‘Buy now, pay later’ platforms that make luxury fashion accessible get boost from coronavirus
Luxury fashion has a problem it needs to solve. Younger clients are the most likely to covet new collections and update their wardrobes, but they also have the least money to spend.
The cumulative impact of the previous recession, student debt and now the coronavirus has left them poorer than the previous generation – and warier of in-store credit cards.
Pay-by-instalment platforms are the industry’s solution to this conundrum. Payment service firms such as Sweden’s Klarna and Australia’s Afterpay have proliferated in response to lacklustre sales in Europe in particular, luring in younger shoppers with a “buy now, pay later” option.