The “buy now pay later” (BNPL) model — also known as the “pay-over-time” model, is seeing consistent growth as consumers seek new means of financing their purchases. According to a report by Insider Intelligence, 44.51% of consumers who have taken advantage of a BNPL service first made that move in 2019 and 20.3% did so in 2020.
BNPL offers a wealth of advantages to retailers, including the ability to increase consumers’ motivation to upgrade their purchases with the option to make a series of smaller, more manageable payments for the items they want rather than pay in a larger lump sum. Giving consumers the option of BNPL financing also allows retailers to appeal to a wider breadth of consumers who may not otherwise shop in their stores, as well as to cultivate strong customer loyalty. All of this adds up to a better bottom line.
Read on to find out more.