Is “Buy Now Pay Later” a New Retail Trend?

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Is “Buy Now Pay Later” a New Retail Trend?

The answer is NO. This payment method already exists even before, it is a scheme that is present in credit card payment and it is often confused with “layaways,” when actually it is just an upgraded version.

The Buy Now Pay Later or BNPL method enables consumers to buy products and pay for them through installment plans. Compared to layaways, BNPL lets consumers receive the product without having to pay full payment. Both payment methods became trends at the height of recessions, wherein consumers were struggling to pay full prices.

BNPL was already present before, it just made a comeback in today’s digital age. And like a blast from the past, it is because this era’s top consumers are also in the middle of a financial crisis.

Millennials and Gen Z make up the most of world’s consumers. Currently, they are the generations that are in managerial positions or some are beginning to enter the workforce which makes them highly capable of making purchase decisions.

With economies that always on the edge and some wage rates could not fully cover living expenses, the biggest shopping generations are bound for financial struggle. But with the Buy Now Pay Later method enables to make purchases that are not heavy on their pockets.

To translate these in numbers,  48% of digital consumers view that different options for payment methods affect their buying decision. In the same report, 1/3 of them have expressed that they are likely to buy a more expensive item if it can be paid in installments, while 31% said that they would not even purchase if it didn’t offer the BNPL option.

BNPL extends the reach of business owners, as consumers have now more options in their payment methods. Moreover, in online shopping, studies suggest that carts are abandoned because, at the check-out tab, consumers see it as too expensive. But when installment methods are placed, consumers can dissect their payments and can now be able to afford their entire cart.

This payment solution caters to the needs of the consumer. It revolutionizes the e-commerce industry, making it more consumer and financially-friendly. And as a business, we only want what’s best for us and our consumers.

We can only say that we have fully succeeded in our marketing or advertising campaigns if we can turn website visits into sales, and a sale is made when a consumer presses that “PAY” tab.

About the author : Denis Gagnon