$Le paiement fractionné dans le secteur du sport$

Buy Now Pay Later: aspringboard toquality

09/10/2023

5mn

As the landscape of the retail trade and financial transactions continues to change, BNPL (By Now Pay Later) gives consumers the chance to pay for their purchases in instalments. It’s a great way for retailers to democratize access to high-end goods and services, while also boosting their sales.

The success of Buy Now Pay Later

In 2022, nearly 43% of European consumers used BNPL, a rise of 22 percentage points over the 2021 figure[1]. That success is partly due to its ease of use. With just a few clicks, consumers can choose to pay 30, 60 or 90 days after purchase. Depending on the price, their budget, and the options available from the seller, consumers can choose the number of instalments that suit them best.

What’s more, Buy Now Pay Later is an even more attractive solution during periods of higher inflation. With consumer prices rising 5.3% year-on-year (July 2023) in Europe, consumers are particularly budget-conscious and are tending to cut back on their spending. In times like these, BNPL becomes a really effective way of maintaining their purchasing power.

And consumers have certainly been won over: 78% of those who have used BNPL say they would switch retailer for one that offered this option.

[1] Étude européenne Kantar, « Évolution des usages de paiement en Europe en période d’inflation » – https://www.kantar.com/fr/inspirations/consommateurs-acheteurs-et-distributeurs/2023-evolutions-des-usages-de-paiement-en-europe-en-periode-d-inflation

A solution for better spending

BNPL reduces the pressure on people’s budgets by allowing them to defer payment, eliminating the need to pay a large sum in one go. Making payment easier can also play a key role in triggering a purchase, particularly when it comes to less affordable items, as consumers can opt for a more expensive, higher-quality product without having to wait. It’s not about buying more but buying better.

Take the case of Paul, who wants to buy an electric bike for his daily commute. Given his salary as a young graduate, it’s hard to imagine him making such a purchase. But what if he could own it right now, without going beyond his monthly budget? That’s where BNPL comes into its own. By paying in instalments, Paul can not only buy an electric bike, but he can also choose a higher quality model that’s more expensive but more sustainable.

Acquisition, conversion and loyalty: indicators boosted by BNPL

With BNPL, retailers not only see a sharp fall in the number of baskets being abandoned at checkouts, but are also able to attract new customers, especially for higher-priced products, both online and in-store.

Without doubt, it’s also a way of increasing the value of the average basket, as spreading payments makes it easier for consumers to be tempted either by a more expensive product or by additional purchases. The average increase in basket values experienced by merchants offering BNPL is 30% to 50%. Alltricks, a pure player in outdoor sports equipment and an Oney partner since 2012, has seen its average basket rise from €91 to €268, for example.

BNPL can also drive customer satisfaction and loyalty. By paying a higher price for a higher-quality item, consumers are likely to be more satisfied – thanks to the quality of the product.

For all these reasons, the BNPL payment experience is a very effective way of boosting your sales for the long term.