BNPL services that offer installment loans to consumers are increasingly popular in 2024. At the same time, the flexibility of such services can significantly boost revenue for retailers and expand their customer base.
According to PYMNTS Intelligence research, the popularity of BNPL services grew substantially over the past year. In 2024, sales through BNPL services grew 28% compared to 2023.
BNPL (Buy Now, Pay Later) is a short-term financing method that allows customers to make purchases immediately and pay in installments in the future. This payment method offers flexible terms without the need to pay the full amount at once. Often, BNPL doesn’t charge interest or fees if payment terms are met.
Analysts note that the catalyst for the segment’s growth is the active use of BNPL by retailers and services offering subscriptions to various services. About a third of retail users now generate ~79% of subscription service revenues. At the same time, users tend to abandon services that don’t offer BNPL.
Particularly notable is the growing popularity of using BNPL during major sales, such as Black Friday. Analysts also found that the number of transactions using BNPL services increases by approximately 47% during the holidays. During sales days and holidays, consumers spend an average of $150 more at merchants that offer BNPL payments than at merchants that only offer traditional payment methods for goods and services.
Analysts also state that short-term financing services have great potential to drive retail business. With BNPL, merchants can not only reduce customer churn, but also encourage repeat or larger purchases by offering customized payment plans and terms.
Approximately 75% of bank users are willing to abandon their services in favor of innovative payment solutions.
Сообщение Popularity of Short-Term Financing Services is Growing появились сначала на CoinsPaid Media.