Naturally, Australians have been tightening the purse strings due to the impact Covid-19 has had financially.
Over 70% of people are more conscious of their spending now than in pre-Covid-19 times.
New research commissioned by Buy Now Pay Later (BNPL) service, Openpay shows that over 50% of shoppers have put off essential spending due to the pandemic.
Of those BNPL services, 60% state that they believe healthcare falls under the ‘essential spend’ – be it for themselves, their children or their pets’.
“With the recent impact on personal finances due to Covid-19, frivolous spending is a thing of the past,” says Chief Marketing Officer Global, Openpay, Georgina Whalley.
“Despite this, essential items still need to be paid for and as such, we’re pleased to be able to offer Australians a ‘Buy now. Pay Smarter’ option which is more sensible, and interest-free way to pay for essentials, including healthcare and dental (for us and our pets), as well as home and car repairs during these trying times.”
Spending that is considered ‘essential’ right now is largely consistent across the three cities surveyed (Melbourne, Sydney and Brisbane). Additionally, 60% of Australians using BNPL to take care of their family and their pets’ health; 31% of people are using BNPL to service their cars, with 1 in 10 using a BNPL service to pay for education and groceries.
“Given that Australians are even worried about spending when it comes to their teeth, with 22% of those surveyed saying they have put off spending on essential dental work due to economic difficulty or fear, BNPL is a means of ensuring our health isn’t left to suffer,” says Ms Whalley.
As a result of all this financial stress, over half of respondents say luxuries like holidays, upgrading or replacing furniture and home renovations or improvements will have to wait.