What is BNPL Market Research?
The Buy Now Pay Later option is a type of short-term debt financing. It allows consumers to buy a good or service and make the payment in the future. The payment agreement can be through monthly installments (which may be interest-free). It can also be paid on finance or after a set period.
Why is it Important?
As a credit option, Buy Now Pay Later was not always very popular. But as the world of credit emerged, businesses started to use this payment option. There are many reasons why this is important today.
First, BNPL enables businesses to offer a flexible payment option to their customers. Consumers may prefer to buy a good or service if they can pay in installments rather than the total price. Also, it is a very convenient and disciplined way for consumers to make purchases.
Moreover, when qualifying for BNPL, the consumer’s creditworthiness has little to no significance. Thus, there would be no credit check for previous purchases. Also, it has little to no impact on the consumer’s credit score.
Key job titles
Some pertinent professions should consider the Buy Now Pay later payment option. This option would be beneficial when doing business. For instance, these roles include:
- The entertainment industry
- The Healthcare sector
- Ecommerce businesses
- Travel agencies
- Home improvement businesses
- Retail companies
These areas are perfect for the Buy ow pay later payment option. They sell big-ticket items, and so consumers would appreciate it if they could buy now and then pay later. In this way, companies can develop relationships with customers and hence, brand loyalty.
Affirm, Sunbit, Klarna, Nelo, Simpli are a few examples of Buy Now Pay Later providers worldwide.
Why Businesses Need the Buy Now Pay Later (BNPL) Option
As the world is growing, businesses need to keep in tune with emerging developments. Buy Now Pay Later has many benefits for companies. For example:
- Buy now pay later increases sales in your business entity. Often, persons are ready and eager to buy a good or service, but their pockets don’t allow them to. With BNPL, your business can transform regular visiting customers into paying customers.
- BNPL gives customers a preferred, flexible, and affordable financing solution. This model may also develop trust between business and customer. In comparison to other types of credit, such as credit cards, BNPL is doable for the average consumer. It also charges fewer fees to consumers. According to research, this type of payment is cheaper in the long run. It can be an essential learning tool for the average person.
- BNPL is an excellent tool for attracting new customers. These people don’t want to pay the total amount of money for the product right away. And some people would like to buy your goods but cannot afford to pay the full price right away.
Key Success Factors
How will my business make a profit? How will my business remain competitive? Both are great questions!
With Buy Now Pay Later, you, the merchant, will charge a fixed fee on every transaction made. You will also earn a fixed percentage of the sale. Also, you can set a price for using the business’s platform.
This payment option will expose you to a great pool of consumers. It will work wonders for your growing organization. You may ask, is it worth incorporating? It all depends on the route you would like to take for your company to please your customers.
About Buy Now Pay Later (BNPL) Market Research
Are you having thoughts about adding the Buy Now Pay Later payment option to your business? SIS International offers Quantitative, Qualitative, and Strategy Research using Interviews, Surveys, and Focus Groups. We work with both startups and other companies, and we can also help you add BNPL to your business.