While it is axiomatic that Millennials think differently about spending money, what is not as well known is why they think differently about money. One Millennial who definitely has insight on this topic is Afterpay’s 28-year old CEO Nick Molnar. We asked Nick to talk about the “why and how” of Millennial spending habits, what makes them fiercely loyal to a brand, and how retailers can profit from combining the these two concepts.

1. JULY 2018
Unlocking the Buying Power
Of Millennials

2. Millennials are misunderstood

3. From the outback

4. A retailer at heart

5. Installment Payments Are Not New
50%
Higher Customer
LTV
Internal Company data

6. A defining moment for Millennials

7. • In 2017, total outstanding student
debt was 44% higher than total
outstanding credit card debt
• Approximately 44m Americans owe
$1.48t in student loan debt
• From 1990 to 2015 there has been
an increase of 164% in the cost of
a bachelor degree
The Burden of Student Debt on
Millennials is Significant
Education Department data, Federal Reserve

8. Millennials are
more scared of
credit card debt
than they are
of dying
8 CNBC via Credible.com, February 13, 2018

9. The percentage of Americans under 35 who
hold credit card debt has fallen to its lowest
level since 1989
63% of millennials do not own a single
credit card – 1 in 3 has never even applied
Today there are 2x as many debit card
transactions as credit card transactions
9 Bankrate Financial Security Index, June 2016; Federal Reserve report
The Recession Led to a Complete
Shift in Spending

10. 10
Millennials Prefer Debit Cards &
To Spend Their Own Money
Debit cards are growing
faster than any other
payment type
85% of Afterpay’s orders
use debit cards, not
credit cards
US Federal Reserve Report

11. 11
The millennial population is 80M people
By 2025, millennials will be ½ of all salary earned income
By comparison, Boomers will only be 6% of salary earned
VISA – MARKETING CREDIT + DEBIT CARDS TO MILLENNIALS
The Power Has Shifted
to the Millennial Consumer

12. Millemmas

13. 13
1. Millennials have never experienced high
unemployment
2. We love instantaneous gratification and
real-time feedback
3. We spend money responsibly
4. We are vocally loyal to brands which have
earned our support
5. We live for a purpose and want to leave a
legacy
The Way We Live Is Different

14. Great product + exclusivity = cult loyalty
We are vocally loyal to brands who have earned our support

15. 15
Key cult drivers:
1. It is all about product
2. Limited supply collaborations
3. When a product sells well, they never
make it again
4. Product resell market prices are 1200%
higher
The Streetwear Cult - Supreme

16. 16
Key cult drivers:
1. Only direct to consumer
2. Product development: Customer-
lead through Instagram
3. Cult customer marketing: 70% of
online sales come through peer to peer
referrals
4. Pre-sale: 10,000+ person product
waitlists
5. Exclusivity: Only 24 products
The Beauty Cult - Glossier

17. 17
Can the act of paying for an item build a cult customer base?

18. A Millennial Lifestyle Payment Product

19. 250k+ Members In Customer Led Fan Groups

20. 20
Emma
This is just a quick little email to let you know that you have
helped me in so many ways this year. I've been able to get my
kids new chairs for school, new shoes, computer parts, a new
car battery when there was no other way I could afford it and
was in desperate need of one, a hard drive for my husbands
computer so he could get through uni...all these things have
only been possible with your Afterpay service. So thank you.
Also, my credit rating has improved as I haven't had to ask for
loans.
You have helped our family more than you can ever know.

21. 21
Resulting in frequent, loyal, and highly engaged shoppers
The Impact of Making Payments
Relevant to Your Customer
85%
Repeat customer
rate
22 %
Increase in
conversion rate
+ 20 %+
Increase in average
order value
Internal Company data

22. 22
AOV uplift -
More than 30%
Increase in
revenue / session
Rolled out after 1 week across all
product pages, home page
promotion and email campaign
Dave Hayne, Chief Digital Officer,
Urban Outfitters Group
Millennial Fashion & Lifestyle

23. Changing spending habits + millennial mindset

24. 24
Thank You