Future retail sales will be dominated by what is known as “buy now, pay later” payment arrangements. Buy now, pay later; payment plans may be a convenient option for consumers looking for a more convenient method to pay for large-ticket products. The rise in retail pricing has prompted people to look for a convenient and flexible method of purchasing large-ticket goods.
Inflation may lead to an increase in credit card debt and interest payments. In recent years, buy-now-pay-later options have grown more prominent in the banking and retail sectors.
Online and in-store purchases may be made under a BNPL plan with a minimum and maximum selling price. Customers regularly pay, which might be weekly, biweekly, monthly, or even yearly. Aside from interest, the only other charges are those related to lateness.
Buying Now and Paying Later is a Common Practice.
Among the most popular buy-now, pay-later options, according to C+R Research’s poll of 2,005 online users in 2021, were Klarna and Zip Pay, among others. In addition to PayPal Holdings, Inc. (NASDAQ:PYPL).
More than 14 million companies provide goods and services on the internet (PayPal, 2017). An excellent example of this is the service Pay in 4BNPL (2017) provides. At Target, Best Buy, Tapestry, and more, you may use Pay in 4 BNPL to make purchases (2017). Many famous companies, including Coach, Uniqlo, and Bad Bath and Beyond, may be purchased with Pay in 4 BNPL (2017).
Rite Aid, Nordstrom, and Calvin Klein are just a handful of the retailers you may shop at. Amazon, Nordstrom, Calvin Klein, and more retailers may be purchased with Affirm (2017). In addition to Walmart and Target, the biggest retail brands globally, including Klarna, are available for product purchases (WMT).
If you want to purchase Abercrombie & Fitch and Saks Fifth Avenue items using Klarna, you may do so (2017). Best Buy, Apple (NASDAQ:AAPL), Nike (NKE), Reebok, and Adidas, among others, may be purchased via Zip.
Klarna, Afterpay, PayPal, and Zip are some of the most popular buys now and pay later service providers, according to a recent study. While Affirm lets customers keep their items for up to a year, Klarna, Afterpay, and Zip charge payment at the time of purchase.
For its purchase now, pay later arrangement, Zip does not collect late fees or negotiate interest rates. It is offered through BNPL, a prominent electronics and appliance retailer, and Best Buy. A 25% down payment is required, and the rest 75% must be paid in four installments over six weeks, all using the Best Buy app or on a desktop computer.
There aren’t any fees associated with checking out. As a consequence of late fines, which may vary from $5, $7, or $10, depending on the state in which you live, you are charged. There is no fee for interest. The plan is not available for purchase in-store.
Recent polls show that the desire to purchase now or pay later options is increasing among customers. Since its inception in 2013, Grand View Research has forecast that the worldwide buy-now-pay-later industry would reach $6.2 billion by the end of 2022.
The Fashion and Garment Sector Is the Most Popular.
As of May 3, Grand View Research predicted a 26 percent increase in sales from 2022 to 2030, with a compound annual growth rate of 5.4%.
BNPL’s U.S. market is predicted to rise by 24.3% a year from 2022 to 2030, reaching an estimated $1.4 billion in 2021, on May 3rd, according to a statement from the company. The survey predicts that the fashion and apparel business will develop quickly over the next several years.
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