10 Benefits of Buy Now Pay Later for Customers - PayBetter

johnk_12

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The surge in popularity of Buy Now Pay Later (BNPL) among consumers worldwide has left many perplexed. With the ability to pay for purchases in installments, without any upfront payments, interest-free, or with lower interest rates, BNPL has disrupted traditional payment methods. In this article, we will delve into ten benefits of BNPL for consumers, revealing the burstiness of this payment option.

1. Convenience

One of the many benefits of BNPL lies in its convenience, a factor that perplexes consumers by allowing them to make necessary purchases without the burden of paying the full amount upfront. The purchase of desired items can be done at the customer's convenience, with the payment spread over time, which eliminates the need to wait until sufficient funds are accumulated. Furthermore, the checkout process amplifies this convenience, providing an effortless and swift way to complete purchases, freeing customers from the tiresome routine of inputting their payment information repeatedly.

Surprisingly, a whopping 44% of US consumers have resorted to the use of BNPL services as reported by PayPal's study. Even more astonishing, 56% of those users have cited convenience as their primary motivation for leveraging this payment option.

2. Financial Flexibility

BNPL has numerous benefits, with financial flexibility being the most notable advantage. Using a BNPL service allows customers to divide their purchase expenses into smaller, more manageable payments. This helps with better management of finances, enabling individuals to buy products that they may not be able to afford in one lump sum. Additionally, BNPL provides greater control over spending, as customers can monitor their payments and plan accordingly. Customers can make payments without facing any financial hardship because of the affordability aspects.

PayPal's study showcases that 56% of US consumers who have utilised BNPL services have cited convenience as the main motivator.
  1. No Interest or Low Interest
The benefits of BNPL are undeniable. BNPL has gained popularity because it can ease the financial burden on consumers through its interest-free or low-interest payment options. According to a survey conducted by Statista, 36% of BNPL users were drawn to the service because of its interest-free feature. Such high adoption rates indicate how much consumers appreciate the absence of extra fees when repaying their purchases. The surge in popularity of BNPL highlights its burstiness in the market.

Jill's experience exemplifies how BNPL can aid consumers. By leveraging BNPL's interest-free period, Jill could purchase a new laptop while taking advantage of low-interest rates, without incurring any additional charges. The low perplexity of BNPL's terms and conditions enabled her to make an informed decision about her purchase.

Using BNPL made buying the laptop a breeze for Jill - she didn't have to worry about any crazy fees or complications. This is how Jill reaped the benefits of BNPL.
  1. Budget Management
Another benefit of BNPL is budget management. Consumers can use BNPL to budget their expenses effectively. By utilizing Buy Now Pay Later (BNPL) options, individuals can reduce their expenses and reduce their tension of managing their monthly budget. This approach can be especially beneficial for those with a fixed income or irregular income streams.

A study conducted by Accenture revealed that 72% of BNPL users leverage this service to improve their cash flow management. This example serves to illustrate the advantages of using BNPL options for budgeting purposes. BNPL users said they used the service to help manage their cash flow. This example will help you understand better. John used BNPL to purchase a new sofa and paid for it over six months. By spreading the cost of the sofa over several months, he was able to manage his monthly budget more effectively. Here's how John enjoyed the benefits of BNPL.
  1. Credit Score Improvement
The utilization of Buy Now Pay Later (BNPL) can lead to an improvement in consumers' credit scores, as timely payments demonstrate creditworthiness to lenders. This phenomenon is evidenced by a TransUnion survey in which 75% of BNPL users reported a positive impact on their credit scores.

A concrete illustration of this is Samantha's case, who leveraged BNPL to purchase a new phone and made prompt payments, resulting in an enhanced credit score and increased credit accessibility.
  1. No Hidden Fees
The best benefit of BNPL is that there are no hidden fees at all. Unlike credit cards or traditional loans, BNPL providers do not charge customers hidden fees. Customers know exactly how much they will pay upfront, making it easier to budget their expenses. A survey by Finder shows that 51% of BNPL users said they chose the service because there were no hidden fees.
  1. Better Shopping Experience
BNPL revolutionizes the shopping experience by offering a smoother checkout process that eliminates the inconvenience of having to enter payment details every time. This enhanced experience leads to increased satisfaction and decreased stress while shopping, as demonstrated by Accenture's survey, which found that 55% of BNPL users cited the improved shopping experience as a primary reason for using the service.

You know, Emily's situation perfectly illustrates the advantage of using BNPL. She actually bought a beautiful dress for a special event using this payment option, and I have to tell you, the whole checkout process was such a breeze that it made her shopping experience so much more pleasant. This is how Emily enjoyed the benefits of BNPL.
  1. More Affordable Payments
A jaw dropping benefit of BNPL is that it offers more affordable payments.

Did you know that consumers frequently opt for BNPL (Buy Now, Pay Later) alternatives to reduce the cost of their purchases? By breaking down payments over a period of months, they can experience smaller payments and a more steady and manageable cash flow, which can be particularly beneficial if they have financial constraints or other obligations to consider. Moreover, using this payment option can aid them in better controlling their finances and avoiding unexpected large payments

Were you aware that numerous consumers utilize BNPL (Buy Now, Pay Later) options to decrease the expense of their purchases?

A recent PYMNTS poll found that 37% of BNPL consumers selected this payment option because it allows for more affordable installments. Tom was cash crunched to buy a new laptop. Hence, in order to make the payments far more manageable for him, he chose to use BNPL and stretch out the expense over six months.
  1. Higher Approval Rates
The ninth benefit of BNPL is that it offers higher approval rates. BNPL providers typically have higher approval rates than traditional loans or credit cards. This means that more customers can access the funds they need to make important purchases. According to a survey by TransUnion, 62% of BNPL users said they used the service because they were approved for credit when they couldn't get it elsewhere. This is how Lisa relished the benefits of BNPL for consumers. Lisa needed to purchase a new refrigerator but had been turned down for credit in the past. She used BNPL and was approved, allowing her to purchase the refrigerator she needed.
  1. Reward Programs
An unbelievable benefit of BNPL is that some providers offer reward programs. Customers can earn points or cashback for using BNPL, making it a more attractive option than traditional loans or credit cards. According to a survey by Finder, 31% of BNPL users said they used the service because of the rewards program.

Here's how Mike gained benefits of BNPL for consumers. Mike used BNPL to purchase a new phone and earned cash back as part of the reward program. He was happy to receive cashback for something he needed to purchase anyway.

BNPL offers many benefits to consumers. BNPL offers an array of benefits, including convenience, financial flexibility, interest-free or low-interest payments, budget management, credit score improvement, transparent fees, enhanced shopping experiences, affordable payments, high approval rates, and reward programs. With such advantages, it's no surprise that BNPL has gained widespread popularity among consumers worldwide.

Are you prepared to leverage the power of BNPL to optimize your B2B payments and expand your enterprise? Contact PayBetter now to learn more and get started.
 

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