BNPL, or "Buy Now, Pay Later," has surged in popularity, especially with millennials and Gen Z consumers, offering an alternative to traditional credit. Businesses are adopting BNPL to boost sales and attract a younger demographic, with reports of increased average order values and conversion rates. Yet, BNPL isn't without its downsides; higher fees compared to regular credit card transactions and the potential for increased returns can impact profit margins. Additionally, BNPL introduces a third party into customer transactions, which can complicate customer service and potentially harm a business's reputation if issues arise. With evolving regulations and consumer protection rules on the horizon, businesses must weigh the benefits against the risks and financial implications before integrating BNPL into their payment options.
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