Buy Now Pay Later (BNPL) is slated to be one of the fastest-growing payment trends in 2023 - especially among younger consumers. In 2021, 45.9% of Digital Commerce 360's Top 1,000 online retailers offered BNPL, up from 28.2% in 2020.
BNPL is a payment option that allows customers to pay over time, usually in multiple installments. Unlike traditional credit, BNPL doesn't require a credit check and can be used on and offline with a digital wallet. Because of its flexible structure, BNPL allows users to purchase things they might not otherwise be able to afford.
With potentially tough economic times on the horizon, merchants who offer BNPL have the opportunity to differentiate themselves while providing financial relief to buyers.
Several industries have already adopted BNPL payment structures, including:
McKinsey found that Buy Now Pay Later is especially popular in sectors with high margins and customer acquisition costs since delayed payments make it easier for consumers to justify their spending. "Merchants are seeing value in these solutions, as most enhance cart conversion, increase average order value, and attract new, younger customers to the merchants' platforms."
For instance, in the rental market, many property managers have partnered with BNPL providers such as Flex and Circa to allow renters to pay on their own schedule rather than on the first of the month. With this, fewer tenants default on their rent, and property managers don't have to spend as much time chasing down missed payments.
Introducing BNPL into your merchant payment services enables you to meet customer expectations, improve convenience and streamline the checkout process. You will also win more sales from customers who might not have afforded their purchase without the flexibility of BNPL.
To demystify the Buy Now Pay Later movement, our CMO Peter Galvin spoke with Gretchen Salois from Digital Commerce 360 about the trend and what it means for the payments industry.
To learn more, read the full article here.
Fill out the form below and we will get in touch with you shortly
Finaro, Mastercard, Northmill and NMI Partner To Pioneer First Cloud Commerce Deployment in Europe
Finaro, the global cross-border payment provider and fully licensed bank, has today announced its European Cloud Commerce deployment with paym...Learn More
Old Habits Die Hard: What’s Keeping Consumers Away From Biometric Payments?
Biometric payments are changing the way people pay, both in-store and online. This technology uses biological identifiers, such as a person's ...Learn More
Why 46% of Top 1,000 Retailers Offer Buy Now Pay Later
Buy Now Pay Later (BNPL) is slated to be one of the fastest-growing payment trends in 2023 - especially among younger consumers. In 2021, 45.9...Learn More
Banks could lose ground to Fintechs by not investing in innovative payment technologies
The fintech space is growing - and there’s no stopping it. Studies estimate that the global fintech market will reach $814 billion by 2030, re...Learn More
NMI arms itself for a tougher economy with acquisitions, partnerships
Fears of a recession are looming. A recent survey by Provident Bank found that 67% of small to medium-sized businesses believe a recession may...Learn More
Integrated payments are here - are ISOs ready?
ISOs are feeling the pressure from software companies stepping into the payments arena. Our CEO, Vijay Sondhi, discusses the opportunities ISO...Learn More
Contactless payments on kiosks in open spaces
Our Head Of Product Marketing, Peter Alcock, discusses how the expectations around contactless payments have evolved since the onset of the pa...Learn More
Here’s what payment innovations will be spurred and adopted amid market uncertainty
The onset of the pandemic accelerated the adoption of payment innovations and quickly adapted how we pay. Our CEO, Vijay Sondhi, discusses how...Learn More
NMI Acquires Agreement Express’s Payments Solutions, Providing More Value for Partners
SCHAUMBURG, IL – DECEMBER 6, 2022 – NMI, a leading full commerce enablement technology company, has acquired the Agreement Express payments so...Learn More
NMI Partners With Kount, an Equifax Company, to Enhance Advanced Fraud Protection
SCHAUMBURG, IL – NOVEMBER 17, 2022 – NMI, a leading full commerce-enablement technology company, today announced a product collaboration with ...Learn More