Customers’ return to physical stores has been underway in recent months, with many viewing in-person retail as a treat after more than a year of health-related restrictions. Despite this, they still expect many of the new spending methods upon which they relied during their digital shift to be available at checkout — including buy now, pay later (BNPL) plans.
Global demand for BNPL solutions is on the rise, and many merchants are using the option to encourage consumers to spend more while in their stores. This has made installment payment plans a crucial piece of the payments puzzle for small- to mid-sized businesses (SMBs) as they seek to increase foot traffic and gain an edge against larger retailers.
The August edition of the Buy Now, Pay Later Tracker® examines how BNPL is gaining acceptance among new audiences globally as well as how the payment method can benefit SMBs looking to offer the flexible payment options modern consumers seek.
Around The Buy Now, Pay Later Landscape
There is plenty of evidence to illustrate the significance of BNPL’s impact on the SMB space. PYMNTS recently found that installment payment plans are game changers in large urban markets, particularly those with 1 million or more residents. Demand for installment payment plans in these markets has grown by 40 percent over the past several months, while small businesses that were less than a decade old reported that almost half of their customers frequently tap BNPL solutions.
BNPL plans are also gaining ground in the brick-and-mortar space as United States merchants work to boost customer engagement in stores. Installment payment provider Afterpay recently announced that it has partnered with Paris-based Unibail-Rodamco-Westfield to offer the former’s solution at the latter’s U.S. shopping centers. Customers will be able to tap Afterpay’s BNPL option at stores such as The Children’s Place, The Container Store and Lush Cosmetics.
A growing number of travel and hospitality firms are also turning to BNPL solutions. One of the latest to tap BNPL is the Palazzo Versace Dubai, which is the first luxury hotel in the Gulf region to accept installment payment plans for all services and amenities.
For more on these and other stories, check out the Tracker’s News & Trends section.
Naked Nutrition On Offering BNPL To Put Supplements Within Reach Of More Consumers
Customers are growing more and more comfortable using installment payment plans for their purchases, whether they are buying toys, clothes or even nutritional supplements and other health-focused products. In this month’s Feature Story, Stephen Zieminski, founder of wellness brand Naked Nutrition, explains how offering BNPL allows the company to make consumers more comfortable purchasing products at high price points and ultimately boosts conversion.
To get the full story, download the Tracker
Deep Dive: How BNPL Plans Can Support SMBs’ Reopening Strategies
Many consumers are eager to get back to in-person shopping, but SMBs looking to reestablish their customer bases can find it hard to compete with brick-and-mortar behemoths that have brand recognition and a national or international presence. BNPL plans, however, could help them even the playing field. This month’s Deep Dive examines how installment payment plans are finding favor among merchants worldwide, as well as how SMBs can reach more consumers and boost customer spend by making these payment options available.
Read the full Deep Dive in the Tracker.
About The Tracker
The August Buy Now, Pay Later Tracker®, a PYMNTS and Afterpay collaboration, brings you the latest news and research from the buy now, pay later space. The August edition reveals how installment plan options at checkout are driving customer engagement as consumers continue their return to physical stores, particularly small to mid-sized businesses (SMBs).