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Data for today’s episode is provided by Mercator Advisory Group’s Viewpoint: Buy Now, Pay Later: Sales or Cost Driver?
Six Factors Merchants Should Consider When Choosing a BNPL Vendor:
Merchants can better assess a prospective BNPL lender or compare their existing lender to others by considering the following factors and metrics:
- Availability of installment lending product options
- Ease of user interface
- Merchant fee structure
- Number of consumers in lender network/repeat customers
- Focused retail categories
- Added-value services
A confluence of factors in our COVID economy have come together to make Buy Now, Pay Later (BNPL) installment options attractive for consumers. Merchants, of course, are drawn to anything that resonates with shoppers and has the potential to provide a competitive advantage and corresponding sales lift. The challenge for merchants lies in selecting the right BNPL partner that fits well with their products, technology, and shopper demographic while implementing BNPL in a way that drives new sales rather than simply increasing the cost of sales.