Birgit Listmann, head of Inbank’s Estonian partner channel, said that while the total volume of “buy now, pay later” transactions rose to 74, the number of contracts increased by 57%. According to Listmann, the increase in the number of customers could also be linked to the fact that people have tighter wallets and are looking for ways to make their purchases more flexibly and plan their expenses.
According to him, Inbank statistics show an extremely high conversion rate for the “buy now, pay later” solution: if the payment method is chosen, 97-98% of customers sign a contract already from the beginning of the payment process formalization. “Psychologically it is easier for the consumer to make a purchasing decision if he does not have to spend the entire amount at once,” he explained.
Record Black Friday
Listmann highlighted that the use of payment solutions became particularly active during the Black Friday campaigns. “Compared to November last year, the volume of ‘buy now, pay later’ payment solutions has increased by almost 90% this year,” she said. According to her explanation, the increase could also be due to consumers calculating the VAT increase for next year, before which more expensive products, such as electronics and household appliances, will be purchased.
According to Listmann, the number of merchants offering payment solutions has increased by a third. “This gives the merchant the opportunity to make the product more accessible to the customer and thus increase the number of products sold and the value of the cart. For example, when purchasing clothes from an online store, a consumer can order several items of clothing at home, try them on, send back the unsuitable items and then pay only for what they liked – otherwise, when shopping, it is like an advance, if the goods are not yet available, but the money is already registered in the account”, has explained.
He stressed that while it is a convenient solution for the consumer, it still comes with an obligation and every purchase decision must be carefully thought through. “Since the amounts of the “buy now, pay later” payment method are not very high – the average purchase fee is 437 euros – there are generally few customers with short-term payment delays and the percentage of debtors is even decreased by 20% compared to the previous year,” said the head of Inbank’s Estonian partner channel.
2023-12-22 09:33:45
the-use-of-buy-now-pay-later-solutions-has-seen-a-huge-increase