The rise of Buy Now, Pay Later (BNPL) payment options is reshaping the landscape for subscription merchants, particularly appealing to millennials who are increasingly leaning towards flexible payment solutions. A recent PYMNTS Intelligence report highlights that 16% of U.S. consumers are moving away from traditional payment methods in favor of BNPL, with a staggering 39% of millennials utilizing these services in the past year. This shift not only indicates a growing preference for BNPL but also reflects a significant 28% year-over-year increase in gross merchandise volume for BNPL transactions. Subscription-based businesses that integrate BNPL into their payment options stand to benefit immensely by enhancing revenue streams and fostering long-term customer loyalty. By transforming casual buyers into dedicated subscribers, merchants can capitalize on the growing trend of flexible payments, ultimately leading to a more sustainable and profitable business model.
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