The payment system is an ever-evolving dynamic. With a varied number of payment methods around the corner, BNPL, i.e., Buy now, pay later, is under scrutiny these days. BNPL has two dimensions. First is the way the alternative payment method meets consumers’ needs. The second is how well this benefits the merchants themselves.
Experts believe that BNPL will find huge popularity in Europe, the Middle East, and Africa. The payment system can be a big relief to the younger generation. This is because younger consumers usually do not have access to traditional financial services products.
These days the market is mostly on online platforms. The biggest weakness of any online shopper is their convenience and comfort. They want convenient and smooth payment methods. So much so that the payment process becomes almost negligible.
BNPL fits all these needs of a shopper. It delivers online credit in real time. The application process is very easy and gets completed at the time of checkout. In this way, customers do not take the trouble of worrying about money.
This is the reason BNPL saw massive growth. Predictions say BNPL transactions will soar as high as $800 billion in just a decade. Availability is also a factor that facilitates growth.
BNPL proves to be a blessing for consumers who do not have credit cards. Consumers who do a lot of online shopping but do not have credit cards are leveraging. This system enables users to monitor their expenses and maintains a transparency level.
The best indicator of the growth of the BNPL payment method is repeat customers. The consumers are willing to offer repeat businesses to the merchant offering solutions.
The service is very close to credit cards. Although the regulations differ. Experts raise the concern of developing more security and regulations around the method.