Buy now and pay later is a concept that shoppers would naturally love stated Bahaa Abdul Hussein. Buying the products of your choice and then paying later in installments without interest is a shopper’s delight. This is what BNPL offers. It is a revolution in the world of credit that is customer-friendly in nature. BNPL is not only beneficial for customers, but also for retailers.

What is BNPL, and how does it work?

BNPL is a shopping feature that allows a shopper to buy the product of their choice immediately and then pay for it later. They can pay in later in full or in installments without interest. The best part of BNPL is that the retailers get paid immediately. The service provider who offers BNPL payment would ensure the retailer gets the full payment upfront minus their fee.

Let’s look at how BNPL works:

  1. BNPL is mainly meant for online shoppers. At the time of completion of shopping, the shopper gets an option to buy now and pay later.
  2. Once they select this option, shoppers are redirected to the app/site of the BNPL service provider.
  3. The shopper then chooses their desired option of repayment. They can repay in full after the credit period or in installments. Shoppers are presented with different instalment plans, and they can choose one of the plans.
  4. Once the purchase process is complete, the product is delivered to the shopper.
  5. At the same time, the retailer gets their full payment after deduction of the service provider fee (usually 2 to 8%).

Benefits of BNPL

  • Allowing shoppers to pay later encourages them to make a purchase immediately instead of deferring it. It helps retailers increase their sales.
  • It is a customer-friendly measure and allows shoppers the option to pay in installments without paying hefty interest.
  • It is a transparent system of payment and is convenient to use.
  • Retailers can increase conversion rates, and push old stock by offering BNPL.
  • Overall customer experience is enhanced, which leads to customer loyalty and greater sales.
  • The average order value of retailers is increased thanks to BNPL.

Conclusion

BNPL is a customer-friendly measure for shoppers that also benefits retailers. The concept has gained in popularity. The global market for BNPL was 6.3 billion dollars and is expected to grow by 26% in the coming years with more retailers adopting it. It is no wonder that BNPL has become the latest credit revolution in today’s world. Thank you for your interest in Bahaa Abdul Hussein blogs. For more information, please visit www.bahaaabdulhussein.com.