PayPal Pay Later products allow for easy promotion by allowing merchants to add dynamic messaging to their site in a single integration. With consumers doing a great deal of their shopping on digital channels, it is wise to integrate the BNPL financing alternative as a major component of holiday marketing on websites, as part of high-end product marketing and even being a lead component for past customer reengagement. Online advertisements were the third-most mentioned way that consumers learned about BNPL options (31%). This is true especially for millennial and Gen X consumers, where 57% of millennial BNPL buyers and 62% of Gen X BNPL buyers discovered BNPL on retailers’ product pages. 4 Therefore, businesses must be proactive in their holiday marketing to ensure potential buyers are aware that BNPL options are available well ahead of checkout.Īccording to the PYMNTS research 1, 57% of consumers who used a BNPL alternative in the last year found out about the option on the merchant’s product page as opposed to seeing the option at checkout. Marketing the BNPL Solution to Potential CustomersĪccording to data from a Citizens survey, 76% of consumers would be more likely to complete a purchase if merchants offer a simple and seamless payment plan. For merchants already using PayPal Checkout, Pay in 4 and PayPal Credit 2 are quick and easy to implement in the checkout experience, which can help drive those critical holiday sales. As we enter the holiday season, the possibility to provide an alternative financing option may be the difference between a sale and a customer looking elsewhere. In 22% of the instances, consumers need the BNPL option for high-value purchases since they have no other credit alternative. When asked to compare BNPL solutions to credit cards or a personal loan, 26 percent said they want to avoid locking up their credit lines for expensive purchases, especially when the expense will be enjoyed in the future, such as travel. It was found that 61 percent of BNPL users seek this predictability to pay for purchases over a fixed period of time. In some cases, these consumers may need an easy financial option to pay monthly expenses on time. consumers on tight monthly budgets and who live paycheck to paycheck, according to the PYMNTS study 1. The predictability of BNPL is a major benefit mentioned by consumers, especially among the 140 million U.S. It also helps merchants at a time when they are needing strong holiday sales that suffered in 2020. Very close to the same percentage of consumers (27%) stated the same level of interest in using BNPL for medical procedures, with 26% saying they would use BNPL options for remodeling costs.Īs we enter the holiday season, the potential to use a solution like PayPal’s Pay Later products provide the ability for consumers to enjoy the holiday more while still staying within their budget. Using BNPL to assist with the funding of a vacation was the most mentioned big-ticket item, with 28 percent of consumers saying they are ‘very’ or ‘extremely’ interested in making vacation- and travel-related BNPL purchases. This represents 111 million consumers willing to finance everything from medical expenses to education or even high-ticket holiday purchases or holiday vacation costs with this relatively new credit alternative. More importantly, eight in ten consumers would prefer to make high-value purchases using buy now, pay later (BNPL) over personal loans or credit cards in the future. The research also found that roughly 11% of the population, or 29 million individuals, have used BNPL at least once over the 12 months prior to being published.

Others want to avoid tying up their credit lines. The appeal comes from the ability to split larger purchases into smaller, more manageable payments over a period of weeks or months.Īccording to research by PYMNTS1, when asked about why they use a buy now, pay later option, 61 percent of consumers said they do so because the payment flexibility offers a better way to manage their spending on purchases through spreading out payments over time, with 42 percent saying they use BNPL so they do not have to worry about paying interest.

One of the fastest growing products to come out of the pandemic is the buy now, pay later (BNPL) service which provides a convenient, credit alternative at the point of sale.

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