In 2021, the expenditure of "buy first and pay later" increased by 230%, making it easy to use and risky


Author:Zeng Xuening
Source: ennews

Last year, due to the supply chain crisis, repeated epidemics, rising prices and labor shortages, retailers faced many challenges in their year-end holiday shopping. howeverThe popularity of the "buy now pay later" service has also helped businesses improve their sales.


In the United States only,BNPL's expenditure will increase by 230% in 2021, and this growth trend will continue until the holiday shopping season at the end of the year。 according toGoCardlessofAccording to the survey, there are42% of consumers who used BNPL for holiday shopping said that they were eager to spend money on holidays at the end of the year because they had lived with the epidemic for two years.


BNPL service is widely popular among young people. About one fifth of consumers choose it as their first choice for payment when shopping on holidays, and 22% of them are Generation Z. according to AfterpayofdataCompared with the same period in 2020, the number of Gen Z customers using BNPL will increase by 11% in 2021.


Data shows that the merchant providesWhen BNPL services, it will be easier to stimulate consumers' impulse shopping, and consumers will consume again as repeat customers.AndKlarnaCooperative provisionFor the retailers served by BNPL, the conversion rate increased by 30% and the order value increased by 41%. This will greatly help to improve the store image and repurchase rate.


on the other hand,PayPal, Klarna, Afterpay and AffirmWaitFinancial technology companies served by BNPL, regardless of their size, allow e-commerce and physical retailers to provide BNPL services to consumers.But every time these retailers useOrders for BNPL services must pay a certain percentage of commissions to these financial companies, some as high as 8-10%.So businesses are choosing to joinBNPL should also consider its own scale and cost when providing services, otherwise it will not pay off.


althoughBNPL brings many conveniences to businesses and consumers, but using BNPL will also bring debt crisis to consumers.according toCredit KarmaofInvestigation, yes34% of consumers using BNPL have missed one or more payments. In addition, some consumers who have maxed out their credit cards will turn to BNPL, which will further lead them to a debt crisis.


BecauseBNPL's consumers in debt crisis said that if they did not have a centralized way to track their purchases and payments, they would feel at a loss, because they did not know how much money they actually owed and when they owed, which would easily cause them to miss the repayment time.


Despite the risksThe popularity of BNPL continues to grow.according to Juniper ResearchofData, fromFrom 2021 to 2026, BNPL's consumer spending is expected to grow by about 274%.BNPL may also represent a permanent change in the way consumers pay for online or offline purchases.

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