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Afterpay app helps generations so they can buy now, pay later

New payment method helping generations
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Posted at 11:00 PM, May 11, 2022

According to research done by Afterpay, Gen-Z and Millennials currently make up 35 percent of the total retail spent in the United States.

But with inflation at an all-time high, this company is giving you the option to buy now and pay later.

Afterpay allows you, in just the tap of a button, to pay a portion of the price now and pay the rest later, so you don't put a hole in your pockets.

"I am pre-approved, it tells you how much for," said Ronee Martinez as she shows us her Afterpay account.

Martinez, a Gen X'er, said she heard about Afterpay at the start of the pandemic.

“Because you know, we couldn’t go out, we couldn’t do anything so I still wanted stuff to buy and that was the easiest way. And it was the cheapest way in other words," said Martinez.

What is Afterpay and how does it work?

First, download the app from your app store.

Once it's downloaded, you follow the easy steps and answer the questions.

After that, you’ll know instantly if you’re approved.

You can then let the shopping spree begin by shopping online where they have over 122,000 merchants, or you can shop in store where Afterpay is accepted.

Martinez told us using the new payment option has really helped her during these times where inflation is hurting her pockets.

“Things are costing more. So let me spread the payments out of what I want to buy for food. I mean, it makes more sense," said Martinez.

With this new payment option, you’ll be charged the first of four payments and then you pay each installment every two weeks, up to six weeks.

According to Afterpay, Millennials were the first to embrace Afterpay in the U.S.

While they account for the majority of purchases, other generations are catching up.

“You save money, too for some reason, because you don’t spend a whole amount of cash at that one time," Martinez said.

With staying on top of your payments, your limit can increase followed by rewards that you can earn within the app.

In a statement from Afterpay, they say people are turning to these forms of payments because:

"The growth of BNPL has been fueled by a generational shift in spending preferences, where Gen-Z and Millennials are increasingly credit averse (wary of high-interest and revolving debt cycles) and favor debit cards," the statement said. "These younger generations are telling us they want to pay for the things they want and need using their own money, instead of turning to expensive loans or credit cards with mounting interest. That said, they still want and need the flexibility of being able to pay over time not afforded by traditional credit."

The dangerous part Martinez told us, is not getting addicted.

“Luckily, they do have a tracking system set to where you can look it up and see. But if you are not paying attention, yeah, you are going to get that taken out of your account and you’re like 'what?'" Martinez said.

The app is free to download and also has some local small businesses.