Afterpay’s data indicate that retailers that offered “buy now pay later” saw an 8 to 18% decrease in product returns.
The rapid growth of ecommerce amid COVID-19 has resulted in people adopting a buy now pay later method to pay for groceries online. The model provided Gen Z flexibility on payments in the pandemic, as 13% of 18- to 34-year-olds leveraged Buy Now Pay Later in 2020, as per eMarketer.
The Buy Now Pay Later model drove the average value of consumers order, as brands like Affirm saw an 87% increase in average order value. Retailers that used Afterpay’s service reported a 50 to 200% increase in units per transaction.
However, with the market becoming saturated and increasing competition, retailers should provide their own Buy Now Pay Later services to stay ahead. According to a NerdWallet study, Americans had $416.13 billion in credit card debt in 2020.
[3 minute read]