The Power of BNPL: Why Merchants Should Embrace Buy Now, Pay Later

In today’s world, convenience and flexibility reign supreme in the eyes of consumers. The buy now, pay later (BNPL) payment method has emerged as a game-changer, resonating with shoppers who appreciate the ability to spread their retail expenses over multiple installments. For retailers, BNPL offers a lifeline to combat cart abandonment and sustain sales. PYMNTS Intelligence, in its report titled «The Credit Accessibility Series: BNPL’s Wide-Ranging Impact on Consumers and Merchants,» conducted a survey of over 3,100 consumers to uncover the growing popularity of BNPL and its profound influence on credit accessibility.

The study, a collaborative effort between PYMNTS and Sezzle, uncovered a striking fact: BNPL has become a coveted payment method, with nearly half of BNPL users expressing their willingness to postpone or cancel a purchase if the retailer or merchant fails to offer it.

This sentiment transcends generational boundaries, as 28% of both millennials and Gen Z consumers echoed the same sentiment, underscoring the importance of BNPL for younger demographics. Surprisingly, 26% of baby boomers and seniors also affirmed that they would abandon their purchase if BNPL was absent.

The impact of BNPL extends beyond the mere completion of transactions; it has a profound influence on product choices. The PYMNTS Intelligence study found that when BNPL is absent at the checkout, 28% of bridge millennials opt for more affordable alternatives. This signifies that offering BNPL as a payment option can substantially boost the likelihood of securing sales for higher-value products. When consumers have the freedom to leverage BNPL, they are less inclined to compromise on their desired purchases.

Moreover, the absence of BNPL can have ripple effects on consumer behavior that extend beyond individual transactions. Some consumers may restrict themselves to a single purchase or postpone other payments when BNPL is not available.

Interestingly, this trend is most pronounced among bridge millennials, who are twice as likely as the average consumer to take such actions. This underscores the profound impact of offering BNPL as a payment option on shaping consumers’ overall spending habits.

The allure of BNPL is undeniable. It has emerged as a crucial tool for retailers to not only secure immediate sales but also to influence long-term consumer behavior. The message is clear: merchants should embrace BNPL to cater to the growing demand for flexible payment solutions in the modern marketplace. Failure to do so could result in missed opportunities and the loss of discerning shoppers who prioritize convenience and choice above all else.