Retailer Benefits for BNPL Services Include:
Consumer Benefits for BNPL Services Include:
Downsides to BNPL Services Include:
Pay Now Buy Later (BNPL) services entered the online shopping domain more than a decade ago.
Yet, 2020 brought an exponential growth to the BNPL category with a +244% increase in web traffic YoY.
Female gen Z and millennials aged between 18-34 are prime users of BNPL apps.
PayBright and Afterpay, the main two players in the Canadian market, make shopping in installments possible in the over 7,200 online stores.
PayBright offers the ability to pay in four bi-weekly instalments with no interest or fees.
Afterpay follows the same process as PayBright, with 4 bi-weekly payments.
Afterpay was the first BNPL service to take its proposition offline—consumers in New Zealand, Australia and the US (since Nov’ 20) can benefit from the BNPL model when buying products in selected brick and mortar stores.
“During the first quarter, we also launched Afterpay on our U.S. shopping site. Sales through the service have already grown very nicely and carry a notably higher average order value. We will continue to invest in customer centric capabilities, which we believe will become even more relevant in a post-COVID world. As we reopen stores, we are very closely following state and local guidelines and have opened 556 locations to-date.”
“I think this is a new dawn for Canadians to make big purchases without paying the 20% credit card interest.” Joshua Y.