How Buy Now, Pay Later Is Changing Online Shopping?
Buy Now, Pay Later (BNPL) is a point-of-sale financing option that has risen in popularity in recent years, especially among younger generations. In the early 2010s, best buy now pay later cards arose to solve the problems associated with financing, particularly, complexity and credit cards with high fees and APRs.
According to a survey conducted by Insider Intelligence, these frequently expensive costs have caused consumers to seek alternative payment options, resulting in the success of BNPL.
BNPL solutions were create as an alternative to credit cards and other types of financing, allowing customers to acquire a product and pay for it over time in a predetermined number of installments. Customers are frequently provided these options with low to no interest rates and no hidden expenses.
Customer experience changes:
The ‘Buy Now, Pay Later’ approach, formerly known as installment plans/payment plans, has an impact on a customer’s product selection. Customers can pay and stay involved with a brand using this technique. Simple financing alternatives like BNPL build confidence between retailers and customers, which leads to increased sales.
Solution that is more adaptable:
‘Buy Now, Pay Later’ is a more flexible option than credit cards. You must meet the eligibility criteria and provide the proper documentation when applying for a credit card with any lender. In the case of the ‘Buy Now, Pay Later’ approach, however, you can easily take advantage of this option.
New products and purchasing options are being developed.
The road to multichannel commerce success is not easy, but there are always new innovative approaches to assist you in catering to clients in a way that benefits everyone. BNPL is unquestionably a viable option. It won’t be difficult to connect a BNPL service if you’ve designed your ecommerce tech stack to include modern payment processing software that permits digital payments.
Demographically based purchasing power
Millennials and Generation Z account for a significant part of BNPL Interest-Free customers. Because they are tech-savvy, they appreciate the ease of use of this payment method, which is frequently powered by technology. This mode is also growing more popular in Tier II and Tier III cities. It is also growing in rural areas, due to its accessibility.
Furthermore, because the majority of them are just starting out in their jobs, this payment choice allows them to expand their buying power without getting into debt.
Purchasing Power Increased
Customers can spend even more money with BNPL Interest-Free because of its accessibility, especially during festival seasons. According to one research, 48% of customers believe BNPL will enable them to buy up to 20% more than they would with credit cards.
It can also be utilized to make impulsive or last-minute purchases. This payment system also makes it simple for customers to obtain high-value equipment and devices.
The Bottom Line
The New Buy-Now-Pay-Later Business Model To increase sales on their platforms, many e-commerce companies have begun to use ‘Buy-now-pay-later’ methods. For example, Amazon just launched ‘Amazon Pay Later,’ a new credit programme in India. That allows Amazon shoppers to receive an instant credit that can be used to buy things and pay bills. While credit cards were the first to offer pay-later options online, they are still not extensively used. Because most Indian consumers do not use credit cards for everyday transactions. And only use them for emergencies or large expenditures. Check CIBIL score in India to avail the best BNPL cards.
There are several reasons why BNPL is gaining popularity among consumers, but one of the most important is its flexibility. Customers generally have the option of paying in installments and determining how long they have to pay their amount. Another reason it’s popular is that it lets you buy more expensive items, and younger BNPL users say they prefer it over credit cards. In fact, according to a poll of over 1,800 people, the top reasons users use BNPL are to avoid using credit cards and to buy high-value items.