Buy now, pay later (BNPL) is a growing trend in consumer payment preferences, particularly among millennials and Gen Z. While offering BNPL can increase sales and attract new customers, it comes with significant risks and costs for businesses. Merchants face higher fees for BNPL transactions, potentially affecting their bottom line. Additionally, BNPL can lead to more impulse purchases, resulting in increased returns and exchanges. Customer service complications may arise when BNPL providers are involved, potentially damaging a business's reputation if not managed properly. With the evolving regulations around BNPL, businesses must weigh the benefits against the financial and reputational risks before deciding to offer this payment option.
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