Also referred to as "point of sale instalment loans," BNPL arrangements are becoming an increasingly popular payment option, especially when shopping online.

FREMONT, CA:A new financial segment has emerged as a result of the popularity of buy now, pay later (BNPL). The BNPL market is currently valued at USD 97 billion and is expected to grow. Given that more people are utilising this option, it is important to weigh the advantages of using such services.

BNPL has gained popularity among merchants worldwide because it allows e-commerce businesses to offer instalment products to customers who don't qualify for credit cards or live in nations with low credit card acceptance rates. In contrast to credit cards, BNPLs provide straightforward pricing structures and make it simple for customers to pay for goods over time.

The advantages of BNPL for clients are unquestionable. It offers almost fast approval with fewer lending limits, whereas credit cards have a tougher approval process and higher costs. BNPL services provide moderate or interest-free rates and merely perform a soft credit check that has no impact on the customer's credit score.

Accessible to a Wide Range of Customers

Providing flexible payment methods allows customers to complete checkout even if their paycheck is still pending. Credit is also available to those with a less-than-perfect credit score, which can lead to increased sales for the business. The payment method is more inclusive, which leads to higher conversion rates.

No Hard Credit Pull

BNPLs are easier to qualify for than new credit card applications. This implies that someone with little or no credit history may find it more enticing to make a purchase this way.

Encourages Customers to Purchase Higher-value Goods

Consumers are more inclined to make a high-value purchase when they can spread the cost out over time. In a QuadPay press release, businesses that used its BNPL solution witnessed a 60 per cent boost in average checkout value. Additionally, they noticed a 20 per cent rise in conversions.

Consumers have benefited from a plethora of advantages by using BNPL.

To begin with, its simplicity of use has made it possible to make purchases utilising the payment option without difficulty during checkout, resulting in a straightforward shopping experience. The primary USP of BNPL is the opportunity to defer payments and spread the cost, making it easier on consumers' wallets, particularly for those whose income has slowed down due to the pandemic. Additionally, the available payment schedules are frequently interest-free, so clients do not ultimately pay more when using this credit option for the assistance or products they are purchasing.

Retailers should consider integrating BNPL into their checkout process as the payment option is growing in popularity. Statistics from various sources prove that 71 per cent of consumers are likely to skip the checkout process if their chosen mode of payment goes unaccepted.