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Facts and Stats

Buy Now, Pay Later: Meeting Distinct Consumer Needs

For some time now, I've been noticing on many brands' payment pages the option to buy now and pay later.

With the holiday season approaching, it's a great way to boost consumer confidence, especially in these times of uncertainty and inflation.

Several retailers have launched "Pay Now, Buy Later" initiatives to offer their customers flexible payment options.

Among them, Amazon⁽¹⁾ has introduced two different option plans catering to distinct types of needs, such as Amazon payment plans provided directly by Amazon, and another option by the Affirm provider, which integrates the solution with Amazon Pay or Apple⁽²⁾ or Walmart⁽³⁾ as well.

But who really benefits from this type of plan?

Even if all studies show that those who really benefit most from these initiatives are Generation Z, as demonstrated by a recent study⁽⁴⁾ , nearly one in four Gen Z shoppers won't buy if BNPL is not offered for essential items.

Gen Zers are far from being individuals or a defined segment. They are people with a mindset and behavior, not just people who belong to a group.

They have much more specific needs, which BNPL meets:

Instant Gratification⁽¹⁾: Impulse buyers looking for immediate gratification without considering the long-term financial consequences.

Predictability and Transparency: Budget-conscious planners (2) or individuals who prioritize budgeting and financial planning, seeking manageable payment options to align with their financial goals.

Credit Score Preservation^(3): Credit-averse individuals or consumers who are cautious about traditional credit options, aiming to provide an alternative to credit cards and loans.

Payment Customization: Flexible spenders or individuals who appreciate financial flexibility and want options to align payments with their cash flow.

In times of inflation, this leads to higher prices for goods and services, making them less affordable for some consumers.

BNPL can help individuals purchase these items by allowing them to pay in installments, spreading the financial burden over time. But this remains a short-term solution.

What does the future hold for GenAI? The Gartner Hype Cycle. According to Gartner's latest "Hype Cycle for Artificial Intelligence," it comes as no surprise that generative AI and the fundamental models underpinning it currently reside at the peak of inflated expectations.

Survey: 51% of Gen Z women prefer TikTok, not Google, for search. TikTok is the search engine of choice for more than half of Gen Z and influences their purchase decisions more than any other platform.

Price, and free shipping are top factors in purchase decisions. When it comes to purchasing an item consumers are all about the price and if there is free shipping. Both factors are tops when it comes to influencing a purchase decision, according to a Gartner Inc. survey.

The Number

98%

of European online shoppers using social media for product research. PayTech firm Mollie.

Who’s Innovating?

Start of application phase: Henkel invites women in AI to Open Innovation Challenge. The Xathon, Henkel’s business hackathon for early-stage female entrepreneurs, has expanded its vision and has developed into an open innovation challenge with a focus on AI, retaining its commitment to empowering female founders in tech.

Mercedes and Mastercard Debut Fingerprint Payment Offering in Germany. Mastercard has launched an in-car payment partnership aimed at Mercedes drivers in Germany. The collaboration will let customers use a fingerprint sensor in their car to make digital payments at more than 3,600 service stations in Germany.

Nokia Launches Open Innovation Lab in Dubai to Boost Tech Adoption in MEA. Nokia has revealed plans to establish an Open Innovation lab in Dubai, UAE, aimed at fostering innovation and accelerating the integration of cutting-edge technologies across the Middle East and Africa (MEA) region. 

lululemon and Peloton Announce Partnership to Create a Global Community. Peloton and Lululemon have announced a five-year strategic global partnership that aims to bring together fitness content and athletic apparel and create a combined community of over 20 million Members and guests.

Startup Stories

TOP 100 Swiss Startups: Meet the Who’s Who of this thriving startup ecosystem. Renowned for its stunning landscapes, world-class education, and innovation-driven economy, Switzerland stands as a global hub for finance, technology, and quality living.

These are the hottest 50 startups in the United States right now, according to LinkedIn. LinkedIn released its Top Startups for 2023 today. The list, which is now in its 7th year, highlights 50 companies based in the United States that LinkedIn says are gaining attention and recruiting top talent, based on LinkedIn data that measures growth and demand.

This startup has 12 co-founders. Having a great founder/market fit is one of the key elements a potential investor will look at to choose whether or not to back a startup.

And the winner of Startup Battlefield at Disrupt 2023 is . . . BioticsAI. Over the last three days, 20 startups participated in the incredibly competitive Startup Battlefield at TechCrunch Disrupt. These 20 companies were selected as the best of the Startup Battlefield 200 and competed for a chance to take home the Startup Battlefield Cup and $100,000.

Unicorn Startup Airtable Lays Off 27% Of Firm, Shifts Focus To Big Clients. Airtable, the no-code software company valued at $11.7 billion, will lay off 237 employees to focus on winning large enterprise clients and reduce spending.

Best practices

How the “challenger brand” mindset can change the world. A “challenger brand” is defined by a determination to chase ambitions bigger than its conventional resources. Some of the world’s most successful companies have transferred this core mindset to societal challenges

Amazon enhances seller listing with generative AI. Amazon is equipping third-party sellers with advanced artificial intelligence (AI) tools designed to streamline the creation and editing of product listings.

How TikTok is shaking up e-commerce

TikTok now serves as a full-fledged U.S. e-commerce platform, and digital retail will never be quite the same.

Top 10 Ways AI Will Improve And Empower Metaverse Use Cases. AI is highly significant in the Metaverse use cases due to its ability to enhance user experiences, create dynamic environments, and enable interactions that mimic human-like behavior.

Expedia poised to take flight with generative AI. One implementation is the Expedia ChatGPT plug-in that enables users who start planning a trip on ChatGPT to select the Expedia plug-in to bring that trip to life, delivering them a seamless booking experience in Expedia, Murthy says.

Amazon launches new search functions on mobile to rival Google. Amazon is rolling out new features to improve its search capabilities on mobile. In a bid to rival search engines like Google and Pinterest, the retail giant is launching new search and discovery tools, including Multimodal search.

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