Whether you are new to online shopping or a regular buyer, you must have stumbled upon the term – Buy Now, Pay Later. BNPL is also known as POS financing or Point-of-Sale lending. It is not a new trend and has been around for many years. But it has recently gained huge popularity and fascinated consumers around the world, especially millennials.
If you haven’t tried this method yet and kept on thinking about whether it is worth trying or not, keep scrolling the page to know how this booming industry is helping consumers spend on their favorite items.
Here’s some interesting data from The Pearl Source, a national pearl retailer offering BNPL options.
1. It is a flexible financing option.
A payment alternative to the credit or debit card, BNPL is a flexible option that allows customers to buy their favorite item from the store without paying the entire cost at the time of purchase.
Consumers always value payment methods that are flexible so that they can use them according to their convenience. The value of flexibility will get multiplied by a thousand times when the shopping is done online. According to a survey, 78% of the users prefer buying with BNPL to enjoy flexible return policies if they don’t like the item. Its flexibility allows customers to manage their finances and add their favorite items to their collection.
A PYMNTS Survey of Sezzle users reveals that nearly 40% of the customers acknowledged that BNPL has helped them budget their monthly expenses smoothly.
2. It is an interest-free payment option.
Buy Now, Pay Later is an interest-free payment system. This is precisely why millennials and other next-gen consumers count on this option, primarily when investing in something big.
According to Klarna, this payment method saved £76m in the interest charges last year.
3. It provides extra reassurance when consumers try new retailers online.
BNPL has a reputation in the market for being a safe and secure payment option. If you have ever indulged in online shopping, you must admit how difficult it is to try out products from a new retailer. Here, BNPL plays its part and helps people spend.
A trustworthy payment provider can make a huge difference, especially when investing in a new retailer. According to the survey conducted by Klarna, around 78% of UK consumers agree that the security offered by BNPL helped them buy from unknown sellers without thinking too much.
4. No upfront payment.
With Buy Now Pay Later system, customers can either make a purchase and pay later or make a small payment and break the rest into EMIs. In both cases, they will not have to pay the whole price of the product upfront. This simply offers them instant pleasure and lets them take their favorite item without cutting down their monthly expenses.
5. It is convenient than any other payment option
Using the BNPL method is quite simple and straightforward. It does not include any long-term formalities or documentations. The customers will have to carry out a few simple steps and the credit amount will be instantly made available for purchase.