An explanation of how those payments break down, listed beneath the price in the “Your Bag” section.A top-of-page banner urging shoppers to “pay in 3”.The first page of the checkout process features no fewer than three references to Klarna: Klarna becomes even more prominent once you’ve added-to-bag. Arrive on a product page and you’ll see the Klarna proposition displayed just below the price tag: break down your purchase into three payments, with no fees. That might explain why the company has integrated BNPL provider Klarna so prominently into its user journey. Perhaps, as a result, its customers skew older, with data from Facebook Audience Insights revealing less than 6.5 percent of its audience is aged 18-24. Now let’s take a look at five brands that have successfully integrated these buy now, pay later examples into their checkout process.Ĭharlotte Tilbury is a high-end makeup brand, with prices to match.

Indeed, McKinsey’s research found that BNPL solutions: According to Finder, three of the six main reasons shoppers use buy now, pay later services are directly related to deferring payments:Īs you’d expect, the upside for retailers can be even greater.

But it’s also commonly used to pay for big-ticket items like electronics, furniture, appliances, and housewares. Unsurprisingly, buy now, pay later is most popular among younger audiences, with Finder discovering 54 percent of Millennials and 50 percent of Gen Zers have used it:įigures from C+R Research show clothing has been the most popular type of BNPL purchase during COVID-19. That number had surged to more than half by March 2021, an increase of 48 percent in less than a year. In July 2020, The Ascent found that over one-third of American adults had used BNPL. Buy now, pay later (BNPL) solutions aren’t exactly a “new thing”.īut against the backdrop of coronavirus, with brands striving to encourage spending and consumers looking to offset payments, they’ve become extremely relevant.Īccording to McKinsey, credit originating at point of sale (or “BNPL credit”) represented only seven percent of unsecured lending balances in the US in 2019.īy 2023, that figure is expected to reach 13-15 percent, making it the only form of unsecured lending to see high double-digit growth during the pandemic.Ĭonsumers are becoming increasingly aware of buy now, pay later services.

Buy now pay later websites