Retailers are increasingly championing buy now, pay later (BNPL) plans, making them more available across various merchant sectors. A recent PYMNTS Intelligence report, developed in collaboration with Splitit, surveyed 100 merchants in roles such as accounts receivable, consumer billing and collections, and finance. It found that 85% of these merchants noticed a rise in BNPL usage during online checkouts over the past year. Despite this, only 25% of merchants expressed a strong preference for customers using BNPL. Instead, 38% preferred installment plans linked to general-purpose credit cards, and 34% favored customers arranging payment plans with their banks post-purchase. Retailers are more open to BNPL than merchants in industries like healthcare and restaurants, who rarely prefer this payment method. Consumer interest in BNPL is high, especially among Generation Z and millennials, with half of them using BNPL at least once in the past year and 79% reporting high satisfaction. Convenience, financial security, and expanded purchasing capabilities are the primary motivations for BNPL usage according to related reports.
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