{"id":4076,"date":"2021-12-23T17:34:26","date_gmt":"2021-12-23T17:34:26","guid":{"rendered":"https:\/\/digicommercegroup.com\/insights\/?p=4076"},"modified":"2022-01-05T20:38:04","modified_gmt":"2022-01-05T20:38:04","slug":"bnpl-benefits-to-businesses","status":"publish","type":"post","link":"https:\/\/digicommercegroup.com\/insights\/bnpl-benefits-to-businesses\/","title":{"rendered":"Why businesses are integrating the “Buy Now, Pay Later”"},"content":{"rendered":"\n

When you\u2019re about to make a big purchase, you may have received an offer at checkout to pay in installments and with no interest. This is what\u2019s known as a \u201cBuy Now, Pay Later\u201d offer (BNPL). As online shopping continues to grow post-pandemic effect, BNPL is becoming the most popular trend for conducting business. As matter of fact, the growing BNPL trend has benefits to both businesses and consumers.<\/p>\n\n\n\n

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BNPL Trend: How it works?<\/strong><\/figcaption><\/figure>\n\n\n\n

What is BNPL<\/strong><\/strong> and how it works?<\/h2>\n\n\n\n

Buy Now Pay Later (BNPL) is a payment option that allows customers to make purchases online, or at stores, without having to pay the complete amount upfront. This payment option allows customers to pay their purchases in installments, with an agreed specified payment term, with 0% interest, rather than paying the full amount ahead. This trend offers customers flexible payments options, interest-free installments. How can this be not appealing?<\/p>\n\n\n\n

It is not surprising to note that the BNPL payment option is most popular among Millennials and Gen Z customers. Young customers, with tight finances and less available credit, are always looking for convenient, flexible budgeting solutions that meet their limited budget. Especially without having to pay interest. Statistics show that BNPL is highly desired as a type of payment among younger demographics. This is due to their use of mobiles apps that facilitate easy, smooth shopping experiences. On the other hand, retailers are leveraging social media platforms for targeting this age group to generate sales. <\/p>\n\n\n\n

BNPL<\/strong> what you should know<\/strong>:<\/h3>\n\n\n\n

Over half of U.S. adults (aged 35 and over) stated that, they had not and that they were not, interested in this method of payment, according to Statista<\/strong><\/a>. However, younger consumers had a more welcoming approach towards such services, as about 16 percent of consumers (aged 18 to 34) used this method on a regular basis. <\/p>\n\n\n\n

BNPL payment plans, also known as “point-of-sale loan,” is becoming widely used by many companies today. Thanks to BNPL service providers such as Klarna<\/a>, Affirm<\/a>, <\/strong>and Afterpay<\/strong><\/a> have made it available for all sizes of businesses. <\/p>\n\n\n\n

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BNPL Service Providers<\/figcaption><\/figure>\n\n\n\n

In 2020, BNPL accounted for 2.1% (about $97 billion)<\/strong> of that sum of all global eCommerce transactions. This figure is expected to double to 4.2% by 2024, according to Worldpay<\/a>.<\/strong><\/p>\n\n\n\n

Kaleido Intelligence<\/strong><\/a> research states that according to Businesswire<\/strong><\/a> “Buy Now Pay Later\u201d led by Klarna<\/a><\/strong>, PayPal<\/a><\/strong> & Afterpay<\/a><\/strong>, is expected to double by 2025, reaching $680 Billion.<\/p>\n\n\n\n

According to Statista<\/strong><\/a>, BNPL Global market share is 2,1%. This growth can be seen in the monthly app installs of certain BNPL providers in the US. A figure that is doubled between April and September 2020.<\/p>\n\n\n\n

Benefits of “Buy Now, Pay Later” for businesses and consumers<\/h2>\n\n\n\n

BNPL benefits for consumers:<\/h3>\n\n\n\n
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BNPL benefits for consumers<\/figcaption><\/figure>\n\n\n\n