Buy Now, Pay Later (BNPL) is like layaway from a long time ago, only better because shoppers can take goods home when shopping, not paying. With no fees or interest for the consumer, it has also been a plus for merchants who can close more carts by offering flexible payment options.
Retailers have realized that consumers are more likely to buy rather than browse and tend to spend more money if there is an BNPL option available, according to research from PYMNTS. While most BNPL transactions happen online, attracting shoppers to in-store availability could start with seamlessly integrating the BNPL option into the point-of-sale (POS) experience.
A recent PYMNTS study conducted in conjunction with Zip showed that shoppers at luxury and specialty stores are curious about BNPL, with 56% of respondents saying they were “very interested” in using installment payments for online shopping.
When it comes to bridge millennials and millennials, 66% of survey respondents said they had a high opinion of luxury and specialty merchants that extend BNPL payments both in-store and online. By promoting BNPL options in a manner tailored to demographic groups, retailers can reap more benefits.
Some shoppers also indicated that they would switch stores for an BNPL option. The survey showed that 46% of department store customers would switch to another retailer if their favorite store did not offer installment payments.
Data shows that retailers offering BNPL can realize new profit opportunities while differentiating themselves from their competitors.
To learn more about the steps merchants can take to increase the use of BNPL options by in-store shoppers, download the report, BNPL and the In-Store Opportunity: Why Merchants Need to Offer Point-of-Sale Payment Flexibility.