Nowadays, there is a wide array of payment methods that consumers can choose from whenever they shop online. These payment methods share a common commitment to providing customers with a seamless and convenient checkout experience – thus they continue to improve their flexibility and user-friendliness. Recently, Buy-Now-Pay-Later (BNPL) is seeing a rise in popularity amongst customers and entrepreneurs alike – with growth amounting to 85% in the past year alone. BNPL is about as straightforward as its name – it allows customers to make a purchase and pay through installments over time, without having to wait until they complete their payment to receive their products.
Sounds familiar? This payment method has been around for a while, albeit in a different way. Credit cardholders are more or less acquainted with the principles supporting BNPL – so what makes it any different?
For starters, BNPL only requires you to provide basic information such as your name, contact, and billing information which consumers prefer over the cumbersome process that usually comes with using credit cards. This makes BNPL popular among Millennials and Gen Z shoppers who account for 75% of BNPL users globally.
BNPL also serves as an affordable alternative to credit cards and other traditional payment methods as it has no fees or interest charges; provided customers meet the payment deadlines and policies. 39.3% of shoppers claim they prefer BNPL services to credit card payments because they can avoid credit card interest.
E-Commerce business owners are constantly seeking and trying out new ways to improve their payment processes to help them gain and retain customers. And BNPL for E-Commerce is quickly shaking things up for digital brands when it comes to sales. Here are the reasons why BNPL is one of the best ways to increase E-Commerce sales: