Young people have for some time been saying that they don’t despise credit. They simply want credit that values and understands them.
December 9, 2025
News
We’re living through a fundamental shift in the credit world. A pivot driven by younger consumers. For years, the credit landscape was built around rigid systems and burdensome rules. But Millennials and Gen Z are pushing the entire industry into a new era of consumer-first finance. At the centre of this is Buy Now, Pay Later (BNPL).
BNPL has gained serious traction because people were frustrated. High-interest rates, complicated language, and repayment structures that felt more like traps than tools. It just wasn’t working for younger audiences. BNPL flips that dynamic. It offers something simple and deeply appealing: split your payment into smaller (need I say 'affordable'?) pieces, know exactly how much you owe, and, in many cases, pay 0% interest.
Honestly, it’s no mystery. This generation’s relationship with credit is completely different from previous ones.
Young people have for some time been saying that they don’t despise credit. They simply want credit that values and understands them. This combination of ease, clarity and affordability makes BNPL a powerful alternative to traditional loans and cards that can often feel like a trap.
What’s even more interesting is how quickly BNPL has evolved. It’s no longer just about splitting a single purchase into four payments. We’re seeing the rise of more sophisticated “Flex” credit solutions and essentially the next generation of borrowing.
Players like Klarna, Zilch, and Scalapay popularised the four-installment model. Now, banks and fintechs are stepping in with products like Monzo Flex, which let users spread payments over 3, 6, or even 12 months. The structure feels like a credit card, but without the baggage: no annual fees, no foreign transaction charges, no hidden fine print.
This is where the future is heading, credit that’s modular, versatile, and completely aligned to the user’s needs. Not one giant product that is stock-standard for everyone but a suite of flexible tools consumers can choose from in real time.
This isn’t a trend or a pandemic-era spike. It’s a fundamental rewiring of how people want to borrow and pay. The shift toward BNPL and flexible credit reflects something deeper: a demand for fairness, transparency, and being valued. Younger consumers want control and they’re choosing products that give them exactly that.
Behind the scenes, platforms like Monavate are helping power this transformation. We’re providing the infrastructure that allows fintechs and banks to build and launch these next-generation credit programmes quickly, safely and at scale.
The message for credit providers is simple:
Adapt to the new rules of choice and flexibility or risk watching the next generation move on and make their moves without you.