Buy Now, Pay Later (BNPL) Market
The BNPL Market
The Buy Now Pay Later market is exploding across the world. It is expected to grow from 3% of all e-commerce payments in 2018 to 9% by 2023. Australia is leading the way where almost 2 million Australians used a “buy now, pay later” product in 2018.
Although the economy has been hit hard, BNPL service providers have experienced exponential growth over the past few months. After all, customers still need to make purchases, they just might not always have the available funds in their bank accounts.
What is BNPL?
As the name suggests, at checkout you get the opportunity to buy something without having to pay for it until a later date. Generally, it is paid over several repayment dates, these dates can be anywhere from 30 days up to a year. If the purchase is repaid within the "delay period", there is no additional interest to be paid. However, if repayments are not met, it can be costly to the consumer as interest and a late payment fee can be added to the debt.
What to expect in the future?
Buy now, pay later has been received with mixed opinions, some viewing it as an encouragement for young people to purchase goods that they just can't afford and will ultimately lead them into an increasing level of debt. On the contrary, retailers have welcomed this new financial product as they have experienced a number of upsides such as;
- Up-front and in-full payments,
- Higher conversion rates,
- Higher average transaction value,
- Larger customer base,
- Repeat purchases.
How SalesOptimize can Help
We support BNPL providers by providing them a database of retailers accepting online finance through our self-serve lead generation / lead enrichment platform. Our patented technology has identified over 40K+ merchants who are now offering this service to their customers, however this number is growing by the week. We will continue to monitor this industry and the opportunities arising from it, if you would like to find out more, contact firstname.lastname@example.org for a free consultation.