The Most Popular BNPL Services

Key Takeaways

• Customers most often purchase electronics using postpaid systems (31%).
• In second place are clothing and footwear (28%).
• The third place is shared by accessories and household appliances (24%).
• Klarna is used by 150 million active customers.
• Quadpay allows you to make purchases from $350 to $1000, payable in installments over 3 months.

Rising inflation and changing prices for everyday goods are forcing consumers to reconsider payment options for online purchases. “Buy Now Pay Later” is one of the methods of transferring funds, which allows you to divide the cost of the goods into several parts.

In this article, you will learn about the features of BNPL services that you can use in conjunction with the Rates.fm to improve your online shopping experience.

What Are BNPL Services?

BNPL services make it possible to pay for purchases in an online store in installments without interest. In this case, the user receives the goods immediately after placing an order.

According to Forbes statistics, consumers aged 18 to 24 rely the most on BNPL services: four out of five users (80%) have increased their spending.

Customers most often purchase electronics using postpaid systems (31%). In second place are clothing and footwear (28%). The third place is shared by accessories and household appliances (24%). 70% of those users do so because of rising prices. 

According to the survey, 38% of people use them to break up purchases into manageable payments, 33% like to know about full payment in advance and not worry about interest charges. And 32% understand that thanks to the service they can make purchases that otherwise dont fit into their budget.

At the same time, according to Juniper Research forecasts, the number of users of BNPL worldwide will exceed 900 million by 2027. An increase of 157% will be driven by the expected economic downturn, which will increase demand for low-cost credit solutions.

How BNPL Services Work

BNPL services pay for customers in the store, and the customers then repay them. When using the installment payment system, the buyer:

• places an order in the online store;
• selects the appropriate payment method;
• makes the first payment;
• repays the remaining amount at certain intervals in equal installments.

Many debit payments for goods from the buyer’s card automatically, so the user does not need to log into the online store every time and repay the debt.

Providers earn from commissions from partner stores, from fees from customers who want to extend the payment period, and from fines in case of late payments. If the user does not pay the due amount on time, the work charges a fine, and later may turn to collectors or go to court.

If the buyer is not satisfied with the product, then it can be returned under the same conditions as if he placed the order with his own money. Such facilities are especially in demand by users who use new payment methods, including Bitcoin, Binance Coin, and Ethereum cryptocurrencies.

Popular International BNPL Services

Let’s look at several popular international services that provide payment in installments.

Klarna

An international BNPL service, Klarna, is used by 150 million active customers. It allows you to pay for goods in 4 equal installments without interest every two weeks. Klarna partners: Asos, Shopify, Stripe, Adobe, etc.

Orders are placed through the website or mobile platform software. The user needs to decide on a store, select products, create a virtual card, and make the first payment through it. The platform is attractive to clients with bonuses.

It has a profitable loyalty program and regularly offers discounts. Entering the marketplace can help a wide audience learn about your product.

Affirm

An American provider with 12.7 million customers. Affirm makes it possible to purchase goods with payment in installments without interest. One of its main advantages is that the buyer can choose the return period.

Interaction with Affirm occurs through the website or mobile software. A virtual card is pre-issued, through which the payment is made. There are 2 payment options available: 4 times every 2 weeks or once a month.

The platform partners with dozens of stores that offer clothing, electronics, home appliances, and other goods, such as Walmart.

Zip (QuadPay)

The next entry is an Australian fintech that allows you to make purchases from $350 to $1000, payable in installments over 3 months. 

If desired, the consumer of Zip (QuadPay) can create a separate account for larger purchases. The company cooperates with hundreds of stores, including eBay, Apple, and many others.

To use the platform, you must register on its official website. You can pay once a week, every two weeks, or monthly.

Sezzle

Sezzle is an American BNPL. It allows you to purchase goods and pay for the order in installments on the website or in the application. When using the latter, exclusive discounts are provided. Registration required. 

No interest or commission is charged. The order can be divided into 4 payments and paid within 6 weeks. Sezzle has about 47,000 partner stores, including Shopify, WooCommerce, Wix, and others.

Afterpay

Another Australian fintech company with over 14 million users. Using the payment in installments from this service, you can order a wide range of goods: clothing, car accessories, children’s products, and even food.

The buyer registers on the Afterpay resource or in the application, selects a store, adds products, and places an order. You can pay in 4 equal installments. The balance must be repaid within 6 weeks.

The limit on the cost of goods starts at approximately $600 and gradually increases only with timely payments.

There are other alternatives: Splitit, Uplift, Sunbit, Laybuy, and Paidy. You should not be afraid of such alternatives, since they are as convenient and safe as using familiar ones Allstate, Citigroup Inc, and JPMorgan Chase.

Final Thoughts

BNPL services make expensive goods more accessible to a wider audience. For businesses, They increase purchase conversions.

We recommend using the services of the Rates.fm service when shopping online, which provides up-to-date data on currency exchange rates in Ukrainian financial institutions. It is available in any city in the world, including the global financial centers of New York and Chicago in the USA.

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