Buy Now, Pay Later (BNPL) is a famous sales strategy among younger generations nowadays. Best buy now pay later cards emerged in the early 2010s to address issues with financing, including complexity and credit cards with high fees and APRs.
Consumers have sought alternate payment choices as a result of these frequently high fees, according to a poll performed by Insider Intelligence, resulting in the success of BNPL.
BNPL solutions, which are a substitute to credit cards and other forms of financing, let customers acquire a commodity and return for it over time in a set number of installments.
These choices are commonly offered to customers with low to no interest rates and no hidden costs.
Changes in customer experience:
The ‘Buy Now, Pay Later’ strategy, that is also referred to as installment plans or payment plans, drives a customer’s product choice and possible substitutes. This method allows the potential borrowers to pay and remain engaged with a business.
These choices are commonly offered to customers with low to no interest rates and no hidden costs.
Adjustable solution:
‘Buy Now, Pay Later’ is a favorite choice as compared to credit cards. When enrolling for a credit card with any lender, you must meet the eligibility requirements and present the necessary evidence. However, you can simply take benefit of this option while using the ‘Buy Now, Pay Later’ strategy.
New items are being developed, as well as new purchase possibilities.
The path to internet business is not easy, but new ways are developing to assist you in catering to clients in a way that benefits all. If you’ve built your ecommerce tech stack that includes current payment processing software that allows digital payments, connecting a BNPL service won’t be difficult.
Purchasing power depending on demographics
Millennials and Generation Z make up a sizable portion of the BNPL Interest-Free client base. They love the simplicity of use of this payment option, which is typically powered by technology, because they are tech-savvy. Because of its accessibility, this mode is becoming more popular in Tier II and Tier III cities, as well as rural areas.
Increased Purchasing Power
Because of its accessibility, customers can spend even more money with BNPL Interest-Free, especially during festival seasons. According to one survey, 48% of the customers confessed that BNPL gives them freedom to spend up to 20% more than they are able to with credit cards.
It can also be utilized for spontaneous or last-minute purchases. Customers can also use this transaction method to obtain high-value items and devices.
Last Thoughts
“Buy Now, Pay Later” is a corporate strategy. Many e-commerce organizations have tried to employ ‘Buy-now-pay-later’ tactics to promote profits on their services.
For example, Amazon just unveiled ‘Amazon Pay Later,’ a new credit plan in India that offers Amazon customers to earn spontaneous credit that could be used to buy things or make payments.
While credit cards would be the first to offer online pay-later options, they are still not widely used in India although most Indians do not use credit cards for regular transactions and only use them for necessities or significant purchases. To get the top BNPL cards in India, check your CIBIL score.
Consumers are becoming more aware of BNPL for a variety of reasons, one of the most essential of which is its flexibility. Customers can usually pay in installments and choose how long they have to pay their bill. It’s also popular since it allows you to purchase more expensive things, and younger BNPL users say they prefer it to credit cards. According to a survey of over 1,800 consumers, the most common motivations for utilizing BNPL are to eliminate using credit cards and to purchase high-value things.
