Is Buy Now Pay Later the safe option for you? 5 things to consider
The rise of ‘Buy Now Pay Later’ (BNPL) services has revolutionized the way consumers make purchases, offering the allure of immediate gratification without upfront costs. Recent data indicates a significant increase in BNPL’s share of e-commerce transactions globally, rising from 0.4% in 2016 to 1.6% in 2019 and reaching 3% in 2021. This trend has propelled the global BNPL market size, which is now projected to reach an impressive $596.7 billion by 2026. In India, the BNPL sector is moving at 65% YOY growth and is expected to attain a valuation of $40 billion by 2025.
As the utilization of BNPL options continues to expand, businesses are striving to gain a competitive edge in the market. However, concerns have been raised regarding the affordability of these payment methods and the potential presence of undisclosed terms or fees. To help you make an informed decision about BNPL, this article highlights the five most important factors that should be taken into account. But before delving into that, let’s briefly understand the concept of BNPL.
‘Buy Now Pay Later’ (BNPL) is a type of short-term financing that allows customers to make purchases and spread out the payments over a period, usually without any interest charges. Let’s examine this concept from the customer’s point of view.
When shopping online, customers can browse products and add them to their virtual shopping cart. Once they are ready to complete their purchase, they click on the ‘checkout’ button. Apart from the traditional payment methods like credit cards, they now have the option to choose ‘Buy Now Pay Later’, which provides them with greater flexibility in their buying experience.
Although using the BNPL payment method can be convenient, there are
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