Buying on installment was so common when it came to physical shopping. However, in the world of ecommerce, it was something that store owners never thought to adapt. But the twist comes when technological advancement hits the dramatic transformation in online payment methods.
The “buy now, pay later“ trend has taken the ecommerce world by storm and let customers manage their finances more conveniently without breaking the bank to shop.
BPNL emerged as a game changer yet powerful, allowing shoppers to make purchases promptly and split payments into interest-free installments over time, often with minimal or credit checks. This new payment method is gaining popularity among people; currently, there are 360 million BNPL users around the globe.
Why Consumers and Retailers are Adopting BNPL?
Whenever there is something that brings benefits along with comfort, people try to pick, no matter if they are a customer or a merchant. This “buy now pays later” also has much to offer both parties. Here is a little dig to know the most prominent ones:
- Financial Flexibility: This lets the customer purchase without paying the entire amount upfront. Instead, set interest-free payments to manage more efficiently.
- Transparency: This payment method typically presents a transparent fee structure, ensuring consumers know the exact cost.
- Abandoned Cart Prevention: It’s an effective strategy for online retailers to minimize carts left, as when customers are allowed to pay in installments, the chances of completing the purchases increase.
- Ease-of-Use: The user-friendliness of this approach makes it popular among both parties. As the payment plan approval involves no to minimal credit checks, making it accessible to a broader range of audience.
Ultimately, the buy now pay later trend has undoubtedly disrupted traditional partial payment methods, offering both parties (customer & business) myriad benefits. With the expansion of BNPL providers and the growing acceptance of this payment method, it is clear that the future of payment is here. However, businesses must remain careful, ensuring responsible lending practices and educating consumers about emerging trends.
Staying updated with the latest payment trends is necessary when the global economy is evolving. So, embrace the latest statistics and facts of BNPL highlighted in this blog and stay competitive to meet customers’ evolving needs.