Buy now/pay later can be a pricing tool for retailers

Buy now/pay later not only is a way to reach new consumers, it can also increase sales conversions for retailers.

One study found that “nearly half of consumers said they spend anywhere from 10% to over 40% more when they use the buy now and pay later plan versus when they use a credit card.” Additionally, the average order value of products bought with BNPL is up to 60% more than those purchased with traditional cash or credit methods.

BNPL is also appealing to consumers, and thus beneficial to retailers because the optics of BNPL are just better.

The look of five payments of $20 seems less detrimental to a wallet than a one-time $100 fee. While some may argue that this is effectively the same method credit deploys, BNPL takes away the responsibility of having to pay off what you owe by setting up automatic payments, thus eliminating the potential punishment associated with missing a payment on a credit card bill.

As consumers demand more innovative payment solutions, BNPL is set to thrive this year and beyond. The most forward-thinking retailers will see this trend for what it is: A simple, effective and honest way to boost customer spending and meet them where they are.