Buy Now Pay Later, or BNPL for short, is the world’s fastest growing payment method (Worldpay report – PDF), and is being widely adopted in a variety of industries from retail to education to cannabis. According to Research and Markets, BNPL payment in Canada is expected to grow by 63.5 per cent on an annual basis, and reach US$5.95-billion in 2022. With the rise of digital commerce and mobile penetration, BNPL providers are well-positioned versus other payment methods such as debit and credit cards (Juniper BNPL research).
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BNPL is a payment method, not a lifestyle brand
Contrary to the advertising from many other BNPL providers, we see BNPL as a payment method. It’s a choice alongside Visa, Mastercard, PayPal and others at the checkout. And using BNPL at the checkout should have the same or better experience during and post- payment. This means that you shouldn’t be subjected to lifestyle advertising just because of the payment method you used.
BNPL is still relatively unknown
Canadians could benefit from more knowledge of BNPL services, as 38 per cent of these respondents had not heard of BNPL prior to being surveyed. Consumers across all age demographics are using BNPL. Payments Canada research shows younger Canadians (18-34) are significantly more likely to be using BNPL now and in the next 12 months for purchasing in store or online than older Canadians (aged 55+). And Statista show the age group most interested in BNPL are 35-44yrs in Canada. This shows BNPL is poised to grow across several key age groups.
BNPL is a source of funds
Buy Now Pay Later (BNPL) is a source of funds, just like a card issuing bank or BNPL gift cards are sources of funds for your purchase. When you swipe your card at the terminal, you’re using the bank’s funds to pay. The payment is processed from you, the consumer, to the store via your bank and the store’s bank. Buy Now Pay Later (BNPL) is no different, extending its utility beyond traditional retail to include BNPL for B2B transactions. Gratify helps consumers, as well as businesses in B2B models, break purchases up into easier to afford installments, just as BNPL gift cards offer flexible payment options. This adaptation of BNPL for B2B scenarios facilitates smoother cash flow and budget management for businesses.
Instant decisioning and low friction are key here, and we have one of the fastest and most robust checkout processes in the industry. At Gratify, that source of funds, including BNPL for business, is available to consumers and businesses in good standing. We utilize sophisticated algorithms and data from four sources: external bureaus, device-level intelligence, the consumer’s spending behavior, and merchant-level data, to ensure a seamless BNPL experience for both individual consumers and business entities.
Most importantly, BNPL is restricted to consumers 18yrs+; the same restriction applied to using funds provided by a credit card.
Capitalising on consumer demand for digital payment methods with better cash flow and terms is critical. Offering BNPL can help turn more enquiries into sales, and provide a stop gap for those consumers that choose to buy then budget. As a payment method, BNPL is here to stay and has a long way to grow in Canada. Don’t miss out on the BNPL tidal wave in your business.
FAQs: BNPL Payment Method
Can you put a car on layaway?
Yes, you can put a car on layaway, although it’s not as common as layaway for smaller retail items. Layaway for a car typically involves making a series of payments to the dealership or seller over time until the full price is paid, at which point you can take possession of the car. This process can be particularly useful if you need time to pay for the vehicle without taking out a loan or if you want to avoid interest charges. However, the availability and terms of car layaway programs can vary significantly between dealerships and sellers, so it’s important to inquire directly with them for specific details.
Does Walmart take afterpay?
As of 2024, Walmart does not accept Afterpay as a payment option. They stopped accepting Afterpay in 2021. However, Walmart does offer various other “Buy Now, Pay Later” services, such as Affirm, QuadPay, PayPal Pay in 4, and Klarna, which customers can use for their purchases.
What is Buy Now Pay Later?
Buy Now, Pay Later (BNPL) is a financial service that offers consumers a convenient way to purchase items immediately and pay for them over time. This service typically divides the total purchase cost into multiple equal payments, with the first installment usually due at the time of checkout. The remaining payments are billed over a period, often to the consumer’s debit, credit card, or bank account, until the purchase is fully paid off.