Jane.com on Bringing BNPL Options to the Table for Younger Consumers

BNPL plans are becoming more popular among consumers from all generations, but some of the method’s most enthusiastic users tend to be millennials and members of Generation Z. As a result, retailers that routinely cater to consumers in these age groups have become increasingly interested in offering installment payment services to build loyalty and foster engagement.

Clothing and decor website Jane.com has a significant number of millennial and younger customers, according to Mark Spencer, the company’s senior vice president of commercial operations, making BNPL payments a particularly good fit for its business model. Spencer added that BNPL use among the company’s customers skews toward younger demographics as well.

“I think the buy now, pay later product is really on point for that demographic,” he said. “I think that it allows them to look at purchases that they perhaps wouldn’t think about today or are thinking about in the future, but they can’t get today,” Spencer said.

Spencer added that there are several aspects of BNPL that he believes appeal to younger users. He explained that BNPL plans are not conventional credit products, giving consumers who have the necessary funds but lack established credit histories the opportunity to make larger purchases. He also remarked on consumers’ general usage of BNPL plans to purchase bigger-ticket items, noting that BNPL purchases at Jane.com tend to be roughly double the size of those made using other payment methods.

BNPL as a Preferred Payment Choice

BNPL appears to be replacing other payment options for some shoppers, Spencer noted. Jane.com launched its BNPL option in March, and the current share of purchases conducted using the method is nearly 100% higher than its usage during the first three months it was available. The structured payments and lack of interest makes BNPL appealing as a credit card alternative for younger consumers who may be more budget-conscious, he explained.

BNPL has also come into play during times of the year when customers are buying more, and not just during the holidays.

Spencer said that Jane.com saw a spike in BNPL use last year during the back-to-school shopping season. BNPL carts are typically double the average cart size of the other buyers, but they jumped to four or five times the average cart size as shoppers stocked up on items before the school ear began. He also noted that installment payment plans make it easier for customers on the fence about particular colors or styles to make multiple purchases rather than choosing just one variation.

Benefits of BNPL to Companies’ Bottom Lines

The increases in usage and cart size that BNPL confers also offer clear benefits to merchants. Spencer said that BNPL users’ carts are often 80% greater in value than those of customers who do not use BNPL, and these users also tend to return to the website more often to make purchases.

“We actually see a significant increase in items going into the cart, and we’re seeing people come back more frequently,” Spencer said.

Jane.com already has a relatively younger following in terms of its target demographics, but Spencer explained that offering installment payments has allowed the company to better reach Gen Z consumers and establish them as loyal customers. Some of the strongest competitors entering Jane.com’s market space are targeting the same customer base, he noted, so having BNPL options has given it a leg up on competitors when it comes to customer engagement and retention.

“It’s made us be a little bit more scrappy and able to seize that chance to target a younger demographic,” Spencer said. “That’s something that we’re working really heavily on, particularly with our creative assets that we’re coming up [with] this year. We’re going to be skewing a little bit younger than previously.”

Getting in on BNPL’s Benefits

Another key benefit for businesses that offer BNPL starts before customers even reach their websites: marketing. Spencer explained that Jane.com’s BNPL provider promotes businesses offering its product, and there can be added appeal for consumers who see a business promoted on a provider’s website when they are already making purchases within that provider’s ecosystem. Spencer said that Jane.com has also coordinated marketing efforts with its provider, allowing the businesses to cultivate a strong relationship and work closely together on promotions.

Retailers of all stripes, especially those that cater to younger consumers, are realizing the benefits of offering BNPL plans to earn new businesses and keep customers coming back. Keeping the payment method front and center when customers make purchases can help them encourage bigger purchases and drive satisfying experiences in the years ahead.