the previous month and nearly 90% of vouchers were in the price range of Rs 8,000 to Rs 10,000 ”, Vishwanathan added.
In addition to taking out loans for festive purchases, people also opt for the Buy Now – Pay Later (BNPL) option to keep the festive spirit alive.
“BNPL has been in the market for a long time, but it gained importance during the pandemic period, forcing people to find other ways to finance their expenses, including essentials. BNPL is a user-friendly and agile solution that appeals to today’s consumer, known for their need for instant gratification. In addition, BNPL allows customers to break down large expenses into smaller, uninteresting IMEs, instead of going broke. Thus, they feel less financial burden, especially around the holiday season when there is an increase in general expenses, ”Vishwanathan said.
“However, consumers should also be careful of hidden costs and reimbursement options,” he warned.