‘Buy Now pay later’ is forming new consumer attitudes towards payments
Shopping habits of consumers change constantly. The rapid growth of technology in the digital age offers consumers unprecedented levels of convenience and ease in their shopping routines. The rapid growth in the popularity of Buy Now Pay Later (BNPL) is proof of this advancement. BNPL is among the fastest-growing payment online methods, growing at a rate that is more than double that of bank transfers, and more than triple the rate for digital wallets. With such rapid advancement, businesses that are focused on consumers need to adopt strategies that take advantage of this trend to increase earnings potential.
At Coinstirs, we are committed to this. That’s exactly what we’re planning to do. To ensure the most enjoyable shopping experience for our customers, Coinstirs integrates a BNPL option to our platform. This gives users the possibility of customizing their shopping experience.
What is ‘Buy Now, Pay Later?’
According to Experian’s research, buy now and pay later plans are exactly as described. Consumers can purchase products without the need for full payment until the day after.
The installments of payments are usually pre-negotiated and differ between regular interest-free installments or following the initial interest-free period.
BNPL offers a variety of payment options for payment. Certain agreements allow payment within a set time and others permit payment on purchases by installments. The main benefit to BNPL programs is their flexibility as well as the comfort that consumers can enjoy. It gives consumers with the ability to purchase products even when they don’t have enough cash to purchase the item at the moment.
BNPL Plans are emerging as the sought-after online payment options
What is the reason behind the recent increase in popularity? What is the reason why now more than ever before are people particularly millennials accepting BNPL plans? A brief look at the benefits offered to consumers sheds illumination on the reasons why more people are now using these plans and what they mean going forward.
It is the BNPL Plan is preferred option for shoppers who are younger, such as Gen Z and millennials. Although every plan differs regarding the number of payments will be made in accordance with their particular terms- the main thing they share is a zero-interest payment system that allows for the flexibility of their services in financial terms. This is because they are given greater control over the payments without having to worry about extra fees or unexpected unpleasant surprises from companies.
Installment payment is a great alternative for those who do not have credit or prefer the flexibility to pay using any method that is feasible. This is particularly true when consumers are able to afford only one installment, when the time comes but aren’t able to afford the whole purchase in one go!
Research by Forbes indicates that BNPL plans to grow to $100 billion by 2021. The percentage of American-based Gen-Z’s who use BNPL plans increasing by sixfold in the past two years. Consumer retail sales that are made using BNPL plans by 2021 is already at a record high, more than double that of the previous two years!
Chart showing the growth of BNPL plans in the US for purchases at the retail level | Forbes
It’s not only the US in which BNPL has taken over consumer shopping habits however, the trend is globalized. This is particularly true for the UK.
The research conducted by Finder discovered that BNPL is the fastest-growing internet-based payment option in UK and it was further accelerated during the COVID-19 epidemic where more than 50 percent of BNPL plans were utilized. As in similar to the US, BNPL remains the most used payment method among the millennial generation, and BNPL purchases online are growing at an average of 39% annually.
Alongside convenience, psychological plays an important role.
On an episode of the Wall Street Journal podcast, AnnaMaria Andriotis shared comprehensive thoughts about the growing popularity of BNPL plans.
She mentioned that some of the most popular platforms, like Amazon as well as Bed Bath offer BNPL plans for shoppers that could lead to a rise in size, which will result in a strong challenge to the existing credit card firms.
Another factor Andriotis discussed is the subject of psychological factors. Retailers are advertising their products that offer the “pay in installments” option which makes it more affordable to buy. When a buyer is browsing an item that costs $100, they might initially be reluctant to buy because of the $100 price cost. But when using BNPL plans, the option to “pay $25 in four easy installments” alongside the $100 price tag provides the mental shift that is needed by the buyer to think that the purchase is affordable.
Coinstirs will offer BNPL solutions that are geared towards payments
In line with our aim to make cryptocurrency payment easy and convenient to access, Coinstirs platform will offer the BNPL option. In order to allow users to benefit from the advantages previously mentioned that BNPL is just one option in a variety of payment-focused services that provide an exceptional and extensive crypto-related user experience. This BNPL movement is part of framework of consumers’ purchasing habits and shopping habits and is likely to increase over the next few years. It’s crucial that we stay in the forefront of this trend.
Coinstirs strives to create and make cryptocurrency payments effortless and simple for everyone. Coinstirs’ innovative payment solutions give users the ability to conduct borderless transactions faster, with ease. By incorporating features like BNPL for those who require the need it, Coinstirs will be on track for a thrilling future!
Coinstirs is a cryptocurrency alternative to mobile payment solutions. Coinstirs’ platform lets P2P payments simple, straightforward and easily accessible. As we move to an economy based on cryptocurrency, Coinstirs provides the market convenience required to facilitate cross-border payments globally. With our platform, we seek to facilitate global adoption of crypto and enhance the performance in financial transactions.