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
A Beginner's Guide to Biometric Authentication for Payments
Phone, wallet, keys - the three “essentials” everyone scrambles to find before leaving home. Traditional payment transactions require consumer...Learn More
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
The Generational Shift in Consumer Shopping Behaviors
With every generation, consumer behaviors change. Gen Z (ages 18-24) and Zillennial (25-26) shoppers grew up online. Many don’t remember a tim...Learn More
An Introduction to Payment Terms and Concepts
The payments space has a language all of its own. Who are acquirers? What’s a payment terminal? What about a PayFac? Whether you’re a new busi...Learn More
How NMI is Making 2023 the Best Year Yet for Our Partners
The payments industry has changed dramatically over the past several years. In 2020, consumer expectations shifted, and we saw a sudden rise i...Learn More
What You Need to Know About Buy Now, Pay Later Legislation
What if you could finance and pay for a purchase over time without a credit check or signing up for a personal loan? Buy Now, Pay Later (BNPL)...Learn More
4 Steps to Make Your ISO Business More Profitable in 2023
As headlines warn of a potential recession, consumers are tightening their belts in preparation for a challenging year. While so much negative...Learn More
NMI Achieves Milestone Year in 2022 With Industry Recognition, Acquisitions and New Partnerships
Through acquisitions and continued platform investments, the company will continue to support partners from sign-up to pay-out across the comm...Learn More
The Evolution of Public Parking Payments
Parking payment solutions have evolved significantly since their inception. The first parking meters were installed in Oklahoma City in 1935 (...Learn More
The State of Public Transportation in the United States, the United Kingdom and Europe
'A developed country is not a place where the poor have cars. It's where the rich use public transportation.' - Gustavo Petro Public transpor...Learn More