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NEWS AUSSIES TURN TO BNPL IN THE PANDEMIC’S WAKE More than 70 per cent of surveyed Australians are more conscious of their spending now than in pre-Covid-19 times with many taking to buy-now-pay-later (BNPL) services, according to new research commissioned by Openpay. The research, involving 1,000 people living in Sydney, Melbourne and Brisbane, found that 61 per cent of surveyed Melburnians and Sydneysiders have limited themselves to ‘essential spending’ only, compared with half of those living in Brisbane. Spending that is considered ‘essential’ now is said to be “largely consistent” across the three cities, as is the use of BNPL services, with 60 per cent of surveyed Australians using BNPL to take care of their families and their pets’ health. Thirty-one per cent of respondents are using BNPL to service their cars, with one in 10 using a BNPL service to pay for education and groceries. This, says Openpay, follows an increase in the use of BNPL services since the start of the pandemic, with the report revealing that nearly a quarter of people who held BNPL accounts in Melbourne and Sydney have begun using them only since the Covid-19 outbreak. Thirty-one per cent of respondents reported having at least one BNPL account, and of these, around a third held more than one account. Overall, it’s those in Melbourne that are financially the hardest hit, says Openpay, which could be due to the current lockdown restrictions, with 38 per cent of surveyed Melburnians stating they had used their BNPL service within the past week, compared with those in Sydney (32 per cent) and Brisbane (24 per cent). Nearly half of respondents in Melbourne (45 per cent) shared that they use it weekly or more often, versus 34 per cent in Sydney and 22 per cent in Brisbane. One in three of those surveyed believe they will be back to pre-Covid spending habits within the next six months, while about another third think it will take six to 12 months. One fifth of those surveyed think it will take one to two years. AUSSIES ADAPT TO DIGITAL New global research from digital identity company ForgeRock has evaluated how consumer behaviour has changed and what digital activities they have engaged with since the start of the pandemic, as well as how they access apps and accounts. According to the research report, ‘The new normal: Living life online’, Australians “significantly” increased digital adoption, with 61 per cent of those surveyed signing up for apps or online services in grocery, 58 per cent in healthcare, 61 per cent in retail, 71 per cent in education, 60 per cent in entertainment and 67 per cent in food delivery services. While 40 per cent of surveyed Australians say they will use more digital services after the Covid-19 pandemic, 64 per cent indicate they would revert to in-person experiences for grocery shopping, highlighting that recent online growth may be short lived, says ForgeRock. Other key Australian insights include: • Offline-only activities being replaced. Digital service adoption increased by at least 15 per cent across all sectors during the Covid-19 pandemic with 26 per cent of new apps and services being embraced to replace previously offline- only activities. • Retailers enjoy digital boon. Sixty-one per cent of surveyed global consumers (and 61 per cent of surveyed Australians) reported adding new retail apps and services during the pandemic, one of the top five sectors for growth. • Work will keep older generations engaged. Surveyed Australians aged 55-64 and 65-plus were most keen to return to using offline services (29 per cent and 22 per cent respectively), indicating that organisations have work to do to keep these generations engaged online post- Covid-19. OCT, 2020 RETAIL WORLD 15