Buy now, pay later (BNPL) is like the layaway of long ago only better, because shoppers get to take merchandise home upon purchase — not payment. With no fees or interest to the consumer, it’s also been a plus for merchants who can close out more carts by offering flexible payment options.
Retailers have realized that consumers are more likely to buy rather than browse and have a tendency to spend more money if there is a BNPL option available, PYMNTS research shows. While most BNPL transactions happen online, attracting shoppers to in-store availability could start with seamless integration of the BNPL option into the point of sale (POS) experience.
A recent PYMNTS study done in collaboration with Zip showed that luxury store and specialty boutique shoppers are curious about BNPL, with 56% of respondents stating that they were “highly interested” in using installment payments for online purchases.
As far as bridge millennials and millennials, 66% of survey respondents said that they think highly of luxury and specialty merchants that extend BNPL payments both in-store and online. By promoting BNPL options in a manner tailored to demographic groups, retailers can reap more benefits.
Some shoppers also indicated that they would change stores to get a BNPL option. The survey showed that 46% of department store customers would switch to another retailer if their preferred store didn’t offer installment payments.
The data shows that retailers offering BNPL can realize new opportunities for profits while also making themselves stand out apart from their rivals.
To learn more about the steps merchants can take to increase usage of BNPL options by in-store shoppers, download the report, BNPL And The In-Store Opportunity: Why Merchants Must Offer Payment Flexibility At The POS.