E-commerce is making it easier for customers to buy virtually anything from the comfort of their homes. However, one of the main obstacles to fully embracing this trend is a lack of buyer purchasing power.
It should come as no surprise then that one of 2021’s biggest trends, especially among GenZ and millennials, is buy now/pay later.
BNPL is very simply an alternative payment option. Really the name says it all. Through this method of purchasing, a consumer can pay a piece of the cost of a product, leave with that product and continue paying the remaining balance over the coming months. It can be thought of as an instant gratification version of layaway. However, rather than having to wait to receive your item until all of your payments have been made, BNPL allows consumers to buy their item and immediately have it transferred into their possession—or be shipped to them.
Millennials and other younger generations are moving away from credit cards. Between student loans, massive home costs and elevated interest rates, younger citizens are increasingly in debt and because of that, increasingly wary of the credit and credit card industry. As young people shun hidden fees, interest payments and credit card companies profiting off the potential debt of their clients, BNPL could be a natural solution.
BNPL not only doesn't lock people into hidden fees, but it also puts the money directly into businesses. For a socially conscious generation, this is especially appealing when their payments could fully go to a small business rather than a portion going to a major credit card company or bank.
