Gen Z & Gen Y Prefer Credit Cards over Installment Plans

LOS ANGELES–(BUSINESS WIRE)– 2017 – Vyze, a leader in cloud-based financial technology solutions for retailers, today released a new study that shows younger shoppers are not all that different from older generations when it comes to making purchases with credit – and that retailers can stand apart by being transparent, informative and attentive.

The survey of 1,000 American shoppers found that Gen Z (age 18-24) and Gen Y (Age 25-34) are comfortable using credit to make purchases and overwhelmingly prefer credit cards to monthly payment options. A full 80% of Millennial and 71% of Gen Z preferred a credit card with 0% interest for 6 months over a fixed monthly payment plan. And over half (53% of Gen Y and 55% of Gen Z) will forgo using cash for a credit card that offers 5% cash back.

Gen Z and Gen Y adults are also fairly comfortable with managing a credit card balance. Nearly 7 in 10 younger shoppers reported being at least somewhat comfortable carrying a balance on a credit card, and nearly 1 in 4 are “very comfortable” with the practice.

One important difference between the two generations: Gen Z could benefit from more information and a helping hand. This generation is the least likely to know their credit score (only 42% have a rough idea vs. 73% of Gen Y) and more likely to say they don’t have the financial information they need to make a decision about whether to apply for credit online or in the store (47% vs 26% of Gen Z respondents).

Retailers and lenders have the opportunity to better serve younger shoppers by providing more information on interest rates and promotions, as well making sure credit options are transparent and easy to use. While more than 4 in 10 Gen Z shoppers characterize retail credit cards as “helpful” or “builds credit,” the remainder find credit equally “complicated” or “misleading.” While limited by strict regulations around how to present information, companies can make the credit experience less overwhelming by simplifying the experience and adding transparency into offers and promotions.

“Despite the hype about Millennials and Gen Z, it turns out there’s not a radical difference between these groups when it comes to credit,” said Doug Filak, CMO of Vyze. “Instead, a relatively traditional view emerges across the board and these consumers are right where we’d expect them to be based on age and experience. Our advice to retailers is to adjust their programs without overcorrecting based on a mistaken sense that these shoppers are drastically different, for example by simplifying and clarifying credit applications versus moving away from traditional credit entirely.”

Vyze presented the results of the survey at in a session entitled Payments: Gen Z and Gen Y: Your Assumptions are Wrong. The TechTalk session took place on September 26 and revealed what young shoppers want and expect when it’s time to buy – and how to boost loyalty and sales by meeting shopper’s real needs at checkout.


This survey was conducted online in September 2017 by independent research firm Survata. Respondents include 1,004 adults age 18-54 located across the United States.

About Vyze

Vyze is a leading cloud-based financial technology company for retailers. By combining technology, a comprehensive lending supply, and support under one roof, Vyze delivers retailers more satisfying financing experiences for their customers, wherever and whenever they shop.


For Vyze
Renee Newby, 757-651-6554

by Veronika Clough

The smartest retailers are choosing Vyze. Find out why.

Request a Demo Chat with us