Buy Now, Pay Later! Millennials Credit/Instalment Habit - Survey Report

Sometimes there is a time when we want or even need to buy something, but unfortunately we don’t have enough money to buy at that time. This condition lead us to a dilemma of choosing whether we buy the product with only limited money left, postpone the buying time, or not even buying it at all. However, for some people, they are trying to seek another solution of this dilemma by using credit or instalment facility. Therefore, they can get the product at this time, and paying with fewer amount as their current condition.

We try to map the habit of our millennial panel toward credit/instalment habit. We send the survey to our 910 respondents in nationwide. The age range of our respondents in this survey is 16-35 year old, with the composition of 48% male and 52% female respondents.

The highlight of this survey is primarily concentrate on the respondents’ segment preference on using credit/instalment facility. It seems like the gender of our respondents do not have any significant influence of their decision on using credit/instalment facility, while respondents’ age does. Apparently, the older respondents the more likely they are using credit/instalment, as well as their intention of re-using the facility in the future.

To put in detail about our respondents in this survey, 47% of them ever buy product by using credit/instalment facility. Vehicle, smartphone, and electronic product seem to be the most popular products bought by respondents in this survey by using credit/instalment facility.

Expanding our knowledge on the fact of 47% respondents in this survey who ever use credit/instalment facility, leasing and credit card seems to be the two most popular credit/instalment methods among them. Moreover, to pay the credit/instalment charge every month, ATM payment and direct payment in bank/leasing office become the two most frequently chosen methods.

When it comes to the interest rate of credit/instalment, most respondents in this survey who ever use this facility said that their average interest rate is 0% to 1.5%, while their average payment is about less than IDR 1.000.000/month. At last, the average product price they buy by using credit/instalment is about IDR 1.500.000 – 3.000.000.

The low rate of credit/instalment rate seems to be the most attractive promotional program for most respondents in this survey. At last, we differentiate the segment of our respondents in this survey into two groups, those who ever and never use the credit/instalment facility. We try to seek their motivation of doing so. For those who ever use the credit/instalment facility, their most prominent motivation is that credit/instalment enables them to pay the product in a long time, so that their money can be allocated for other purpose. In other hand, the motivation of respondents in this survey who never use the facility are more likely based on their dislike to loan and possession of credit card as a method of credit/instalment.

For more detail you can download XLS report at the button below (bahasa). JAKPAT report consists of 3 parts which are 1) Respondent Profile, 2) Crosstabulation for each question and 3) Raw Data. Respondent profile shows you demographic profiles ( gender,age range, location by province, and monthly spending). Cross tabulation enables you to define different demographic segment preference on each answer.