Black Friday 2021 witnesses rise in Buy Now Pay Later financing
By Leandra Monteiro
Today being Black Friday, retailers have deployed different tools to help shoppers purchase the items on their Wishlist. A key financing option many are looking forward to this year is Buy Now and Pay Later. This method of financing allows you to pay for your purchases in instalments or over time often with no interest or no fees.
IBS Intelligence spoke to James Bradley, Head of Business Development for DivideBuy to find out the advantages of using the Buy Now Pay Later financing option.
What has led to the rise of BNPL?
I think one of the biggest drivers is definitely the increase in awareness of the factors surrounding credit and a heightened focus on financial responsibility. Consumers of all age groups are more informed about the different types of credit available. The huge acceleration we’ve seen in the payments space over the pandemic, coupled with the spike in ecommerce due to the closure of brick & mortar retail outlets, has all pushed elements such as POS Finance to the front of mind for many shoppers.
Additionally, the economic impact from the pandemic has led to many consumers reassessing how they manage their finances. Customers are increasingly looking for alternatives to traditional revolving credit that allow them to plan their financial future more effectively – this is what BNPL offers.
Why is it such a lucrative offer during Black Friday?
One thing that BNPL services really excel at is allowing consumers to responsibly plan their purchases to fit their financial circumstances. The festive season can naturally be a more expensive time for all of us as we purchase gifts, celebrate with friends or prepare for family events, so having the ability to plan out interest free credit payments that spread the costs rather than taking an instant hit gives consumers the time and options to better prepare their finances over the coming months.
Reasons why BNPL sees a big sales growth on Black Friday
For retailers, offering BNPL services on Black Friday is a great way to boost your conversions and support your customers. The true value that BNPL services provide to consumers is choice and flexibility. The ability to choose and customise a payment option that fits an individual consumers financial circumstances is highly attractive to shoppers, especially on high-value, premium items that are often targeted by shoppers across Black Friday.
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