Growing adoption of buy now, pay later (BNPL) payment options like Afterpay is driven in large part by consumers’ desire for flexibility.
While the specific reasons shoppers cite for switching to BNPL range from credit card avoidance to greater convenience, all Afterpay users get the benefit of greater flexibility in how they shop and spend.
In the U.S. alone, BNPL usage grew more than 200% year-over-year in 2020, and as of early 2021, 40% of U.S. shoppers said they have tried a BNPL service. Globally, BNPL’s value is expected to reach 12% of total eCommerce spending on physical goods alone by 2025, reports Kaleido Intelligence.
Flexibility and control go hand-in-hand. While many consumers find credit card terms and fees confusing--and at worst, misleading--experts say platforms like Afterpay draw users with clear, easy-to-understand terms. Shoppers have greater control over how and when they pay, and don’t face the threat of interest and revolving debt as they would with credit cards. This is especially valued by younger shoppers: 18-24 year olds in the U.S. are 11% more likely to use BNPL than bank loans to acquire items they otherwise could not afford. With no application fees, Afterpay is simply more accessible to more consumers.
BNPL is not just for larger purchases, though. Many consumers use Afterpay for everyday spending as part of a smart budgeting strategy, especially as the economic impacts of the pandemic have made many consumers more aware of their spending habits. Tighter household budgets have made BNPL a smart option for many, as it allows them to get the items they want without worrying about paying the full cost up front, or dealing with debt down the road. Plus, features like smart spending limits, payment reminders, and capped late fees reinforce responsible spending with Afterpay.
Giving your customers the flexibility of BNPL is easy. Any size business--from mom-and-pop boutiques to global retailers--can implement Afterpay online and in-store, in just minutes. When your customers are ready to checkout, they’ll choose Afterpay as their payment method, and make the first of four payments, while the merchant is paid in full. Afterpay handles the rest, with customers making their next three payments to us over six weeks.
By empowering customers to spend on their terms, Afterpay’s 75k+ retail partners have seen increased conversion rates, higher average order values, and more new customers. Interested in learning more about the benefits Afterpay can bring to your business and customers? Reach out to our team today.
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