Customers have always loved the concept of being able to buy something now but pay for it later. But the idea is more popular now than ever before.
In a challenging world economy, there’s a need for consumers to stretch their finances further, and what better way do they have than buy now, pay later online shopping? The option makes purchases much more affordable and accessible to customers.
Similarly, businesses of all sizes- small, medium, and large- offer BNPL options at checkout to meet the high demand for these services. While at it, they also intend to benefit from the opportunity.
If you are reading this article, you are probably considering joining the movement, but you are not sure whether it’s the right thing.
Below are five facts about the buy now pay later industry you need to know to steer you in the right direction.
Buy Now Pay Later is a Successful Industry
The buy now, pay later online shopping business is booming with a record growth of over 200% amid the pandemic. According to the trends, it may continue many years into the future, making BNPL an indispensable mode of payment in the world.
India alone may record a CAGR of 24.2% during the forecast period 2021-2028. The BNPL Gross Merchandise Value will hit $52827.2M by 2028 from $6990.5M in 2020.
Going by these statistics, BNPL is to see brighter days ahead. As a result, providing these debit card EMI solutions in your business is a smart move to secure success in the future.
Buy Now Pay Later Services are Attractive to Millennials and Gen Z
Another crucial fact you need to know is that millennials and Gen Z love BNPL. According to a recent report released by PAYTM, 87% of consumers aged between 22 and 44 years showed interest in BNPL.
There are several reasons for this:
- The majority of young people don’t own credit cards
- Credit card loans attract high interest rates which are not affordable
- BNPL is much faster and more flexible
- BNPL provides more financial control and better planning
In short, BNPL is the preferred payment option for the young generation because it is in tune with how they want to buy. Hence, it is advisable to tap into BNPL to target the younger audience and create more customer loyalty as a business person.
Buy Now, Pay Later is Perfect for Big Purchases
The only reason why customers seek financing options is to buy goods and services they cannot otherwise afford.
By offering BNPL EMI solutions, your business can benefit from selling more big-ticket items, which will translate to a higher ROI (Return on Investment).
Buy Now Pay Later Encourages Repeat Purchases
Every business needs its customers to come back and buy again from them. That guarantees a more consistent revenue and is also a way to confirm that customers trust the products and services you offer. BNPL EMI solutions are perfect for catering to that.
According to the purchasing trends, 65% of BNPL users are more likely to make at least two purchases in 6 months. Therefore, by implementing BNPL options, your business can benefit from such customers through increased sales, revenues, and profits.
Plenty of Benefits to Merchants Offering Buy Now Pay Later Options
Last but not least, merchants offering BNPL options stand to gain so much more than those who don’t. In fact, a significant number of them can confirm that part of their business success came by enabling buy now pay later online shopping services in their organizations.
Below are some of the benefits you can exploit as a merchant by implementing BNPL options in your business.
- Improved Customer Experience; BNPL allows you to include reward and loyalty programs and other incentives to motivate customers to buy more.
- Increased Sales; BNPL stimulates big-ticket purchases and repeat customers, increasing sales as a result.
- BNPL boosts customer loyalty
- BNPL increases Customer Retention
Conclusion
Is implementing BNPL options a good idea for your business? Yes indeed! These 5- facts about the industry can tell you why that is.
It’s one of the best decisions you can make right now to become a successful businessperson, not just today but also in the future.