Deko, a retail finance and buy now, pay later (BNPL) platform, has partnered up with Aero Commerce to provide financing solutions at checkout for merchants.
BNPL services have been gaining momentum, empowering consumers to make purchases through greater flexibility—paying in installments versus paying the full cost of the product. According to Deko, this payment option is most popular among Millennials and Gen Zers. As merchants continue to grapple with inflation, offering multiple forms of payment such as BNPL can prove essential to tap into another form of revenue.
John Roberts, Deko’s Head of Strategic Partnerships, told Electronic Payments International that that partnership is “an exciting start. Deko’s embedded finance solutions enable partners to deliver a wide range of finance products, unlocking higher acceptance rates through just a single integration.”
The Rise of BNPL
Despite looming regulations to protect consumers who are financially vulnerable, BNPL has not lost its luster. Businesses continue to view the adoption of BNPL products and services as a highly lucrative and strategic move.
The worldwide BNPL market size was valued at $141.8 billion back in 2021, and it’s projected to grow by 33.3% between 2021 and 2026, according to data from Research and Markets.
More major online retailers in the U.S. have taken on BNPL as a form of payment at checkout such as Amazon, Walmart, and Saks Fifth Avenue. By adding another payment method at the point-of-sale, merchants are able to provides consumers with more options. And in the long run, it doesn’t matter to them what form of payment consumers choose, but rather that a sale has been made..
At a time when consumers are more cognizant of their shopping behaviors, and are watching how much they spend, BNPL is an option more are leaning towards.
“Consumers in the UK are going through a difficult time given the cost-of-living crisis,” said Ben Danner, Senior Analyst for Credit and Commercial at Javelin Strategy & Research. “The current market seems good for vendors right now as consumers tend to use more credit products when times get tough and will appreciate having the flexibility and choice of spreading out their payments.”
