Buy Now Pay Later

Report: Installment Payments Newest Feature: Social Responsibility

Engaging customers in socially responsible causes can help retailers build trust and develop lasting relationships that translate into many return visits.

A recent study found that 47 percent of consumers around the world would be more inclined to trust businesses that support environmental or social causes they embrace, for example, while 53 percent said a business’s outreach in causes they support would make them more likely to endorse the firm’s goods or services.

The pandemic is currently causing severe disruption and financially threatening the existence of many nonprofit community organizations, but many retailers are teaming with buy now, pay later (BNPL) solution providers to form partnerships that can encourage customers to donate to pandemic-related causes. Some retailers are engaging consumers by allowing them to use their BNPL accounts to donate directly to nonprofits they choose. They are also developing brand awareness in the community and fostering customer loyalty by doing so.

In the August Buy Now, Pay Later Tracker®, PYMNTS examines how retailers are working to support various charitable causes, how many are turning to BNPL solutions to help and what this means for retail sales and customer engagement.

Around The Buy Now, Pay Later World

Generation Z consumers are becoming an increasingly popular demographic for retailers, especially as they continue to develop considerable spending power. Many merchants are therefore working to offer the payment options these consumers value, including BNPL solutions. Research shows that providing these payment methods, as well as supporting and contributing to the social and environmental causes that Gen Z consumers hold dear, could go a long way toward earning and keeping their business.

Other brands have found that offering BNPL solutions can give them the flexibility to pursue their own charitable initiatives. Atlanta-based lifestyle and apparel brand BlackCool was recently able to leverage installment payment options to boost its sales by 600 percent, said CEO and Founder Rocky D. Williform. He said these payment options have also allowed customers to afford items such as a commemorative T-shirt, from which some proceeds will go toward a nonprofit Black cultural heritage initiative.

BNPL offerings are also entering various sectors outside of retail, including live entertainment ticketing. Ticketek New Zealand recently began offering BNPL payment plans for ticket purchases through a partnership with Afterpay. This comes on the heels of Ticketek Australia integrating BNPL services in early July. The company claims to be the first ticketing platform in the world to offer BNPL services.

For more on these stories and other BNPL headlines, read the Tracker’s News and Trends.

Casely Teams With Nonprofits To Assist In Pandemic Relief Efforts, Engage Customers

Consumers today value companies that do more than just make services and products — they want businesses to take on numerous socially responsible causes that can make a difference in their communities.

In this month’s Feature Story, Jeremy Smith, head of product at mobile accessories retailer Casely, discusses how partnering with various charitable organizations has helped grow the business and expand its demographic reach.

Deep Dive: Aligning Charitable Giving With Installment Payment Plans Boosts Sales

Consumers are seeking ways to support causes that are meaningful to them, and they are also looking for companies that align with their values and offer payment plans that make it possible to do so.

This month’s Deep Dive examines how retailers are getting involved with socially responsible projects in their communities and how flexible payment offerings, such as BNPL solutions, can help consumers partner with merchants to tackle issues of concern to them.

About The Tracker 

The Buy Now, Pay Later Tracker®, a PYMNTS and Afterpay collaboration, brings you the latest news and research from the BNPL and retail space. It features expert analysis regarding changing payment trends as well as insights from top insiders within the retail and fashion industries.

——————————

PYMNTS TV LIVE OCTOBER SERIES: B2B PAYMENTS 2021 – WHAT WILL YOU CHANGE? 

Banks, corporates and even regulators now recognize the imperative to modernize — not just digitize —the infrastructures and workflows that move money and data between businesses domestically and cross-border. Together with Visa, PYMNTS invites you to a month-long series of livestreamed programs on these issues as they reshape B2B payments. Masters of modernization share insights and answer questions during a mix of intimate fireside chats and vibrant virtual roundtables.

TRENDING RIGHT NOW