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84% Of Us Luxury Shoppers Would Find It Helpful to Pay For High-End Items Over Time Without Interest or Extra Cost

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New Klarna report discovers that 78% of shoppers see a luxury brand’s commitment to innovation as critical, with the majority seeking out mobile apps (61%) and flexible payment options (57%)

Eighty-four percent of luxury shoppers say they would find it helpful to pay for high-end items over time, without interest or extra cost. This is according to the latest report from Klarna, a leading global retail bank, payments and shopping service, which today released its The State of Smooth: Unpacking Luxury in 2022 Report exploring US consumers’ shopping and payments preferences within the luxury category.

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Based on findings of a recent survey of over 1,000 US shoppers, as well as Klarna’s proprietary shopping and app data, the report also found that 78% of shoppers consider a luxury brands’ commitment to innovation as an important factor driving purchasing decisions. Three out of five high-end shoppers (61%) want to use mobile apps, while over half (57%) are also looking for flexible payment options at checkout.

“A new generation of younger, digitally-savvy luxury shoppers is emerging, with new preferences towards how they shop and pay,” said David Sykes, Head of North America, Klarna. “While the allure of brand names (52%) and exclusivity (39%) still drive luxury purchases, today’s high-end shoppers are looking for greater flexibility and innovation throughout their shopping experiences.

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For retailers, this means investing in technologies to create an elevated, higher-touch omnichannel shopping experience, both online and in-store – from interest-free alternative  payment solutions at checkout, to the integration of virtual shopping and buy online, pick up in store services.”


  • Luxury is getting younger. There’s a new group of luxury shoppers—Gen Z and Millennials—who are even more likely to purchase luxury items than their elders. Gen Z (60%) and Millennials (63%) are purchasing luxury items at a much higher rate over the last 12 months than their elders: Gen X (46%) and Baby Boomers (18%).
  • Innovation and new technologies – from shopping in the Metaverse to engaging with AR/VR experiences – are critical. 70% of consumers who have heard about the Metaverse would be interested in shopping for luxury products there—particularly Millennials (76%), Gen Z (69%) and Gen X (67%). Luxury shoppers are also keen to engage with new technologies such as virtual dressing rooms (22%) and AR/VR experiences (18%).
  • Luxury shoppers look for smarter payment options. 4 out of 5 (84%) luxury shoppers say they would find it helpful to pay over time for luxury products. Gen Z (87%) and Millennial (89%) luxury shoppers find significant value in the availability of flexible, interest-free payment options, which allow them to split their payments over time while getting a more transparent shopping experience.
  • Brick-and-mortar retail and physical touch are critical to the luxury experience… 84% of luxury shoppers consider touching and seeing a product as essential to the purchasing experience. In most product categories, this is likely why traditional brick-and-mortar remains the channel of choice among luxury shoppers (Watches and Jewelry: 45%, Food & Beverage: 45%, Beauty: 37%, Home & Interiors: 37%, Health & Fitness: 36%).
  • …while “elevated” online shopping continues to take off. Meanwhile, 2 in 5 shoppers who bought luxury products last year did so online. But luxury shoppers don’t just want your average online shopping experience– nearly 1 in 3 shoppers want to speak with sales associates before making a purchase. For Gen X (49%) and Baby Boomers (54%), being able to pay securely also matters when shopping online; while Gen Z (57%) and Millennials (54%) care most about being able to buy online and pick up in-store.
  • Luxury shoppers care more about fast delivery than the average shopper. Consumers shopping for luxury items are over 2x more likely than non-luxury shoppers to expect delivery within 24 hours or less. Most luxury shoppers say the longest they’re willing to wait for delivery is one week (46%), with 26% saying only 2-days (48 hours).
  • Social media drives discovery and purchasing decisions – particularly among younger generations. 3 in 4 of US luxury shoppers (73%) purchased a product after discovering it on social media, a number that is much higher in younger age groups (Gen Z: 84%, Millennials: 78%). Instagram is the most popular social channel driving luxury purchases among Gen Z (77%) and Millennials (63%, while the majority of Baby Boomers (77%) and Gen Xers (63%) have purchased a high-end product after discovering it on Facebook.
  • Well-made products, brand recognition and longevity drive sales. The top drivers of purchases among luxury shoppers are higher quality materials (64%), brand name (52%), and longevity and built to last (50%). Authenticity (48%) and exclusivity (39%) are also important to luxury shoppers.

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