FlexiGroup is targeting millennials with its new Oxipay product that fulfils their desire to manage their money without racking up long-term debt.
Users can pay off their online purchases in four instalments on a fortnightly basis with no interest or hidden fees. The key difference to traditional layby is they get the product at the front end, rather than having to wait until it’s paid off.
FlexiGroup New Zealand chief executive Chris Lamers says its establishment is a response to the demand from younger customers to purchase the goods they want now while managing their money without long term debt.
“This group has access to more information about products than ever before and are very savvy about their purchasing decisions,”
“Research from Facebook’s IQ unit released in February 2017 shows millennials are diligent in paying down debt, careful with credit cards and keen to accumulate savings. Having seen family and older friends hit by debt during the GFC, 46 percent of this group say financial success means being debt free.”
Local Nielsen research shows a similar story, with Kiwis in the 18- to 34-year-old age group being debt-averse and 42 percent more likely than the rest of the population to say money is the best measure of success. They are also the main group in society working on building up their savings and they will use credit to buy the things they want but like to pay them off in instalments, rather than throwing multiple purchases onto a credit card.
But if Oxipay's launch campaign is anything to go by, millenials still enjoy shopping. The company has released a Facebook video and outdoor campaign, via Federation and Lassoo Media, featuring a young woman dressed in the latest fashions who appears to be standing on a pedestal while the camera moves around her.
For now, Oxipay is only available for online purchases but the plan is to launch an app for in-store shopping before Christmas.
Lamers says initially it’s targeting sectors like fashion, tech and lifestyle, and of Hailwood, Pagan Marie, Evo Cycles, PB Tech, Playtech, Breo, iRelax and Bohome + Roam have already come on board.
To read more about the thinking behind Oxipay, how it works and what it means for retailers, read The Register's interview with Lamers here.