You’ve probably already heard about Buy Now Pay Later (BNPL). It’s a major payment trend in ecommerce and has transformed the way customers shop online today. BNPL is a solution that lets customers buy what they want now and pay for it in installments over time. And sometimes, there’s even no interest charged! This can be a huge help for customers who want to buy something more expensive but can’t pay for it all at once.
When customers shop on your ecommerce website, the BNPL process takes action upon their transaction. Once the customer is ready to purchase, the customer will be presented with some options using BNPL.
Some common vendors that get presented at checkout include PayPal Credit, Afterpay, Klarna, Affirm, and more. A soft credit check is performed on the customer, and then the BNPL vendor takes a percentage of the retail transaction. The customer will then pay off their balance over time, but your business gets paid upfront.
| Platform | Percentage of consumers who use it |
|---|---|
| Source: C+R Research | |
| PayPal Credit | 57% |
| Afterpay | 29% |
| Affirm | 28% |
| Klarna | 23% |
| Zip (Zip Pay) | 19% |
Buy Now, Pay Later vs. Credit Card Usage
56% of consumers who have used BNPL services say they prefer them to credit cards mainly because they’re easier to pay and offer more flexibility.
How many US shoppers are using Buy Now, Pay Later?
2023 statistics show that 88.2 million US shoppers opt for BNPL as their payment method. This is 33.9% of the total number of internet users, which means that more than one out of every three online shoppers use BPNL as their preferred payment method.
BNPL is not just a solution for customers. It can also bring these benefits to your ecommerce business:
By offering this option at checkout, businesses can make their products more accessible to a wider range of customers. Plus, it can help build trust with customers and make them feel more comfortable making purchases online.
Of course, businesses should still consider whether BNPL is the right move for them. It’s important to be transparent with customers about how the program works and any potential fees or charges. But overall, BNPL can be a great way to increase sales and make your ecommerce business more appealing to customers.
Want to get started with BNPL today? Contact Manalei Media and we can help elevate your ecommerce business by:
