Citizens Pay Offers Flexible Pay Options Amid Inflation Concerns

With 40-year-high inflation rates and concerns of an economy that could enter a recession, consumer spending is uncertain, and people are demanding flexible payment options more than ever. Services like Citizens Pay and other Buy Now, Pay Later (BNPL) options are quickly becoming vital in order to make larger purchases more manageable. 

Nearly 60% of consumers say inflation is causing them to seek out these BNPL solutions when it comes to major purchases. “It’s harder than ever for people to afford a bigger ticket purchase,” Tom Carter, Head of Business Development said. “Citizens’ Pay gives people the ability to afford something they might have been able to buy six months ago but are struggling to pay for all at once today.”

Furthermore, according to a National Retail Federation survey, 47% of consumers are switching necessities to cheaper alternatives. 40% report to cutting back in other areas so they can afford their necessities. With shoppers tightening their belts, Citizens Pay can make big purchases more manageable.

During the holiday shopping season, CBS News notes that electronics spending dropped roughly 5%. Some may speculate that inflation is impacting this as shoppers are shifting their spending to necessities.

Many consumers are instead turning to experiences and travel as many parts of the world reopen after two years of restrictions. This has caused more experience-based purchases, such as vacation packages, flights and tourism. This reopening, combined with looming recession concerns, means many shoppers are cautious around discretionary spending. 

A recent Mintel survey noted that only 20% of consumers say they plan to buy a big-ticket electronics item, while 20% also report they are considering buying a major household appliance. Three-quarters of respondents say they are worried about inflation. Many consumers, especially during market volatility, prefer the security of cash in their account and a longer payment tail. But BNPL options like Citizens Pay can help.

Citizens Pay is uniquely positioned to help in these instances, with partnerships in the Consumer/Electronics space alongside Microsoft, Xbox, Bedrosians and Vivant, including a nationwide program to help people afford the new Xbox Series X in Walmart, Target and other retailers across the country.
Citizens Pay is unique to its competitors because we find success when both the retailer and Citizens Pay work together to solve a business/buying experience problem that their customers are facing. Citizens Pay delivers:

• A seamless integration for retailers, including a dedicated implementation team that works alongside retailers to develop a custom experience based on specific customers’ needs.
• Development of trusted relationships between teams with a common focus on achieving the retailer’s objectives
• A team of financial experts, backed by a leading national bank, ready to help retailers find the right financing solution for their clientele, and adapt it as needed.

This adaptability and longevity means consumers and retailers can trust that Citizens is in it for the long haul. It also means when consumers are looking at big-spend items, they’ll have a choice they can trust, backed by over 150 years of lending experience. Because Citizens is an established financial institution, consumers can be assured they are getting the best financing terms and interest rates available.

While more people are looking to avoid credit card debt, BNPL options are not viewed in the same light. Because BNPL application processes are faster and late payment fees aren’t as prevalent, many consumers view them as less risky than racking up credit card debt. Additionally, because the application process for BNPL usually doesn’t involve a hard credit pull, many consumers view it as easier overall.

In a study earlier this year, Credit Karma found that 34% of respondents have used BNPL as a way to avoid adding to their credit card debt. More people are turning to this solution as a way to manage their larger expenses without racking up the fees credit cards can have. 

Furthermore, less than 20% of BNPL shoppers have missed a payment, showcasing the stability of these consumers. These BNPL options can help consumers obtain the big-ticket items they want without sacrificing financial flexibility. Retailers can showcase their flexibility and willingness to work alongside consumers by offering these payment options.

In a recent RFI Global study, 37% of respondents said they were concerned with meeting their daily expenses. This same study showed the trust consumers have in their financial institutions, as 53% of consumers said they’d consider a BNPL service as “extremely appealing”.

Some of the reasons the survey cites for this favorable outlook include that bank-based BNPL options are more secure, more reliable and accepted throughout more retailers. While BNPL is a sought-after service by consumers, they are clear that just any BNPL option won’t do. Ones backed by trusted financial institutions are the preference. 

More consumers are finding BNPL solutions the ideal option for both financial flexibility and long-term financing. In times of uncertainty, like high inflation, it can be the only way some consumers consider “luxury” items such as new consumer electronic or home furnishings purchases. Citizens Pay is uniquely suited to help retailers offer the customized, easy payment plans to help their customers shop confidently.

With Citizens Pays’ subscription-based services, which can help drive trade-ins and upgrades, retailers can offer customers a comprehensive set of payment options to fit a wide range of budgets

Citizens Pay works with retail partners to provide the best payment terms on big-ticket items like new TVs, gaming consoles, new furniture or beds. The program offers transparency by showing what someone’s monthly payments will be before they check out, allowing them to make informed purchasing decisions and reducing the risk of missed payments.

Citizens Pay also offers a seamless open line of credit. Once a customer is approved, they can use that line on multiple big-ticket items. They can purchase a new TV today and a new washing machine a month from now on the same line of credit, with the same transparency and ease of use.