In the world of digital transactions, everyone is familiar with debit cards, credit cards, Google Pay etc. Lately, there has been a new phenomenal concept that has evolved called ‘buy now, pay later’, it is also known as BNPL. Some may consider it as the newly evolved version of credit cards, yet it has a uniqueness of its own. It is a kind of short term financing wherein it allows its customers to make transactions and pay for them in future and it is often interest-free. This concept is popular amongst online shoppers these days.
Driven by growing e-commerce and consumer demand, newer and more convenient payment methods are emerging, Buy Now Pay Later (BNPL) being one of them. Industry experts believe BNPL’s share in the overall payment ecosystem will grow from 3% in 2020 to around 9% by 2024. That’s 200% growth in just five years!
Also, consumers in India are becoming more familiar with the concept of Buy Now, Pay Later and adopting it, considering the ease it offers. What is new is that e-commerce businesses are starting to realise the power of BNPL as it enables them to increase sales. And that’s where Sezzle’s Buy Now Pay Later solution comes in.
40K+ stores globally and 750+ in India are already benefiting, and Sezzle is continuously empowering both shoppers and retailers.
“Millennials are adopting the Buy Now, Pay Later option by choice. They like the flexibility of buying online in a safe, secure, and hassle-free manner. All these with an ability to checkout swiftly from their favourite brands, with no hidden cost and zero interest.” – Vandhana Parkavi Valaguru, Country Head, Sezzle India.
Sezzle is revolutionising the online shopping experience by offering “Buy Now, Pay Later” option to consumers. The company offers payment plans to shoppers with transparent and affordable instalments, i.e., splitting each purchase into 4 easy payments spread over 6 weeks at 0% interest.
“As a top-rated BNPL company, we aim at providing financial freedom to our shoppers for their growing demand. And meanwhile, making it effortless for our merchants to offer seamless online shopping experiences that foster trust, transparency, and accountability.” -Sankaran Kaliappan, CTO, Sezzle India.
Sezzle offers a more streamlined experience for both merchants and their shoppers. Rather than worrying about getting the perfect item and paying it in one lump sum, Sezzle reduces the stress by enabling shoppers to pay for their purchase in 4 convenient instalments. Customers are clearly loving this seamless and flexible financing option. Plus, the merchants can also leverage the BNPL payment method to grow their business as it helps them reduce card abandonment, increase average order value, prepaid order, and ultimately sales.
With millennials continuing to attain strong purchasing power and demanding more transparency and safety when purchasing online, Sezzle is both empowering them and shaping the future of payments.The novel coronavirus pandemic brought in a fundamental shift in the way customers interact with businesses. As restrictions were imposed, people adapted to the digital medium for every necessary thing they required. From clothing to groceries everything was purchased online, which in turn kindled the growth of Buy Now, Pay Later amongst the consumer segment.
The Global Payments report by Worldpay from FIS has anticipated BNPL to be the quickest developing online business instalment technique in India developing from 3 per cent in 2020 to 9 percent of the total e-commerce market share by 2024. The end of interest charges by most suppliers of this revolving credit facility for deferred payments of dues within the time duration of the payment cycle is a differentiator.
The concept and policies for the BNPL option vary from company to company, yet the basic outline operates on the following rules:
- One can purchase from the participating retailer and then choose to buy now, pay later at the checkout gateway.
- If it is approved, one can make a down payment of a small amount of the overall purchased amount.
- After which one can pay off the remaining amount in a series of interest-free instalments.
- The remaining amount can be paid back in various ways, including by debit and credit cards.
The BNPL services come with an edge over. The first and foremost advantage of the BNPL service is that it provides hassle-free access to micro-credit lines for customer purchases. These provisions are beneficial for a lot of customers, as they can manage their expenditure well and it gives them the liberty to shop according to their needs and pay back the fund later in a few days.
In addition to this, the policy of no interest charges on the outstanding dues has proven to be a trump card in times of the pandemic. Lastly, as more and more people are adapting to this new payment methodology, the BNPL services are expanding themselves and getting more and more partnerships to effectively popularise this new way of payment.