Should Stores Offer More than One Buy Now, Pay Later Provider? The Answer is YES!
It’s no longer enough to offer just credit and debit cards at checkout. Shoppers are demanding more payment options like Apple and Google Pay, but catching them all is buy now, pay later (BNPL).
BNPL offers something drastically different. It lets shoppers pay for purchases in four equal, interest-free payments and that’s why its popularity is accelerating, especially with millennials.
As BNPL gains momentum, accepting more than one provider just like stores already do with credit cards, will help boost your bottom line.
Australia is ahead of the BNPL curve
We can gleam valuable insight from the Aussies, where BNPL is significantly more mature. We found that more than 60% of merchants in Australia accept more than one BNPL service – an increase of 57% over the prior year.
Why are stores offering multiple BNPL options?
Demand for flexible payment options is growing fast and merchants are offering the providers shoppers want. It’s no different from accepting Visa, Mastercard and AMEX.
This push is also because 91% of retailers reported positive changes after adding BNPL from an increase in revenue, online sales, conversion, and new customers, along with access to new customer demographics, increases in average cart value, more repeat purchases, and higher profits.
Offering more BNPL options is a win-win situation
1. Today’s customer wants and expects flexible spending options
- 66% of millennials want BNPL followed by 54% of Gen Xers and 40% of boomers.
- In the U.S., 7 in 10 BNPL users are considering opening another BNPL account in the future.
2. Offering multiple BNPL options equals a better customer experience
- Our research shows customers seek out multiple BNPL providers to take advantage of sign-up incentives, favorable interest rates and repayment schedules as shown below:
3. BNPL promises higher conversion and fewer abandoned carts
- 30% of shoppers who use BNPL say they would’ve abandoned their purchase if they hadn’t had access to this financing option.
- 48% of shoppers say BNPL increases their spending power, enabling them to spend up to 20% more than they could with a credit card alone.
- For 44% of shoppers, whether or not a merchant accepted BNPL largely determined how much they’d spend during the holiday season.
Learn more about BNPL now!