Buy Now Pay Later Continues to Boom

 

Apple recently launched its Apple Pay Later service for iPhone and Mac users in the U.S., which allows for a "pay in full" option as well as a new "postpay" option. This service can be used at any store that supports Apple Pay, and marks Apple's entry into the "buy now, pay later" service market.

 

It's worth noting that the concept of "buy now, pay later" has been around for some time and is not unique to Apple. Other companies have been offering similar services for years, such as Afterpay and Klarna. However, Apple's entry into the market is significant given its massive user base and brand recognition. The launch of Apple Pay Later could lead to increased competition and innovation in the buy now, pay later industry.

 

Buy Now, Pay Later (BNPL) is a solution for point-of-sale financing that has grown increasingly popular in recent years, particularly among the younger generations. At the beginning of this year, Global Payments released the 2022 Commerce and Payments Trends Report and mentioned that 2022 is the year that BNPL will become a mainstream payment method.

 

More and more merchants support BNPL. According to CouponBirds' survey of 200 retailers, 18% offer Buy Now Pay Later service to customers' online shopping.

 

 

Some of the retailers which accept BNPL are as follow: 

 

 

The COVID-19 pandemic has had a significant impact on numerous industries, including the e-commerce sector. Since the outbreak of the pandemic, the volume of e-commerce transactions has skyrocketed, and it has also led to significant growth in the buy now, pay later (BNPL) loan model market. Currently, the top three global BNPL companies are Afterpay, Klarna, and Affirm. These companies have experienced tremendous growth over the past two years, with both cross-border merchants and consumers eagerly embracing their services.

 

As a result of the pandemic, consumers are seeking flexible payment options that allow them to make purchases without having to pay the complete amount upfront. BNPL services allow consumers to spread out their payments over time, which has made them more appealing to budget-conscious consumers. As the e-commerce industry continues to grow, it's likely that BNPL services will also experience continued expansion, giving consumers more payment options and companies more opportunities to increase sales.

 

 

CouponBirds' research found that compared with the period before the epidemic, the cooperative merchants of the three payment giants increased by 235.48%, and the active users increased by 127.47%. And as of now, two-thirds of Americans are more interested in BNPL, especially Millennials and Gen Z.

As consumers and businesses continue to adapt to new ways of shopping, we believe that new shopping patterns will continue to emerge, making our way of consumption more convenient.

 

Reference

1. Global Payments, "2022 Commerce and Payment Trends Report".

 

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