Buy now, pay later (BNPL) has quickly grown in popularity among consumers. PYMNTS research found that in the past year, 50 million consumers across the United States have leveraged this payment option that splits purchases at the point of payment into several smaller installments. Additional PYMNTS research indicated that nearly 60% of consumers are aware of this payment option, even if they have not personally leveraged it, showing strong potential for BNPL growth.
Customers complete more sales and have higher ticket sizes when using BNPL. Experts estimate that BNPL options increase the likelihood of a sale by 20% to 30% and boost the average ticket size up to 50%. Both estimates mean massive revenue increases for the merchants offering these options.
The “Buy Now, Pay Later Tracker®” examines how consumers leverage BNPL to pay for goods and services and how this benefits merchants.
Around the Buy Now, Pay Later Space
BNPL services offer a variety of benefits for the merchants that deploy them, particularly in boosting revenue. A recent survey found that nearly 70% of customers spend more when using a BNPL service, a massive incentive for retailers. Increased merchant acceptance is, in turn, fueling greater adoption among consumers, especially younger generations.
While the percentage of shoppers leveraging BNPL in the U.S. has largely stayed the same since 2021, the portion reporting interest in future BNPL use has grown from 11% to 15%, according to a recent survey. The study also corroborated reports that BNPL drove increased revenue for merchants, as more than one-quarter of users said they would have bought less or not made a purchase at all were it not for the availability of a BNPL option.
For more on these and other stories, visit the Tracker’s News and Trends section.
Learn How Boundless Drives Financial Inclusion With BNPL
Few groups face more challenges in the U.S. than recent immigrants and those who wish to immigrate, especially when it comes to affording necessary services to support their efforts. Offering BNPL can benefit the business that implements it just as much as it benefits its customers. Customers are much more likely to complete purchases and in much higher quantities when they can divide the cost over multiple smaller payments, driving up the company’s revenue.
In this month’s Insider POV, PYMNTS talked with Xiao Wang, co-founder and CEO of immigration services startup Boundless, about how BNPL helps the companies that implement it.
The Advantages and Challenges of BNPL for Merchants
BNPL has taken the retail world by storm, thanks in large part to its impressive array of benefits for merchants and enhanced customer experiences. Nearly two-thirds of consumers say they are more likely to shop at stores that offer BNPL, and roughly two-thirds say that BNPL allows them to make purchases more frequently. Both reasons for using BNPL are excellent news for merchants that offer it, as they directly lead to increased ticket sizes, conversion rates and overall revenue.
This month’s PYMNTS Intelligence digs deep into the benefits of BNPL for merchants and how they can overcome implementation obstacles.
About the Tracker
The “Buy Now, Pay Later Tracker®,” a collaboration with Splitit, examines how consumers leverage BNPL to pay for goods and services and how this benefits merchants.