Buy Now Pay Later is the new financial buzzword in the retail industry and is completely living up to the hype. This approach is a more responsible way to pay for the large-ticket item. It is particularly pleasing to the Millennials and Gen-Z looking for the payment option that lets them know what they will pay and how it can fit their budget.
The introduction of BNPL has wholly transformed the payment landscape and has raised consumer expectations. A majority of millennials have dumped their credit cards and are turning towards this transparent payment platform.
To find out why, we spoke with The Pearl Source, a high-end pearl retailer in the U.S. that specializes in pearls and pearl jewelry. And yes, they offer BNPL options.
- It offers greater spending power.
Around 87% of the modern consumers aged between 18 and 44 years would prefer to make payment in installments, according to PYMNTS. BNPL platforms like Afterpay, Klarna, Sezzle, etc., expand the buyers’ spending power by letting them purchasing whatever they want without emptying their savings. It enables them to buy the big-ticket items with the ability to pay them off over time through low, fixed monthly installments without paying any interest charges. Payment made through the BNPL platforms results in greater customer satisfaction.
- It is an omnichannel solution.
The omnichannel strategy has been around us for a while, but retailers generally overlooked it or treated it as something nice to have. However, the pandemic has changed everything, and most merchants are now rushing towards this omnichannel strategy. BNPL is an omnichannel solution which means that it is applicable for mobile, laptop, or at-store. That allows customers to select the monthly payment plan at POS, whether brick and mortar store, resulting in a more convenient and satisfying shopping experience.
- Greater Control and Transparency.
The flexible payment approach of BNPL offers a virtual line of credit that can be used many times for a new purchase and can be initiated without causing delay to the online shopping journey. It is the best alternative to the typical credit or debit card system and offers more control and transparency to buyers. It gives consumers clear terms and conditions so that they can know what they are going to pay. Moreover, it is 100% interest-free and lets consumers buy whatever they want without any additional charges.
- Simplicity and sophistication.
Modern buyers usually look for a payment method that is simple yet sophisticated at the same time. BNPL offers quick approvals and facilitates a frictionless payment process. With no prior credit checks it is a godsend for buyers. Moreover, it can simply be integrated into the payment system at the checkout and requires no bank line-ups or approval. It results in a seamless payment process from end to end and delivers a high level of customer satisfaction.
- A Trustworthy Approach.
The Buy Now Pay Later is one of the safest payment alternatives. The BNPL providers like Klarna, Zip, etc., are all subject to the Privacy Act 1988 and Australian Privacy Principles to ensure that your data is in the correct hands. Moreover, it also bridges the gap between the consumer and a new retailer for reliable purchase.
Featured Image Credit: PYMNTS