E-commerce merchants cannot overlook the benefits of Buy Now, Pay Later (BNPL) facilities and alternative credit solutions, but selecting the right BNPL partner is crucial, says Anine de Kock, Head of Partnerships at Peach Payments. With the South African e-commerce sector approaching R71 billion in sales and expected to account for 10% of total retail by 2025, BNPL facilities are becoming indispensable. BNPL provides consumers with access to necessary products without incurring high-interest payday loans, thereby driving sales for merchants. However, merchants must carefully evaluate potential BNPL partners based on their repayment terms, rates, and reputation. Repayment structures vary, and understanding who bears the risk and how funds are disbursed is essential. Costs associated with BNPL services must align with the merchant's pricing strategy to ensure sustainability. Additionally, the BNPL provider's reputation and alignment with the merchant's brand are vital considerations. Responsible credit extension by reputable BNPL partners can ensure ethical lending practices, making it a win-win for both consumers and merchants.
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