In a time of extreme uncertainty and post-pandemic craze, many industries, businesses and services are in need of ways to remain flexible and relevant for their consumers.
Because of this, businesses and customers alike are finding comfort and preference in alternative forms of ecommerce, one of the most relevant being "buy now, pay later." or BNPL.
What Is BNPL?
BNPL is a relatively new form of ecommerce that is an alternative to credit, debit, or cash that allows users to budget their money and make payments more freely. Services such as dental and veterinary care are some of the many industries that are utilizing this type of technology to ensure that their consumers have the most financial freedom and reliability when paying their bills.
Related Article: The Customer Experience Secret Amazon Doesn't Want You to Know About
Worried Consumers, Responsive Brands
Studies show that two in three Americans reported being more interested in BNPL in 2022 than they were prior to the pandemic, and the vast majority report feeling worried about making payments. Nearly 75% of consumers between the ages of 43 and 57 are worried about healthcare costs, while nearly 66% of pet owners are worried about affording the care that their pets need.
Fortunately, many providers of these services are turning to BNPL technology to revolutionize their customer’s ecommerce experience by allowing flexibility that has never before been as accessible. In fact, even users who consider themselves successful at budgeting have been found to be able to benefit from this type of alternative payment method.
How BNPL Can Alleviate Financial Stress
Nearly 70% of people report feeling successful at following a budget. However, pet owners, for example, have been found to use BNPL as an alternative method of ecommerce, despite 78% of them feeling confident about their financial status.
In addition, there are many benefits both in the healthcare and pet care sector that BNPL offers to consumers, such as payment flexibility, avoiding credit card fees and interest, and fair and fixed rates on most services. In fact, BNPL can help to alleviate many of the current problems that exist within these highly necessary industries.
For instance, healthcare bills take time to pay off, and studies show that only 32% of healthcare costs are immediately paid off in full by the customer, and nearly half of pet owners take at least one month to pay off a visit to the veterinarian.
Related Article: Digital Commerce Tech Leaders Launch Commerce Experience Collective
Customizing the Consumer's Experience
BNPL has not only revolutionized the way that consumers spend and manage their money, but also has changed the game for businesses and services to be able to customize their customer’s experience during a time that personal attention and care is most needed. The pandemic has acted as a catalyst for people across the United States to be interested in buy now, pay later technology, with millennials being the generation whose interest has increased the most since its conception.
Overall, BNPL has grown in popularity, to a level at which the majority of Americans who utilize dental and veterinary care would use BNPL over traditional payment methods, and businesses across the country can benefit from it through customization of the consumer experience.