Arro Offers Solution as Gen Z Shuns BNPL for Credit Cards in Coming Year

LOS ANGELES, Oct. 5, 2023 /PRNewswire/ — A significant shift in Generation Z’s financial habits is transforming the credit landscape, with buy now pay later (BNPL) gaining viral popularity, peer-to-peer money transfer apps becoming more ubiquitous than traditional bank accounts, and social media being the source for learning about personal finances.

Arro (, a fintech startup, is at the forefront of the changing habits of this generation and beyond by providing accessible, responsible, and affordable financial solutions aimed at increasing financial health.

Research suggests that Gen Z, born between 1995 and 2005, has resisted the use of credit cards, much like Millennials did in their younger years. However, reports have shown that credit cards are gaining traction with Gen Z and lack of innovation in the consumer credit industry puts this rising generation in the position to be just as indebted as their parents.

Recent data from TransUnion reveals that Gen Z’s adoption of credit is outpacing other generations. In the second quarter, Gen Z’s total bank credit card balances increased by 51.9% year over year, representing 5.7% of overall balances.

This increase is even more noteworthy in the context of overall rising bank credit card balances. In the second quarter of 2023, bank credit card balances reached a record high of $963 billion, a 17.4% increase compared to the previous year. The average bank credit card debt per borrower also surged to $5,947, a nearly 13% year-over-year increase and the highest level seen in a decade.

“Gen Z has every right not to trust most financial services companies. Following a generation of massive debt and worries about identity theft and fraud, Arro is changing what it means to be a trustworthy financial services company and ultimately changing the trajectory for Gen Z. We provide a more consumer first approach. Financial literacy isn’t taught in schools so we’re here addressing the gap.” – Ryan Duitch, CEO of Arro

Arro offers a credit card that doesn’t require a credit history for approval, just a bank account to apply. Arro’s unique approach encourages financial education by providing manageable credit limits that increase as users complete personal finance lessons. This innovative approach empowers individuals to take control of their financial future and build their credit responsibly.