The growing adoption of Buy now, Pay Later payment methods is driven by consumers’ desire for flexibility and agile solutions.
Globally, the value of BNPL is expected to reach 12% of total e-commerce spending on consumer goods alone by 2025, according to Kaleido Intelligence. The same source also indicates that spending using BNPL methods could reach $680 billion worldwide by 2025, up from $93 billion of global sales in 2020.
How to explain such a success?
Today’s consumers want to evolve in a digital world suited to their needs, mixing fluidity of the user experience, security of payments, personalisation of services and diversity in payment methods. Thus, various factors explain the massive adoption of the Buy now, Pay later solutions by customers, and especially by the younger generation.
Flexibility and control go hand in hand
Many consumers find the terms and fees of consumer credit confusing – and even, misleading. Young people in the U.K. have become ‘creditaverse’, according to a major study of shopping and spending habits conducted by YouGov and Clearpay. Instead, they are increasingly hungry for innovations which offer more convenience and avoid debt.
With this in mind, BNPL payment methods such as Clearpay offer transparent solutions with easy-to-understand terms and conditions. With the ability to pay in instalments at no cost, consumers can shop and manage their finances responsibly and simply, without going through a lengthy sign-up process or having to pay off long-term credit. Shoppers therefore have greater control over how and when they pay.
A favourable context to BNPL
Many consumers are using BNPL for everyday spending as part of a smart budgeting strategy. Tighter budgets have made BNPL a convenient option for many, as it allows them to purchase the items they want without having to worry about paying the full amount upfront. Finally, features such as spending limits, payment reminders and capped late fees reinforce the responsible nature of the solution.
Express implementation on e-commerce websites
Setting up a BNPL payment service is simple and accessible to all online stores. Integration is very easy thanks to dedicated modules like Clearpay’s for PrestaShop or directly through APIs like Clearpay’s. At Clearpay, dedicated teams support partners step by step, at every stage of the implementation, to be operational and benefit from the value of BNPL as quickly as possible.
What are the key benefits with Clearpay?
With Clearpay, merchants gain access to a large and growing segment of shoppers who prefer not to incur credit card debt or interest. Online shops can offer a flexible and innovative payment method that promotes financial well-being for the younger generation, while being protected from any risk of fraud or non-payment. Merchants receive the amount of each purchase from Clearpay up front the very next day. Transparency and security are key elements of Clearpay’s solution, which guides users step-by-step through the purchase process, clearly indicating the amount and date of each payment due in 4 instalments, free of charge, over a fixed period of 6 weeks.
On average, Clearpay partners are seeing a 22% increase in conversion rates and lower return rates. Shopping carts with Clearpay are also on average 20-30% higher than with traditional payment methods. Last but not least, when Clearpay is offered as a payment option, merchants partners report an increased purchase frequency and a greater customer satisfaction.
Discover Clearpay’s PrestaShop module, for a seamless integration to your online shop: