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Boost Your Business with Buy Now, Pay Later: Insights from Stripe

Boost Your Business with Buy Now, Pay Later: Insights from Stripe

Stripe's experiment on Buy Now, Pay Later (BNPL) options reveals significant benefits for businesses in terms of new sales, increased revenue, and improved conversion rates. Despite initial concerns about checkout friction and card volume cannibalization, the study found that more than two-thirds of BNPL transactions represented net-new sales. This means that customers completed these purchases only because a BNPL option was available. The experiment, which involved over 150,000 global payment sessions, showed a 14% increase in revenue for businesses offering BNPL options, driven by higher conversion rates and larger average order values. This increase was observed across various industries and transaction sizes, not just high-value goods. For example, Mixtiles, a B2C company, saw significant revenue growth after integrating BNPL methods into their checkout flow based on Stripe's findings. Stripe's Optimized Checkout Suite allows businesses to easily enable and manage BNPL options and other payment methods, providing a seamless experience for both merchants and customers.

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