According to Finder, buy now and pay later model is popular among younger audiences, with 54% of millennials and 50% of Gen already using it.
The Ascent found that over one-third of US adults had used the buy now, pay later (BNPL) in July 2020. By March 2021, the number had surged to more than half – around a 48% increase in less than a year. BNPL options are commonly used to pay for big-ticket items like electronics, furniture, appliances and houseware.
During the pandemic, clothing has been the most popular type of BNPL purchase. According to McKinsey, offering BNPL services can help improve cart conversion, increase average order value and attract new, younger consumers. Brands like Charlotte Tilbury, Target, Casper and Canyon Bicycles are already using this tactic to boost sales.
Brands can consider highlighting BNPL options on the product page, then elaborate on the payment page and finally add trust badges to compel buyers to use this service. Clearly explain the jargon and simplify the terms and conditions for people to click the option that best fits their needs. Highlight the benefits as well as the interest rates in an easy-to-understand visual representation.
[13 minute read]
