Transform your core retail KPIs with BNPL

March 17, 2025

Retailers are always seeking ways to bring in new customers and stand out from the competition. While product updates and promotions are standard retail tactics, many retailers overlook a critical growth lever: financially underserved shoppers. Over 100 million Americans are financially underserved¹, yet they represent a significant spending pool who may not have the cash on hand to make a desired purchase.

By reimagining the Payment Experience (PX) with buy now, pay later (BNPL), retailers can tap into this demand and stand out amongst the competition while increasing top- and bottom-line growth. Empowering financially underserved shoppers unlocks new customers with greater purchasing power, reduces abandoned carts, and increases lifetime value. Zip’s ACE framework is designed to help merchants optimize the key performance indicators that matter most by auditing three key aspects: Access, Connection, and Excellence.

Access: Breaking down barriers to growth

For retailers, the gap between potential and performance comes down to access—access to new customers, larger basket sizes, and repeat business. Zip merchants that invite these consumers in and offer flexible payment solutions see a 20% increase in conversions and a 46% average increase in AOV². Access isn’t just about inclusion—it’s a growth strategy delivering sustained impact.

Merchants that integrate Zip’s PX see their increased access reflected across core KPIs:

New Customer Acquisition	Attracting first-time buyers is essential for growth in a crowded market. Flexible payments help retailers reach the millions of underserved Americans who don’t have access to traditional credit. With Zip, one leading electronics merchant saw a 300% increase in transacting customers, compared to the prior four-week average³.
Conversion Rate	Flexible payments reduce checkout friction and abandoned carts, while converting browsers into buyers. A sporting goods merchant saw a 10% increase in conversation rate after adding Zip’s Payment Widget, translating to $75,000 in incremental total transaction volume per month.⁴
Average Order Value (AOV)	Without high interest rates discouraging larger purchases, customers feel empowered and protected to spend more with BNPL. On average, Zip merchants experience an average 46% increase in AOV². A leading ticketing provider achieved a 51% AOV increase year-over-year, through a strategic PX optimization⁵.
Revenue Growth	Retailers leveraging flexible payments unlock new revenue streams, reducing reliance on high-cost discounting strategies. These untapped opportunities can provide a critical revenue boost that sets merchants apart from the competition. The leading electronics merchant also saw 4x total transaction volume (TTV) growth through co-marketing efforts with Zip.⁶

Connection: From first-time buyers to loyal customers

Customer retention isn’t just cost-effective—it’s a profit multiplier. Acquiring a new customer costs 5x more than retaining an existing one, and repeat shoppers drive higher lifetime value.⁷ Sustainable growth depends on retailers turning first-time buyers into loyal customers who return month after month and become organic brand advocates.

Connection goes beyond today’s transactions to build long-term relationships that fuel revenue growth. Merchants leveraging Zip see higher repeat purchase rates and Net Promoter Scores (NPS), proving that flexible payment options build trust, increase engagement, and drive brand loyalty.

Here’s how Zip helps merchants forge a deeper connection with their shoppers:

Customer Retention	Shoppers want payment experiences that are transparent, fair, and flexible. Zip’s PX delivers with flexible installment payments, real-time approvals, and no hidden fees. Merchants leveraging Zip’s PX see improved and significant repeat purchase rates. In the last 18 months Zip has seen a 43.6% increase in transactions per active customer to 9.4x⁸
Customer Lifetime Value (CLV)	Retention rates and CLV go hand-in-hand, driving more value per shopper and reducing the reliance on expensive acquisition efforts. When CLVs rise, loyalty and repeat spending rise, too.
Net Promoter Score (NPS) & Customer Satisfaction Score (CSAT)	For financially underserved consumers, BNPL fosters loyalty and trust. By offering access to installment payments we have seen customer NPS and CSAT increase, with our merchant base having an average customer NPS of +62⁹.
Churn Rate	Reduce customer churn by ensuring customers have reliable alternatives at checkout. Retailers can stop sales from falling through the cracks with strategic BNPL placements throughout the buyer journey, letting customers check their eligibility before they check out or select Zip as an alternative if another payment method doesn’t go through.

Excellence: Optimizing operations for maximum impact

Excellence is about maximizing impact while maintaining efficiency. BNPL transforms payment processing from a backend function into a strategic advantage. Seamless integrations and rapid activations enable businesses to scale without friction, optimizing costs while increasing revenue and customer loyalty. By turning flexible payments into a growth lever, merchants improve both their top- and bottom-lines.

Merchants know they’ve achieved operational excellence with Zip through KPIs like:

Cash Flow	Positive cash flows mean more capital for the business to reinvest and build resilience against future challenges. With BNPL merchants get paid upfront while customers can pay over time, increasing cash flow on both sides of the transaction.
Cost of Acquisition (CAC)	High CAC erodes profitability. Zip’s consumer insights enable merchants to fine-tune acquisition strategies, reducing marketing costs while increasing conversion rates.
System Uptime and Reliability	A next-generation payment experience only works if it’s always available. Zip maintains 99.9% system uptime¹⁰, even during peak shopping periods like Black Friday and Cyber Monday.
Return on Investment (ROI)	ROI validates the impact of new strategies and technologies, showing what’s working and where adjustment may be needed.

The bottom line

Retailers have different growth priorities—some focus on revenue expansion while others prioritize cost optimization. Whatever your goal, Zip’s access and next-generation PX can transform your core KPIs, delivering measurable top- and bottom-line growth.

Book a tailored demo today to receive a detailed ROI analysis based on your business nuances.

_{¹119 million Americans: “}_{National Population by Characteristics:}_{” 2020-2024, U.S. Census Bureau, November 2024. Numbers are reflective of unlocked customer segments of underserved Americans and are not reflective of Zip's customer base.}

_{²+20% lift in conversion rates: Zip internal data as of February 2025. 46% increase in AOV: Zip internal data as of May 2024. Results are not representative, or guaranteed and may vary based on industry, company size and other criteria.}

_{³300% increase in transacting customers: Zip internal data as of February 2024}

_{⁴10% increase in conversion rate, $75K+ incremental revenue: Zip internal data as of November 2023}

_{⁵51% AOV increase: Zip internal data as of December 2024}

_{⁶4x total transaction volume: Zip internal data as of February 2024}

_{⁷5x more expensive to acquire new customers: "}_{Customer Retention Cost: How Much Should You Be Spending?}_{", LoyaltyLion Blog, March 2025}

_{⁸43.6% increase in transactions per active customer to 9.4x:}_{Zip FY25 Half Year Results, February 25, 2025}

_{⁹+62 NPS score: “}_{Unlock growth with insights from Zip's loyal shoppers}_{", Zip, February 2025. Results are not representative, or guaranteed and may vary based on industry, company size and other criteria.}

_{¹⁰ 99.9% system uptime: Zip internal data as of November 2024}