
Affirm’s Research Highlights Consumer Shift Towards 0% APR Financing Ahead of 2024 Holiday Season
Affirm, a payments network that enables consumer empowerment and helps merchants drive growth, has released new research revealing key insights into consumer shopping behaviors ahead of the 2024 holiday season. The findings show a growing preference for 0% APR financing options and highlight Americans’ confidence in managing holiday budgets.
The Appeal of 0% APR Financing
According to a survey of 2,000 Americans, nearly half (48%) are influenced by the availability of 0% APR financing when making purchasing decisions. The top perceived benefits include saving money on interest (28%), making larger purchases more affordable (19%), and improved budgeting flexibility (17%).
This rising trend spans multiple categories:
- Large, One-Time Purchases: Over 40% of consumers (42%) are inclined to consider 0% APR options for major purchases like furniture and appliances, viewing it as a helpful tool for managing significant expenses.
- Electronics: Nearly 30% of respondents (28%) prefer using 0% APR financing for electronics, such as laptops or mobile devices, signaling a shift towards interest-free payment options across various sectors.
- Everyday Essentials: About 25% of consumers see 0% APR as valuable for everyday purchases like groceries and household supplies.
Generational differences also play a role in preferences for 0% APR financing. Gen Z (born between 1997 and 2006) is most likely to use 0% APR for clothing and accessories, while millennials (born between 1981 and 1996) are more inclined to apply it towards travel and experiences.
“Consumers are becoming more strategic in their spending, using 0% APR financing as a flexible, budget-friendly way to manage their expenses,” said Vishal Kapoor, Affirm’s SVP of Product. “With the holiday season approaching, we expect these offers to bring value to consumers and help merchants drive sustainable growth.”
2024 Holiday Shopping Trends and Sentiment
Affirm’s research also explored how Americans feel about their holiday shopping plans. Despite concerns about the economic landscape, 70% of consumers feel as confident or more confident about managing their holiday expenses compared to last year. Gen Z shoppers are the most confident (50%), followed by millennials (40%) and Gen X (30%).
Starting holiday shopping early is another contributing factor to consumer confidence. Affirm’s survey revealed that 40% of Americans plan to begin their holiday shopping earlier in 2024, with Gen Z and millennials leading the trend—50% of both groups plan to start by the end of September.
“Consumers are clearly looking for ways to take control of their finances, whether through early shopping or 0% APR offers,” Kapoor added. “Flexibility and transparency will be essential for a successful holiday season in 2024.”
Consumers can shop exclusive 0% APR offers from retailers like Samsung, Bloomingdale’s, and Vivid Seats by visiting the Affirm app or Affirm.com.
Survey Methodology
This random double-opt-in survey of 2,000 Americans was commissioned by Affirm and conducted by Talker Research from June 20 to June 24, 2024.
About Affirm
Affirm’s mission is to provide transparent financial products that improve lives. By building a trust-based payment network, Affirm empowers consumers to spend responsibly while helping businesses grow. Unlike traditional credit cards, Affirm clearly displays total costs upfront and does not charge late or hidden fees.
Consumers can select Affirm as a payment option at checkout, use the Affirm Card, or shop through the Affirm App, which offers exclusive 0% APR deals.
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Payment options are subject to eligibility and provided by Affirm’s lending partners. CA residents: Loans are made by Affirm Loan Services, LLC under a California Finance Law license.