When it comes to credit, baby boomers and seniors stand out for their distinct preferences. Despite being major users of credit cards and store cards, these older consumers show little interest in adopting new credit products or alternative payment methods like buy now, pay later (BNPL).
According to PYMNTS Intelligence report, “Boomers Are Leaving the Credit Market,” 77% of baby boomers and seniors have active credit cards, but they seem satisfied with what they already have.
Older consumers are more likely to use traditional credit methods, with 77% of boomers and seniors holding active credit cards. This is a far higher rate than seen in younger generations.
But when it comes to newer options like BNPL, they have little interest. Consider that only 4.5% of boomers and seniors have active BNPL accounts, which is much lower than the 18% of millennials and 16% of bridge millennials who have adopted the service.
Store cards also see higher adoption rates among older consumers, further illustrating that they are comfortable with the credit products they already use. BNPL, which is often used for flexible payment terms, doesn’t hold the same appeal for this group, according to the report.
One of the key findings is older consumers are not actively seeking new credit products. For example, just 4.1% of boomers without an auto loan expressed interest in acquiring one, compared to 9.8% of Gen X, 12% of millennials, and 10% of Gen Z. The gaps are even larger when it comes to personal loans, where only 3.9% of older consumers showed interest, while 17% of Gen X and 23% of Gen Z were interested.
Perhaps the most telling figure is just 1.6% of boomers and seniors without a credit card are interested in getting one. This indicates older consumers are satisfied with their existing credit options and are not actively looking for more.
For lenders hoping to attract this group, the focus should shift from introducing new products to offering improved versions of what they already have, such as credit cards with better rewards or lower interest rates.
Even though boomers and seniors own credit cards at higher rates than younger generations, they tend to use them less often. Consider 46% of boomers and seniors paid for a restaurant meal with credit in the past 90 days, while 50% to 56% of younger age groups did the same.
This trend continues in other categories such as groceries, furnishings, and appliances, where older consumers are less likely to use credit cards. Instead, they may prefer using debit cards or cash for these everyday expenses. This suggests baby boomers and seniors are more cautious with their credit usage, perhaps opting to avoid accumulating debt where possible.
