Stripe analyzed 150,000 payment sessions to understand the impact of Buy Now, Pay Later (BNPL) on businesses. The study revealed that businesses offering BNPL saw a 14% increase in revenue through higher conversion rates and increased average order values. Contrary to the belief that BNPL only benefits expensive purchases, the study found that conversions increased across all product price ranges. Additionally, 66% of BNPL transactions were net new, meaning they came from customers who hadn't previously bought from the merchant, indicating that BNPL can attract new customers. The research comes as the Consumer Financial Protection Bureau considers treating BNPL payments like credit card loans. Stripe, which processed $1 trillion in payments in 2023, aims to educate its customers on the benefits of BNPL, even though it does not offer its own BNPL products. The findings suggest that adopting BNPL can be a valuable strategy for businesses looking to boost sales and attract new customers.
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