Advise Gen Z on optimizing cash flow with a pay later wallet

The use of pay later wallets is becoming a strong trend as the younger generation no longer passively wait for their paycheck to shop like before.

Gen Z (those born between 1997-2012) are known for being quick to grasp everything, from trends, careers, to spending habits. More than half of their purchases are now made with pay later options. As a Gen Z herself, Ngoc Linh (24 years old, Hanoi) who works as a broker in a securities company, said: “More than half of the items I use are bought now and paid later.”

Buy now pay later is a payment method that allows consumers to buy products and pay in installments over a certain period of time. It originates from the needs of young people who desire a quick shopping experience. This service is integrated into online or retail store payment options of retailers and brands. Currently, many companies offer interest-free packages, but charge high late fees and penalties.

Gen Z likes to buy now, pay later (Illustration: ECC).

Ngoc Linh said that Generation Z has been exposed to technology early on, so digital spending is no longer unfamiliar. For example, online shopping has taken over the youth market: payment by bank transfer is more common than cash, and instead of spending a large sum of money on a purchase, Gen Z prefers to choose buy now, pay later to spend more wisely.

As someone working in finance, Linh is familiar with this phenomenon. Currently, she uses digital banks, e-wallets, and buy now, pay later options proficiently.

In particular, for high-value items, buying now and paying later can meet urgent needs. “The biggest purchase I’ve made so far is a phone. This is also considered an investment to make my work smoother. A phone worth 20-25 million VND is different from a phone worth 8-10 million VND. Instead of spending a large sum of money just to buy something, I use the buy now, pay later option,” she said.

Gen Z - the generation that likes “quick, easy, and efficient” shopping

Hong Nhung (25 years old, Ho Chi Minh City) also shared that due to the nature of her job as an MC, she needs to invest in clothing and cosmetics. “I use the SPaylater pay later wallet on the Shopee platform and find it extremely convenient. Before, I spent a lot of money on initial purchases, but now it’s different because I can pay in installments. I only need to pay a portion of the amount, and the rest will be paid later,” she said.

When asked about the benefits of using this payment method, Nhung said that mobilizing funds from other sources to pay for consumer spending helps her optimize cash flow, not spending too much at the same time, and also helps save money. “Many times I have enough money but I still buy now, pay later. The excess money can be invested in other forms such as securities,” Nhung revealed.

Another point that makes Nhung feel convenient when using the SPaylater pay later wallet on the Shopee platform is the “quick, easy, and efficient” procedure. Nhung registered for the buy now, pay later service on SPaylater to make purchases on the Shopee e-commerce platform and made payment after receiving the electronic statement. She admits that Gen Z is the generation that “lives without waiting” and is ready to avoid procedures related to documents and forms.

The convenience of using the SPaylater pay later wallet on the Shopee platform is the “quick, easy, and efficient” procedure (illustration: Hoang Trieu).

According to research, SPaylater is a payment method linked between Shopee and TPBank. This method allows buyers to pay for products in installments over time, reducing financial pressure on customers, while ensuring security and safety for users.

In addition to this method, customers can also experience payment methods on various digital platforms, such as MoMo - another unit linked with TPBank.

When using the buy now, pay later method on MoMo, users will be advanced money to make purchases, pay bills, and experience services. At the end of the month, after reconciling the electronic statement, customers can make the remaining payment. Additionally, customers can choose to convert to installments, make minimum payments to avoid late payment penalties, and report bad debts to CIC.

Those with TPBank accounts can access a variety of preferential interest rate loan packages at counters or at LiveBank 24/7 to meet individual customer needs, as well as other superior products and services from the purple bank on digital platforms.

Pay later wallet: Ensuring transparency

According to a report by Research & Markets on the Vietnam market in 2022, buy now, pay later is expected to grow at a rate of 45.2% during the 2022-2028 period.

In particular, for Gen Z - the “live for the present” generation - “if you like it, buy it” is the clearest expression of this group. In consumption, they know what they want and desire to satisfy their personal interests. This is a generation that is not passive and waits for their salary to shop like before.

The development of e-commerce and online shopping habits are also driving the development of pay later wallets. Hong Nhung said that for herself, at the beginning of her career and without much available income, using the pay later wallet is the most optimal way of life.

For Ngoc Linh, she considers using a pay later wallet to be the best way of managing expenses, balancing life and work. “The pay later wallet ensures transparency in costs and payment terms,” she said.