What is Buy Now Pay Later (BNPL)?
Buy Now, Pay Later (BNPL) is a new online payment method that enables consumers to pay in (many times) interest-free installments has become increasingly common on e-commerce checkout pages. BNPL’s popularity is exploding with shoppers and especially Gen Z consumers (18 to 32-year-olds) are turning to it in droves. Merchants are responding to the desires of their youngest, most energetic customers, and, at the same time, often reducing shopping cart abandonment rates and increasing average order values with BNPL.
- Article | Capital One Forbids Use of Cards in ‘Buy Now Pay Later’ Transactions
- Article | Fraudsters Adapt Tactics for BNPL
- Article | BNPL Faces Fraud Surge in 2022, Says Report
- Article | BNPL Process and Fraud: What Merchants Can Expect
- Article | Apple to Launch BNPL Offering
- Article | Mastercard Expands BNPL Offering
- Article | BNPL Spending up 203% Since 2020; Adding Billions in Incremental Sales, Says Report
Capital One Forbids Use of Cards in ‘Buy Now Pay Later’ Transactions
Buy Now Pay Later (BNPL), an increasingly popular online payment type that enables merchants to offer installment payments or instant credit at the point-of-sale, ran into a possible hurdle recently. According to a Reuters report, credit-card issuer Capital One said it will not allow its account holders to use their credit cards for BNPL transactions.
Fraudsters Adapt Tactics for BNPLBuy Now, Pay Later (BNPL) options have become popular both on e-commerce checkout pages and with shoppers. While the exact process for consumers utilizing these payment methods vary by provider, the appeal of paying for purchases across a few fixed payments, often without interest, is especially appealing to younger millennials and “Generation Z” consumers, ages 18-32. The appeal for merchants is a combination of expanding their customer base, reducing shopping cart abandonment rates, and increasing average order values (AOV).
Apple to Launch BNPL Offering
Apple intends to compete with companies like Affirm, Klarna, PayPal, Afterpay and others by launching a “buy now, pay later” option enabling consumers to pay for purchases in installments. According to Bloomberg News, Apple has partnered with Goldman Sachs on the service, which will be called “Apple Pay Later.”
Mastercard Expands BNPL Offering
Buy Now, Pay Later (BNPL) continues to emerge as an online payment option consumers are increasingly demanding. This week, Mastercard announced that it is expanding its BNPL program by adding partners that will enable more people globally to leverage BNPL to pay online using interest-free installments.
BNPL Spending up 203% Since 2020; Adding Billions in Incremental Sales, Says Report
One of the changes hastened by the surge in e-commerce that came with pandemic lockdowns was the mainstream adoption of “Buy Now, Pay Later” (BNPL) as an online payment option. And now, anecdotal accounts of the emergence of the payment method as a force in e-commerce are joined by some evidence offered by a major player in the space.