The retail landscape is undergoing a transformative shift, and it's Generation Z that's leading the charge. Born between the late 1990s and early 2010s, this generation is making a lasting impact with their unique shopping habits and incorporating a resolute digital-first mindset.

Businesses in today’s marketplace must pay close attention to this influential (and influencer-minded) audience. To thrive in this dynamic environment, they need to not only understand but also cater to Gen Z's distinctive financial mindset, their pursuit of financial independence, and their penchant for alternative payment options. In this comprehensive guide, we will delve deep into the core aspects of Gen Z's financial life and explore how embracing alternative financing options, such as lease-to-own (LTO), can help you win them over.

Gen Z Insights

Generation Z, aged approximately between 18 and 26, is embarking on their journey toward financial independence, yet they are met with significant economic challenges. This includes surging inflation rates, skyrocketing college tuition costs, the ever-present burden of student loans and a highly competitive job market. What compounds their financial stress is the constant worry of meeting daily expenses ; a staggering 51%(1) of Gen Z individuals find themselves barely living from one paycheck to another. Amidst this relentless financial struggle, the notion of saving and investing often seems like a distant dream.

However, even in the face of these financial burdens, Gen Z highly values its independence when it comes to financial decisions. This fierce commitment to financial autonomy profoundly shapes how they approach shopping and spending.

Gen Z Shopping and Payment Preferences

As the dominant consumers of the future, Gen Z is poised to redefine the retail landscape, because their shopping habits are marked by a preference for a harmonious blend of online and in-person experiences. 

What also sets Gen Z apart is not just flexibility in their payment options, but their strong inclination toward the use of digital payment methods such as digital wallets, mobile payment apps, and flexible shopping solutions. So naturally and notably, they tend to frequent businesses that cater to these payment preferences and alternatives. This underscores the urgency for forward-thinking companies to adapt swiftly to this consumer base — otherwise they risk losing business to competitors who are willing to meet these alternate payment solutions.

Winning Gen Z with Lease-to-Own

A considerable segment of this generation has limited to no credit history, making them hesitant to accumulate credit card debt. Additionally, they often find it challenging to make substantial purchases since they have yet to reach their prime earning years. So to capture Gen Z's attention and secure their unwavering loyalty, it’s clear retailers must provide them with the most relevant payment solutions available. 

For these consumers, lease-to-own (LTO) solutions offer an enticing proposition that other payment options may not: 

It enables them to get the products they want without having to make sizable upfront payments.

With lease-to-own ; customers have a variety of payment options and lease lengths so they can choose the one that best suits their financial needs. 

It's essentially a path to ownership that doesn't include the difficulties and limitations associated with traditional financing.

How Lease-to-Own Works

Understanding the mechanics of Lease-to-Own is crucial to appreciating its appeal to Gen Z. This payment method allows customers, especially Gen Z, to acquire products without the need for substantial upfront payments. With lease-to-own, customers can choose to lease an item for a specified period, typically with manageable monthly payments. They can purchase the product outright or return it at any time during the lease. This flexibility aligns perfectly with Gen Z's desire for immediate access to products while retaining financial freedom.

What Can You Shop for with Lease-to-Own

One of the alluring aspects of Lease-to-Own is its versatility. This payment method extends across a wide array of product categories. Whether it's electronics, furniture, appliances, or even vehicles, Gen Z can leverage lease-to-own to upgrade their tech gadgets, furnish their first apartments, or acquire essential appliances.

Why Lease-to-Own is Gen Z-Friendly

The appeal of lease-to-own for Gen Z goes beyond flexibility and product selection. It offers a pathway to responsible financial management, a value that resonates deeply with this generation. Gen Z views lease-to-own as a means to shop freely while prudently managing their finances. It allows them to become owners in a manageable timeframe.

Offer Acima Leasing’s Lease-to-Own Solution* to Capture Gen Z Customers

As Gen Z continues to dominate the consumer landscape, it's imperative for businesses to stay ahead of the curve. Winning over Gen Z consumers with alternative to financing options like lease-to-own can set your brand apart and create a lasting connection with this generation.

This is where Acima Leasing steps into action. By considering Acima Leasing as an alternative to conventional financing, you can not only stand out but also earn the trust of digitally savvy Gen Z individuals who are seeking more than just quality products, but a quality customer experience. Whether you’re a brick-and-mortar business, online retailer or both, Acima Leasing gives you all the tools you need for easy set-up and marketing lease-to-own options to this audience right away. Then, you can start driving new traffic to your store or site and reap the revenue rewards.

Embrace alternative to financing options, expand your customer base, and stay ahead of the competition: Learn more about Acima lease-to-own solutions and discover how we can help your business succeed.