Shoppers across almost all age groups now use buy now, pay later (BNPL) for a wide range of purchases.
As consumer trust increases, the global BNPL market is forecast to grow by almost $450 billion between 2021 and 2026.1
This article looks at the types of consumers using BNPL, why enterprises should consider offering it, and how business leaders can integrate BNPL solutions into their global operations.
While BNPL is most popular among Millennials and Generation Z, Baby Boomers and Generation X are not far behind.2
A study by Billtrust surveyed more than 750 American Gen Z individuals between the ages of 18 to 25 and found that 26% of these consumers had used BNPL products in the previous three months. In addition, 74% of the Gen Z consumers say accepting new forms of digital payments improves their perception of a brand or retailer.3
The average amount another study found each generation spent over 90 days via BNPL is shown below4:
The same report highlighted Gen Z consumers are using BNPL for smaller, practical purchases, while consumers in the older Gen X and Baby Boomer categories are more likely to reserve BNPL for big-ticket items.
Learn more here about PayPal Buy Now, Pay Later options such as PayPal Pay in 4 and why retailers trust PayPal Pay Later to help them reach more customers, boost sales and loyalty, and adapt to changing consumer habits.
Offering Buy Now, Pay Later as a payment method can deliver enterprises many benefits. These include:
Learn more about BNPL benefits.
The way consumers use BNPL often correlates with their age group. Data from PYMNTS4 shows how BNPL use across generations can differ, and the purchase categories where BNPL use is either more or less concentrated.
As we can see, Gen Z is more likely to use BNPL for clothing and electronics purchases; this is also the case for both Millennial and Gen X consumers, although groceries and furniture are also popular BNPL purchases for these generations.
Discover how PayPal Pay in 4 and Pay Monthly installment solutions empower consumers and BNPL.
Enterprises may trust PayPal Pay Later options to help them reach new customers, boost conversion rates, drive higher AOV, and improve the overall customer experience with frictionless checkout processes.
Integration of these BNPL solutions from PayPal can provide merchants with a seamless checkout process with just a few lines of code. Dynamic messaging will then present the most relevant Pay Later option as customers browse, shop, and check out.
PayPal Pay Later’s speedy decisioning of applications is based on rich historical data and advanced risk modelling. Customers will know in seconds if their application is approved, streamlining the customer experience.
Reasons why enterprises trust PayPal for their BNPL integrations include:
Learn more about PayPal Pay Later.
PayPal Pay Later provides several key benefits to enterprises looking to integrate BNPL solutions into their check out. Merchants are paid upfront, meaning there is no additional risk to them when offering BNPL. Plus, if enterprises already use PayPal Checkout there is no additional cost as Pay in 4 and Pay Monthly are included.
Buy Now, Pay Later solutions from PayPal are quick and easy to integrate and are available with the single integration of PayPal Checkout. Accepting BNPL not only provides extra buying power for consumers, but also helps enterprises build brand loyalty by providing customers with their preferred payment methods and a seamless customer experience.
Learn more about how to accept PayPal Pay Later.
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