Buy Now Pay Later, commonly known as BNPL, has gained a lot of traction in the past few years. Here are ten amazing facts about the BNPL industry that might surprise you, courtesy of recent research from The Pearl Source, a national jewelry retailer specializing in pearls offering BNPL options.
1. BNPL system enhances customer experience and facilitates economic activity
A recent survey of 1051 US merchants claims that the BNPL system enhances the customer experience and adds fuel to their economic activity. It has increased the sale conversion rate and benefits all merchants, irrespective of size.
2. It accounted for 3.6% of all online retail sales in the UK in 2020
The Buy Now Pay Later sector is one of the modern and flexible payment method options prevailing in e-commerce. This suits everyone’s needs and gives advantages to both merchants and a buyer.
3. This system helps people in managing their finances
Undeniably, BNPL is growing at a fast pace and embraced by a majority of consumers worldwide. Those who have used this service believe that its flexibility helps them manage their finances while adding their favorite item to their collection.
4. Around 10.4 million customers used BNPL last year.
According to Klarna, the BNPL system was used by around a fifth of the UK’s population in the previous year. Also, this service has been used by 17 million people at a certain point in their lives.
5. It is a low-risk and low-cost option.
A broad range of consumers worldwide prefer using the BNPL system and classify it to be a low-risk and low-cost payment option. According to a survey of 2020 BNPL users, 75% of the customers using this service had funds in their accounts to cover the item’s total purchase price.
6. BNPL saved consumers a considerable amount of interest fee last year
Experts believe that if all BNPL purchases were made through credit or debit cards, consumers might have to pay £76m in interest charges. The BNPL indeed proves to be a cost-effective option for the customers.
7. It is flexible, easy, and safe.
Many consumer surveys have been done so far and have found that consumers love BNPL over other payment options. It is flexible, easy to use, and of course, the safest among all.
8. It is more prevalent among younger shoppers.
No credit or debit card? Fret not, as BNPL is here to serve you. This payment form is taking more roots among millennials than any other generation.
9. BNPL has grown 85% in the past 15 months
According to the PYMNTS’ March 2020 Paypal Credit Economy Survey, BNPL’s user base has grown to 85% in the last 15 months, with 15.4 million consumers acknowledging that they had used this payment method.
10. Electronic and tech products are more popular with BNPL
Since electronic and tech items are a bit more expensive than others, consumers prefer using the BNPL payment system to buy such things.
