The retail landscape is constantly changing and evolving, with new technologies and trends emerging for retailers to embrace. When it comes to payment options for consumers, the newest trend is to buy now, pay later (BNPL) services where the consumer can purchase an item now and make payments later, typically in several installments and without interest.
A recent NerdWallet survey found that one in five holiday shoppers already used or intended to use BNPL to purchase gifts and other holiday goods. Of that 20 percent, over 22 percent were Gen Zers. Retailers can set up their own BNPL systems or utilize companies that offer the service, such as Sezzle, Affirm and Afterpay.
Especially when it comes to online shopping, BNPL can secure a sale and prevent consumers from abandoning their carts by giving consumers options and encouraging them to purchase even if they don’t have the money right then. BNPL also comes with risks to the retailer, with consumers missing payments. In the same NerdWallet survey, 43 percent of Gen Z respondents said they missed at least one BNPL payment.
Along with buy now, pay later, contactless commerce, and specifically contactless payment options, continue to trend in retail. To learn more about how to integrate contactless commerce features into your operation, click here, and for the top four contactless commerce trends for 2022, click here.