Buy Now, Pay Later (BNPL) programs have taken the finance world by storm, and for a good reason. These programs give consumers unrivaled access to financing for purchases of almost any size, and they do so with low-to-no interest and almost zero credit impact.
Naturally, this has sparked curiosity for merchants around the world looking to drive better revenue and conversion. Increasing the buying power of consumers will obviously make it easier for them to purchase more, and more often, but how much of an impact does it make? How good is the BNPL conversion rate? Is BNPL going to continue to be the dominant finance product that it is today?
Luckily, we have the numbers to answer these questions.
BNPL Conversion Rate Statistics
Flexible payment programs boost conversion in several ways. Not only do they show a clear increase in general sales conversion, but there are stats that show exactly why and how often they decide to do so.
- Businesses with BNPL programs see a 20-30% increase in conversion rate on average.
- 60% of online shoppers say they used a BNPL service to make one or more of their purchases last year.
- 61% of BNPL users say they’d rather use a service directly offered by a retailer than go through a third-party.
- 55% of BNPL users cite simplicity as the main reason that they chose to use the service.
- 64% of BNPL users say they have used it more since the beginning of the pandemic.
- 48% of BNPL users say they would not buy from a merchant that doesn’t offer the service.
BNPL makes shopping simpler and premium purchases more accessible. As a result, businesses can land conversion in situations that they normally wouldn’t.
BNPL Revenue Growth Statistics
Conversion isn’t the only metric that grows alongside a BNPL program. Revenues can also grow due to larger purchase values and purchases made that couldn’t be without the help of a BNPL program.
- Businesses with BNPL programs see a 30-50% increase in average ticket size.
- 45% of consumers said they used BNPL to make a purchase that they wouldn’t be able to afford otherwise.
- 36% of BNPL users use it once a month or more.
- 60% of users say they used BNPL to buy something unnecessary.
Repeat business and higher-value purchases allow BNPL to drive revenue.
BNPL Market Adoption Statistics
Generally, the market has already widely adopted BNPL and those who haven’t yet seem open to doing so in the future. There are many reasons for this and numbers to back them up.
- 62% of BNPL users think it could replace their credit cards.
- BNPL adoption growth was largest in the 18 to 24 (62% growth) and 55+ (98% growth) age groups between July 2020 and March 2021
- 53% of consumers who have never used BNPL say they're at least somewhat likely to use it within the next year.
- 48% of BNPL users say they used it for electronics purchases– the largest usage of any industry represented.
- 50% more consumers say they understand BNPL than last year.
- 48% more consumers used a BNPL service this year than last year.
The era of online shopping has undoubtedly helped this transition along, and it doesn’t show signs of slowing down anytime soon.
Jump Into the BNPL Game With Skeps
Skeps offers the only true end-to-end POS financing platform, which is the best possible way for merchants to begin offering flexible payment options to their customers. Business owners looking to leverage the BNPL conversion rates made available by our cutting-edge software can enjoy rapid implementation, one-click checkout for customers, the widest array of financing options at the POS to serve the most customers, and in-depth analytics to monitor the success of their program.