Younger generations are getting credit cards to get more convenient, stylish, affordable, and budget-friendly choices. Shopping is a way of life. Thus, the number of shoppers grows Buy Now Pay Later . If you’re one of them and you hear about the buy now, pay later policy and you are a consumer, what is your response? It’s true, this dream has turned into reality.
What exactly is “Buy now and pay later”?
By the name, you will be aware of what it means. Buy now and pay later is referred to as BNPL. It’s a brand new type of payment method that permits customers to purchase something and then make payments that are not a burden. This has shaken up the credit card industry recently. Business owners also offer it to holders of credit cards too.
Perhaps you’re trying to find a certain product and decide to pick one or two items. You don’t have cash on hand but would like to purchase these. Therefore, buy now and pay later and you will be able to do this. It is possible to pay for a small amount upfront , and then the rest of the money in instalments. The instalment will require a certain amount of instalments in which they must pay the entire amount either weekly or monthly. It’s a great method that could increase the number of sales on impulse and boost online sales.
Who is Using the Buy Now Pay Later Scheme?
This plan was introduced by the US to appeal to young shoppers. In 2008, the US economic situation was the Great Recession. This led to lots of people losing their jobs. Students are facing educational loans, as are those who are facing default on mortgages as well as credit card bills. This is why they began it.
Since the buy-now-pay-later scheme has been in effect, consumers can benefit from it. You can buy whatever they want , and it functions like a substitute for credit cards. It allows shoppers to manage their cash flows. The most appealing aspect that comes with this Buy today pay later plan is that it is easy to comprehend by anyone who has it , and it’s cost-free.
- 32% of the people of the age group 18-25 segment are taking advantage of this method.
- 40% of those affected by this condition are within the age range between 26 and 34.
- 62% of the population is using it for those aged 35-49.
- 16% of the population is taking advantage of this offer for the age group 51-64.
Through our research, we have discovered that, out of the 10 BNPL users, 7 customers buy more than $75,000 in a year. BNPL assists in gaining long-term customers. In the current Corona epidemic, a lot of people began to utilise this method.
Why do Shoppers Like BNPL?
” Buy now pay later” is highly advantageous for buyers due to flexibility, convenience and openness. These include:
- You can purchase the product that they are unable to create in a short time.
- They can be used on mobile phones, meaning that they don’t have to carry around a credit card.
- There is no need to pay interest on it.
- User friendly.
- Permit a person to spend more than what they’re entitled to.
The number of people who download the buy now , pay later app has increased by 115 percent in September 2020 as compared to September.
What are the reasons why an individual from Marchant likes BNPL?
If you’re an owner of a business, then it is essential to add the buy now pay later program for Your E-Commerce Site. There is an increasing amount of competition between marketers. Therefore, it is essential to take care of the Comfort of your clients. Today 60% of sellers like this deal.
Purchase now and pay later deals could increase your average order value or AOV as high as 85 percent.
Buy Now, Pay Later can Increase Potential Sales.
- This promotion could entice new customers.
- Buy Now, Pay Later Could Build Trust
- You May Decrease Cart Abandonment With Buy Now, Pay Later.
- Buy Now, Pay Later May Give Consumers a Better Credit Solution.
- Through study, we find that over 20 percent of buyers repeat the process after the first time.
What is the reason for BNPL increasing?
Since this service offers benefits for both the seller and buyer which is why it’s the fastest-growing payment method for e-commerce. Based on a study that we have uncovered that among the US populace BNPL was responsible for spending $24 in the year 2020. We are hoping that by 2025, the amount will rise to $650 billion or $1 trillion.
The Buy Now Pay Later has increased during these times of pandemic. Due to this pandemic there are a lot of people who are losing their job. They need flexibility on the market. Therefore, 60% of online companies implemented this payment method.