The younger generations (Generation Z and Millennials) are always shaking things up, with their unique consumer spending habits and consumer behavior often leading to major disruptions in the financial sector. The buy now, pay later model is just one example of the ways the younger cohorts are shifting the needle. Another major issue consumers are facing is the ways that payment cycles are sent out, especially when waiting around for payday is not an option when life happens.
YouGov Plc, on behalf of Chime, the San Francisco-based fintech company, conducted a study surveying more than 2,400 U.S. adults. The Chime report highlighting the “Forced to Miss Out” phenomenon found that 43 percent of people said they have missed out which the survey describes as having “missed events, product purchases, or services/repairs because they were waiting for a paycheck in the past 6 months.”
Younger generations are the most likely to skip, with 59 percent of working Gen Z and 54 percent of working Millennials reporting to have missed out. With 58 percent of all consumers surveyed reporting missing planned gatherings or events because their pay cycle didn’t align with the timing, 63 percent of consumers foresee similar issues arising in the next six months. And this expectation is an across-the-board issue, with 59 percent of Gen Z, 61 percent of Millennials and 67 percent of Gen X reporting they will miss out again.
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“The ‘Forced to Miss Out’ report reveals a significant challenge for many working Americans, especially younger generations like Gen Z, who are disproportionately impacted by pay cycles,” Janelle Sallenave, chief spending officer at Chime, told WWD. “Nearly a third of Gen Z workers have seen their pay schedules disrupt their social lives and as many as 60 percent expect this to continue.”
The number-one absence among friend-related events is birthday celebrations (41 percent of consumers) with dinner and drinks (40 percent) closely following the social events consumers reported they were missing. Moreover, 21 percent of consumers said they had to skip out on important but non-emergency services such as home repair, auto repair or veterinary care. And with family-related events, 41 percent of Americans surveyed said that they missed out on attending family holidays such as Thanksgiving, Easter, Christmas or Hanukkah.
To combat this, 45 percent of Americans working full-time or part-time said they have used a credit card to avoid missing out, with people more likely to turn to credit cards to fund unexpected expenses and new opportunities.
Hence, Chime sees the opportunity to bridge the gap by helping provide banking solutions for younger consumers: including its SpotMe, no-fee overdraft of up to $200, Get Paid Early, giving members their paycheck two days earlier with a qualifying direct deposit, and MyPay, allowing access for up to $500 of pay between payday, per pay period.
“Missing out on gatherings, vacations, and even important services like home repairs underscores the urgent need for flexible financial tools that can bridge these gaps,” said Sallenave. “It’s clear that traditional pay structures are no longer aligning with modern consumer needs, which is why innovations like Chime’s MyPay are so crucial. These tools aim to empower individuals to take control of their finances and avoid missing out on the moments that matter most.”
