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Education

Boost profit, increase For more information on buy now, pay later developments, see the

sales with BNPL following articles from The Green Sheet archives:

• "Buy now, pay later is in the CFPB's crosshairs," by David Haber,
By Sherrie Bryant Global Legal Law Firm, Feb. 14, 2022, issue 22:02:01
VyaPay
• "Making BNPL credit reporting work," by Srii Srinivasan,
etailers have long understood the value of offer- Chargeback Gurus, Feb. 28, 2022, issue 22:02:02
ing instant options at checkout, both in stores
and online, by accepting digital wallets, local • "BNPL: No time like now," by Dale S. Laszig, DSL Direct LLC and The
R currencies, loyalty points, touchless payment Green Sheet Inc., March 28, 2022, issue 22:03:02.
methods or installment plans at point of purchase. Over
time, checkouts became more and more fluid in response
to consumers' nomadic, digital lifestyles. Consumers Full study results can be found at https://bit.ly/37u3Zl8.
embraced buy online, pick up in store (BOPIS), mobile in- Sustainable finance option
store checkouts on personal devices and sales associates'
POS tablets, curbside checkouts and order ahead. BNPL provides shoppers with immediate access to
products and services without paying the full value
All of these behaviors accelerated during the pandemic upfront and without added fees if payments are made on
by enabling shoppers to safely patronize their favorite time. This cost-effective alternative to traditional credit
stores and restaurants. Buy now, pay later (BNPL) grew methods gives consumers a budgeting tool, Accenture
exponentially during this period. researchers noted.
What is BNPL?
"As a result, the number of BNPL users in the US has grown
BNPL has been compared to layaway, installment plans by more than 300 percent per year since 2018, reaching 45
and other types of retail financing, but its pricing, risk million active users in 2021 who are spending more than
models, technology and customer experience are different. $20.8 billion," researchers wrote. "This is equivalent to 2.4
Most BNPL service providers pay merchants in full upon percent of US online retail and 12 percent of US online
purchase while allowing approved customers, who fashion retail. It is estimated that BNPL users in the US
agree to monthly payments with no added fees, to take will gain $1.6 billion in surplus value from using BNPL
immediate ownership of a product or service. services in 2021."
A solution to embed
Approvals are also immediate. Modern BNPL solutions are
powered by advanced algorithms, artificial intelligence Researchers also noted that continued growth of
and machine learning; deployments have been mostly ecommerce and digital payments is reflected by changing
seamless. consumer preferences, which increasingly favor interest-
Benefits for merchants free borrowing and budgeting features over traditional
credit options.
The Economic Impact of Buy Now, Pay Later in the US,
a September 2021 independent study by Accenture that BNPL works best as part of an end-to-end digital
was commissioned by BNPL provider Afterpay, cited commerce solution powered by integrated technologies.
the following benefits researchers attributed to BNPL Its advanced capabilities can complement your family of
deployments: solutions by driving instant approvals, recurring revenue
• Increase average ticket: Merchants offering BNPL and sustainable financing options at point of purchase.
at point of purchase saw a 17 percent bump in basket Your payment facilitator partner and payment gateway
sizes. provider can help you customize and embed a BNPL
• Increase sales revenue: Merchants implementing solution in your technology suite to make it a seamless
BNPL can increase annual sales revenue by enabling extension of your services and brand.
customers to purchase high-ticket items they might
not otherwise have been able to afford. Sherrie Bryant, director of marketing at payment solutions provider
• Attract new customers: Merchants who participated VyaPay, is a senior marketing executive with over two decades of experi-
in the study attracted nearly 13 percent more new ence. She has a track record of success in creating and leading effective
customers after implementing BNPL. marketing organizations with emphasis on channel management,
• Retain existing customers: Merchants on average partner relationship management, and business development activities
can save customers up to $459 million in credit card in the payment and POS space. She offers expertise in finding, building,
fees by offering the BNPL service, a guaranteed way and leveraging relationships that power revenue growth. Contact her at
to drive customer satisfaction. sherrie@vyapay.com.
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