The credit industry’s favorite acronym, BNPL—for buy now, pay later—is popular among younger consumers, with 37% of Gen Z adults and 32% of Millennials reporting that they’d used BNPL for purchases in the last month, according to a Morning Consult study cited by USA Today.

But the financial instrument is far from a panacea, with the same study finding that one-third of BNPL users have used credit cards to pay off their BNPL, “which could create a vicious cycle that’s hard to overcome,” Morning Consult financial services analyst Jaime Toplin told USA Today.

Credit Karma, meanwhile, found that in the last quarter of 2023, while debt increased for all Americans, it increased the most for Gen Z (19.39%) and millennials (13.4%).

One way to not spend more than you have, of course, is to forgo credit cards, and that’s the idea behind the startup Catch, a payment system that links to debit cards and bank accounts. Catch, which shoppers encounter with other payment options when they check out online, also offers an element of credit-card reward points—namely earning points on purchases that can be spent on future purchases.

It’s a new take on payments that also incorporates elements of loyalty programs. So we sat down with two of Catch’s founders to learn how it works, and why retailers like PacSun have signed on.

Keep reading here.—AAN

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Spring is known for warmer weather, flowers, new beginnings, and burritos—apparently.

Ahead of its busiest time of the year—March through May—Chipotle is gearing up to bring 19,000 new employees into the fold, and to sweeten the pot, the company is offering some perks geared toward younger folks.

• The company announced last week that it will 401(k) match up to 4% of the salary of an eligible worker who’s making student loan payments, private or federal. Existing employees can become eligible after a year with the company and at least 1,000 hours worked, according to Business Insider.
• Additionally, Chipotle is offering employees a new debit card from Cred.ai that they can use to build their credit with no interest or fees.

Nearly three-quarters (73%) of Chipotle’s more than 110,000 workers are Gen Z. The company is offering these perks in part because, as CNBC noted, its hiring goals are even more lofty than this time last year.

Keep reading here.—KM

We may still be collectively debating whether a recession is here in the US, or will ever be, but for British luxury retailer Paul Smith, which just shuttered its three standalone boutiques in Germany, the culprit is clear, WWD reported.

The retailer, which has been operating in the country for the last 10 years, has witnessed Germany’s economy shrink post-Covid and ultimately became the only European nation hit by recession.

“The leases for our shops in Germany were all negotiated pre-Covid when shopping habits were vastly different from today,” a Paul Smith spokesperson told WWD. “The decision to close shops is never easy particularly given the dedication and efforts of all of our local staff.”

While luxury as a whole has suffered as inflation tightens its grip and consumer spending dips, some fashion retailers have had a harder time than others.

Keep reading here.—JS