Grounded Kiwis sink holiday funds into their homes
November 6, 2020 – With international travel on hold, a survey by buy now pay later provider Payright has found Kiwis are choosing to instead spend their holiday dollars on improving the look, feel and comfort of their homes.
A poll of more than 500 New Zealanders shows the impact of COVID-19 and travel restrictions in place has seen more than a quarter (27%) of people investing in home renovation, DIY projects (26%) or appliances/technology (26%) instead of travel.
Since the pandemic started, one third (30%) of Kiwis are also purchasing more using buy now pay later (BNPL) options, with more than half (57)% of people believing BNPL is a better way to manage money for transactions over $1,000.
Payright is one of the few BNPL platforms to specialise in higher value transactions, from $1000 and up to $20,000 for considered purchases such lifestyle and home improvement products and services.
Payright co-CEO, Piers Redward, said while there’s far fewer COVID restrictions in New Zealand compared with other parts of the world, international travel remains off-limits.
“Frustrated travellers are making the use of extra time and funds to make their house a true home. From updating living spaces and room features to undertaking serious structural changes, it seems Kiwis are making use of BNPL to finally afford, and budget for, key home renovations.”
The survey shows high demand for BNPL in the ‘homewares, furniture and white goods’, ‘electronics’ and ‘home improvements and trades’ categories, (at 56%, 53% and 53% respectively), particularly in managing the cost of purchases over $1,000.
Payright co-CEO, Myles Redward said despite how well the country was managing the health pandemic, consumer and business confidence was impacted.
“We want to make sure Kiwi businesses have every opportunity to grow their sales through platforms like ours. We also wanted to make sure our service is available to New Zealanders better manage the cost of higher purchases at this time.
The survey also found that:
• Half (52%) of millennials favour BNPL over credit cards, yet uptake is also strong among 35-44- and 55-64-year olds, with more than a third (38% and 34% respectively) preferring the services. Women (40%) are more likely to prefer the service than men (33%).
• Uptake of BNPL options is growing, with more than a third (37%) using a service in the past and intending to again, and a further 21% considering using one in the future.
For additional information or to request an interview with Piers Redward and Myles Redward, please contact:
+61 423 939 203