Buy Now Pay Later: Easy Gateway to Convenient Shopping
The burgeoning market dominance of "Buy Now, Pay Later" (BNPL) has led to the emergence of a distinct fintech sector. The BNPL market is currently valued at $100 billion and is expected to grow. According to Worldpay, BNPL represented 2.1%, or over $97 billion, among all worldwide e-commerce operations in 2020. By 2024, this percentage is projected to grow to 4.2%.
The advantages of Buy Now Pay Later are the same for both customers and merchants, despite the appearance that BNPL exclusively helps buyers. What drives the business-to-business sector to adopt BNPL financing? Several businesses have a shortage of cash but require equipment, and companies can obtain everything they need when they require it using BNPL financing.
However, what exactly is BNPL? Let's find out!
What is Buy Now Pay Later?
BNPL service offers benefits from alternatives for postponed payments. It's great for people who need assistance and products but don't possess the required money; with this choice, they can get what they need without paying immediately.
BNPL financing is more prevalent in consumer market segments. Consider these benefits to get a clear understanding of how it can function as a payment plan:
Widespread accessibility for customers
With lenient payment options, consumers can finish checkout despite still waiting to receive their monthly salary. Additionally, customers can still get loans despite having substandard credit, which can increase sales for your company. As a result of its inclusive nature, BNPL improves conversion rates.
Ease the burden on your cash flow
You have more ownership over your money when you use BNPL services. You might decide to pay in progressively smaller payments beginning after the selling date rather than all at once. Since you may utilize equipment to boost cash flow; as a result, it effectively becomes profitable.
Growth in sales
Various payment alternatives from retailers, such as BNPL, stimulate buyers to buy more goods. Consumers typically buy goods mostly when they feel at ease with the checkout process. Customers browse for more than one product, even if it is a tad expensive when they have the option of dividing payment as it suits them.
Facilitates the sale of high-value goods
45% of BNPL clients use the service to buy goods that would ordinarily not fall within their spending limit. Customers choose BNPL transactions as they are feasible and frequently interest-free.
Experience an easy purchasing process
Online access to many BNPL network platforms is accessible. You can download data for corporate reports, examine your transactions, and establish direct debits. It's good to enquire about the merchants' Buy Now Pay Later solutions.
In a Nutshell
When someone requires to make a purchase but doesn't have the money immediately, BNPL is a fantastic choice. Customers are increasingly getting offered the option to pay for items using BNPL services from beyond eCommerce, and these transactions could someday be as mainstream as credit card transactions.