Young buyers are emerging as the sustainability generation and inspiring circular economy solutions as they increasingly influence how companies design their strategies and allocate capital.
According to data provided by the UK-based FinTech company TwigNearly 60% of Millennials and Gen Z consumers already consider the resale value of a new item at the time of purchase, and for more than 30% of these younger shoppers, the resale of older items to finance new lifestyle products is their favorite shopping. style.
Building on this growing trend and aiming to redefine the concept of ownership by increasing the recirculation of goods, the London-based company has gone beyond the average banking services offered by FinTech companies to empower young consumers to cash in and offload fashion and electronics. products they no longer want and get an instant valuation for those assets.
“If you are happy with the price, you can just swipe right and the money is transferred to your account immediately before we even ship the items. [We’ve made] it’s as easy for someone to convert an iPhone 11 Pro to dollars as it is to convert pounds to dollars,” Geri CupiCEO of the company, told PYMNTS in an interview.
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To further help young consumers build a sustainable lifestyle, the next-generation FinTech recently partnered with Milan-based startup buy now, pay later (BNPL) Scalapay to enable Scalapay customers to resell fashion products. and electronic and to be paid instantly by Twig.
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For environmentally conscious Gen Z and Millennial consumers, making a purchase with the guarantee that they can instantly resell at any time makes the shopping experience even more appealing and can be seen as the reason why the solution is spreading quickly with buyers, Cupi noted.
Read more: Twig raises $35M in Series A to fuel international expansion
In less than a year of launch, the young startup has already had more than a million app installations and registered more than 500,000 users. And earlier this year, the company announced a $35 million Series A funding round aimed at boosting its expansion in Europe and the United States and accelerating its delivery of Web 3.0 green payment infrastructure for its users.
Tectonic shift in traders behavior
According to Cupi, young shoppers’ desire for sustainable and eco-friendly products and services is driving a “tectonic” shift in merchant behavior as many have added more environmentally friendly circular payment solutions.
“Once our users have redeemed products, they often use some of that revenue to buy more experiences or pay tuition, and that doesn’t get any more circular than letting consumers buy new experiences. or new items using their old items instead of cash,” he noted.
While it helps consumers give their old products a second life, from the merchants’ perspective, he said it was their way of enabling consumers to live a more circular lifestyle without having a negative impact. on their results.
The FinTech company has also launched a business-to-business (B2B) initiative called For the Earth by Twig to help companies further improve their sustainability practices by helping companies and their employees achieve carbon neutrality.
As Cupi said, “We want to give back to the ecosystem and empower consumers and businesses to behave more sustainably.”
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NEW PYMNTS DATA: THE CUSTOM PURCHASING EXPERIENCE STUDY – MAY 2022
About: PYMNTS’ survey of 2,094 consumers for The Tailored Shopping Experience report, a collaboration with Elastic Path, shows where merchants are succeeding and where they need to up their game to deliver a personalized shopping experience.
