Retailers That Multi-app Boost Sales, See Fewer Abandoned Carts and Get Bigger Spenders
Consumers that use Buy Now, Pay Later (BNPL) are the new breed of shoppers. They actively avoid debt, don’t like credit cards, and want more control over how they pay. They’re also younger overall (Gen Z and Millennials) and aren’t scared to spend. In fact, they represent more than 80% of BNPL transactions accounting for almost $25 billion in the US alone.
By 2025, that number is expected to grow to $760 billion globally, making BNPL the fastest growing eCommerce payment method worldwide. These kinds of numbers have caught the attention of smart retailers. They are quickly realizing that by multi-apping (aka accepting multiple BNPL providers), they can cash in big on this growing trend.
Why are more and more retailers multi-apping?
When you look at the top 4 reasons retailers multi-app, the global trend we are witnessing becomes crystal clear.
Why retailers offer multiple BNPL options:
- 55% – Customer demand
- 42% – Increase total sales
- 42% – Customer service
- 39% – Competitors offer it
Also, 61% of consumers said they’d consider signing up for BNPL at stores they already shop. As more retailers realize that customers are driving the demand for BNPL as a form of payment, it only makes sense to give customers what they want – especially when they’re telling you how they want to spend their money!
More carts reach the checkout finish line
By listening to consumers, retailers are increasing sales and reducing abandoned carts. Cart abandonment is a huge problem. 91% of Canadian purchases were abandoned in just a single quarter in 2021 alone. The good news? Analysis from YipitData shows that adding more BNPL options increases conversions and that means more revenue for retailers.
In a previous blog, we showed that 30% of BNPL users said they would’ve abandoned their purchase if they hadn’t had access to this financing option. That’s why Zip merchants enjoy an average 20% boost in conversion and a 60% increase in average order value (AOV) after implementing Zip.
The ROI for BNPL
BNPL is all about putting buying power into the hands of consumers. With 53% of all purchase volume generated by debit/prepaid cards vs. 33% for credit cards in 2021 (February 2022 Nilson Report), BNPL gives this majority access to financing they never had until now – and retailers are seeing higher spending. In our latest multi-app report, data from YipitData showed clear incremental gains when retailers have more BNPLs at checkout. Check out the impact for a global fashion retailer:
AOV impact with multiple BNPL providers:
- No BNPL: $40 to $50
- With one BNPL: $70 to $90
- With multiple BNPL: $75 to $105
- With Zip: $85 to $160
Source: YipitData, February 2022
It’s clear that multi-apping is the way forward for retailers. Customers demand it and spend more when BNPL is available to them at checkout. Retailers are also seeing higher order values and fewer abandoned carts creating a win-win situation for everyone involved.
BNPL and multi-apping are gaining momentum in Canada and Zip can help your brand take full advantage of this emerging global trend. Zip is a leader in BNPL payments and consumer financing solutions (we recently acquired Sezzle in Feb. 2022). With nearly 10 million users and over 82,000 merchants in 14 international markets, let us show you how BNPL can steer your brand towards millions of consumers waiting to be heard.
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Andrew Luu is an international award-winning journalist who spent a decade writing about cars before turning to the world of advertising. His resume includes AutoWeek Magazine where he tested cars and hosted its TV show, along with clients such as Chrysler, Ford and TD Bank.
