Discover the reality behind BNPL and its benefits for both merchants and consumers

  • BNPL is a powerful tool for boosting revenue and loyalty
  • Consumers use BNPL to improve budgeting and cash flow
  • 73% of BNPL shoppers haven’t been denied other payment methods
  • BNPL is used for purchases of all kinds, not just luxury items
  • Most consumers don’t struggle to make BNPL payments on time
  • BNPL is valued by shoppers of all ages for its flexibility
  • Offering BNPL increases accessibility and can lead to greater sales

Retail payment options are undergoing a major transformation, right along with the consumers who use them. Buy now, pay later (BNPL) is continuing to gain momentum as a powerful tool that helps merchants boost revenue and loyalty while empowering shoppers to better manage their own finances. A 2024 survey led by Sezzle and Retail Dive’s studioID reveals who today’s BNPL shoppers really are—and they may not be who you think. Let’s take a closer look at some of the myths and truths we uncovered about these consumers. In the past, retailers may have thought consumers relied on BNPL in times of financial stress, but fiscal fragility isn’t the driver anymore. Instead, half of surveyed shoppers use BNPL to boost buying power and ensure that they have the cash flow they need to support their purchases. They also use it to avoid interest (32%), as well as to reduce credit card usage (28%), avoid longer-term debt (27%), and build credit (25%). Several years ago, BNPL was perceived as a way to spend beyond your means options like credit, debit, and retail cards or loans weren’t available—but the latest industry data proves otherwise. The truth: 73% of surveyed BNPL shoppers say they haven’t been denied a credit card, payment plan, or loan in the last three years. Instead of using the service to make up for a lack of other payment methods, they use it as a responsible approach to buying. Buying now and paying later allows them to pay in a way that works best for their financial situation, without overstretching their dollars or risking the possibility of overdrawing their bank or credit union accounts. “Today, retailers need to be agnostic when it comes to payment forms,” explains Nancy Eichler, who joined Sezzle as senior vice president of marketing after spending more than a decade in retail sales leadership. “It’s all about accessibility. If you’re not providing accessibility to your products by allowing consumers to shop using the form of payment and the BNPL platform they choose, then that’s a disservice—not only to the consumer but also to you as a retailer.” Traditionally, BNPL may conjure up images of people purchasing higher-value goods, such as luxury furniture, TVs and laptops, and indulgent vacations. But in reality, BNPL payment methods are used by consumers to make purchases of all kinds. According to surveyed shoppers, top purchase categories include: On average, consumers finance between $100 and $499 in a single purchase, but price ranges vary. Lee Brading, senior vice president of corporate development and operational excellence at Sezzle, says it’s becoming less about splurging on expensive items and more about convenience and flexibility. “Since Sezzle has launched its subscription products, we’ve seen average ticket price come down. People are using it more for everyday purchases.” Some retailers and consumers may view BNPL as a debt trap that enables spending to spiral out of control. They assume that purchasers don’t make payments on time and rack up costly penalties as a result, sometimes damaging their credit along the way. But most consumers (87%) say they don’t struggle to make their BNPL payments on time. Because they use a financing option that works for them, they can purchase responsibly and take advantage of the opportunity to split purchases into smaller payments without incurring interest or penalties. While younger consumers are often drawn to the benefits of BNPL, our survey reveals that shoppers of all ages value the flexibility it provides. Instead of age, purchasing through short-term financing is often driven more by life events and preferences—whether it’s college students buying books, young couples investing in home goods or retirees making car repairs. Today, offering BNPL is less about financial vulnerability and more about accessibility and personalized experiences for the consumer. “When merchants don’t offer BNPL, then they make their products inaccessible and lose access to the group of consumers who want greater flexibility in how they pay,” says Eichler. “By making your products and services available to a larger group, you’re naturally going to see a greater incremental lift.” Learn more about how both merchants and consumers can benefit from BNPL.

Factuality Level: 3
Factuality Justification: The article is heavily focused on promoting Buy Now, Pay Later (BNPL) services without providing a balanced view of potential drawbacks or risks associated with such payment methods. It lacks critical analysis and presents a one-sided perspective, making it more of a promotional piece rather than an objective examination of the topic.
Noise Level: 3
Noise Justification: The article provides a detailed analysis of the Buy Now, Pay Later (BNPL) trend, debunking common myths and providing insights into consumer behavior. It offers valuable information on how BNPL is used, who uses it, and the benefits it provides. The article stays on topic, supports its claims with data from surveys, and offers actionable insights for both merchants and consumers. Overall, the article is informative and relevant, with minimal noise.
Financial Relevance: Yes
Financial Markets Impacted: The article discusses the use of buy now, pay later (BNPL) payment methods by consumers, which can have an impact on financial markets and companies in the retail and e-commerce sectors. It highlights the importance for retailers to offer BNPL options to make their products accessible and attract a larger group of consumers.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Rating Justification: The article primarily focuses on the transformation of retail payment options and the growing popularity of BNPL as a tool for merchants and consumers. It does not mention any extreme events or their impact.

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