A growing trend is a buy now pay later platform, a concept that allows consumers to make purchases that they otherwise would not be able to afford in full. In fact, 35% of shoppers prefer installment payments over single payments. In addition to saving customers the hassle of paying for their purchases in full upfront, the BNPL also makes it possible for consumers to finance big-ticket items. The BNPL, such as Splitit, allows users to choose a payment plan that fits their monthly budget. The average order value on Splitit is over $1,000, four times higher than the average order value at other leading providers.
The concept of buy now pay later platforms has become increasingly popular, especially among younger Americans. In fact, platforms like Afterpay allow customers to make purchases on an installment plan for up to six weeks. Many of these platforms come with companion apps or web browser plug-ins that enable shoppers to make payments over time. This convenience makes the buy now pay later model attractive for consumers and merchants alike. Afterpay, for example, enables consumers to pay for big-ticket purchases in four equal installments over a six-week period.
As per market survey by Coherent Market Insights,Buy Now Pay Later Platforms Market to Reach US$ 33,638.3 Million by 2027.
While the number of retailers offering the BNPL is increasing, not all stores accept it. Some companies charge higher late payment fees than others, so it is crucial to compare prices before signing up for a BNPL plan. The downside to buy now pay later is the possibility of incurring debt, as there is a chance that purchases may become more expensive. However, BNPL providers also charge monthly account-keeping and payment processing fees as well as early exit penalty fees.
Many major players in the buy now pay later market have focused on improving their offerings and services. The emergence of payment methods on the internet and the growth of e-commerce, in general, are driving growth of the buy now pay later market. By providing an economic and convenient payment option, the buy now pay later platformmarket is growing steadily.
A BNPL that uses a credit card to offer payment options is an excellent choice for many eCommerce retailers. In addition to offering added flexibility, buy now pay later solutions can improve conversion and encourage brand loyalty. Unlike other payment options, users don’t have to undergo a long application process. As more consumers opt for buy now pay later services, businesses should take note of the potential benefits of such a plan.
As a result of the emergence of this new payment option, many people are making purchases through the internet instead of in-store cashiers. It can improve conversion rates and increase order sizes, leading to repeat purchases. Moreover, the COVID-19 pandemic brought major tailwinds to BNPL, as lockdowns forced many people to seek out online shopping. This made BNPL all the more attractive to consumers. According to a recent survey, 56% of respondents have used a BNPL option, and another 53% plan to try it out in the future.
