When you think of financing, you think of credit cards. You get to pay for something upfront using the balance on your card, but you really aren’t paying for it unless you pay the balance in full each month. If you let the balance roll over into the next month, you’re essentially financing whatever you buy. You pay interest on it, you pay it off in small increments over time, and you focus on things like saving your cash and budgeting smaller payments for big-ticket items. However, that’s not how millennials focus on financing.

Millennials are less likely to fall into the trap of credit card debt that people were even a decade ago. That’s not to say millennials aren’t using financing as a means of paying for what they want, but they aren’t using credit cards to finance the items they buy. In fact, millennials are using other forms of financing. They’re leasing their cars. They are financing big-ticket items with new retailer financing options, and they are changing the face of the financial world. People want to know why.

It’s Easier

It’s a simple concept, but it’s a true concept. Nontraditional forms of financing are more efficient than traditional methods of financing. You don’t need a credit card in your wallet if you use Paypal Credit, for example. Almost everyone has a Paypal account these days so they can make purchases and accept payments online, and many millennials choose Paypal Credit at checkout to make their purchases. They need only log into their Paypal account to choose the credit option to pay, and they enter no personal information. It can be done with the push of a button or a fingerprint on most smart phones, and it takes no time at all. They can finance for 6 months without paying interest, which means not paying more than the item is worth but also using more time to pay.

It’s Often Safer

While still discussing alternative financing options such as Paypal Credit, it’s simply easier. Financing options such as Paypal Credit and Affirm allow you to finance any purchase without entering any personal information on any front, which is safer. There are no credit card numbers to enter and worry about becoming hacked. There are no Social Security Numbers needed for any purchase other than your first, and it’s safer than traditional methods of payment.

There are various reasons millennials are using the new way of financing to pay for their items. It’s because they don’t make as much as they way. It’s because they spend so much on student loan payments each month. It’s because they have other obligations, but they still want what they can’t afford. Lastly, they simply don’t want to go into credit card debt buying things they simply cannot afford. It’s a new way of lending, and many retailers are quickly learning to accept this as the new norm in their storefronts and online shops.