COVID-19 ‘Buy Now, Pay Later’ Fights
We pay a price for not exercising, but conversely, gyms and online classes aren’t free. The more specialized and exotic the workout routine, the higher the expense, in general. This is also true for workout clothes – the price of the product is accordingly.
Enter ‘buy now, pay later’ (BNPL), the point-of-sale (POS) 2.0 form of loan that has become a retail sensation around the world in recent years. Originally intended for consumer products, the terms BNPL extend to all kinds of things, including home exercise.
Dive deep into this topic, April 2020 Buy Now Pay Later Tracker®, produced in collaboration with Afterpay, documents how fitness is shaping up to be a strong category at BNPL. It is now essential, with COVID-19 blocking tens of millions of people at home while gyms, stores and studios are empty.
Do not worry
“Americans appreciate many forms of aptitude, 51.6 percent of the population exercising 30 minutes a day at least three times a week. However, gym memberships and fitness class prices can add up, leading many fitness enthusiasts to consider home gyms, ”the report says. “The costs associated with these investments are however sufficient to stop such plans in their tracks.”
Distance training brands like Bowflex and Peloton were well placed for the social distancing order of COVID-19 from the get-go, with pre-existing live broadcast class menus and, of course, their home gym gear. eponym. Helping Americans pay for tech training gear – and the lululemon clothing and Balenciaga sneakers that go with it – is where BNPL enters.
“BNPL solutions allow young shoppers to buy the items they want and need using their own money and paying over time,” said Nick Molnar, US CEO and co-founder of AfterPay , at PYMNTS. “It is for these reasons that we are seeing buy-now and later-pay solutions adopted so quickly in the fitness market and in almost every retail category.”
Looking at yoga, for example, “The average American yogi spends $ 62,640 on [yoga accessories and classes] in her lifetime, and that barrier could be reduced, ”Jessica Thompson, Founder and CEO of Yoga Mat eTailer, YOGO, said in the last Buy Now Pay Later Tracker®.
Fitness during the COVID-19 era
COVID-19 notwithstanding, Millennials are now – and will remain for some time – the big spenders on fitness equipment and memberships. But all this health is extremely expensive.
“The often high cost of exercise options can dampen this enthusiasm”, April follow-up says, adding, “A study found that average monthly fitness expenses exceed $ 155, which equates to $ 112,000 over a lifetime. That price is higher than a four-year public college degree – which currently costs $ 98,440 on average – and includes both gym memberships and fitness classes like Pilates or Spin. Consideration of luxury options like Equinox or SoulCycle drives up the prices even more. “
In order not to get a financial boost while getting in shape, manufacturers of fitness equipment use payment plans to eliminate the burnout associated with acquiring these items. Consumers and traders, however, are drawn to BNPL for its payment terms and pricing structure.
Home fitness is experiencing a major moment because of COVID-19 lockdowns and social distancing rules, and BNPL is helping make it more affordable for millions of consumers.
“Maintaining physical shape is an extremely important investment,” the report says. “The world’s population is increasingly staying indoors to avoid the effects of COVID-19, but the mental and physical health benefits of regular exercise should not be underestimated. BNPL solutions – when used responsibly – can offer practical solutions that help fitness enthusiasts achieve their goals at home. “