« Buy Now, Pay Later » : Une tendance qui se confirme

« Buy Now, Pay Later » : a trend that is confirmed

Although customers have finally found their way back to physical stores, online sales sites continue to grow and try to build customer loyalty through targeted strategies. Illustration with "Buy Now, Pay Later" (BNPL) or how the mastery of digital technology responds to a demand for immediacy and brings an unprecedented flexibility.


An attractive system


This is one of the most significant accelerations in recent years. Already practiced for more than a decade, "Buy Now, Pay Later" is a totally dematerialized financing model that allows customers to pay for their purchases in installments, and all without risk: the merchant is paid on the spot and the risk of non-payment is assumed by the service provider.
A purchasing process that allows brands to respond to a new demand in the area of customer experience and relationships (generations Y and Z are very sensitive to this).

This simplicity and immediacy are undeniably added values for customers, but also for brands and platforms. Indeed, offering "omnichannel" solutions has become vital.
And, if the last link in the chain is payment, it accompanies and adapts today to all contexts and situations. The BNPL, but also all the new formats that result from it or that are linked to it, put forward a global vision of payment optimization. Reducing checkout time, better management of online checkout, analysis and use of data... All these new uses are profoundly transforming the payment ecosystem and responding to a demand for immediacy while guaranteeing the security of transactions. One of the leaders in the Buy Now Pay Later sector is the Swedish company Klarna (© photo), now valued at 46 billion dollars, but there are also financial giants such as J.P. Morgan and American ExpressApple would even consider entering this segment.

This is a fine example of how digital technology and data management can deliver a seamless, fast and secure split payment experience. The French brand Zadig et Voltaire has seen its remote sales accelerate by equipping all its stores with the Pay by Link solution. An integration of a customizable payment system, always more optimized and allowing a purchase in store via a payment link.
The result? Preserved sales and a unique customer loyalty.

Some limitations?


If these adaptations can sometimes be frightening (security of information, risk of indebtedness), all the players nevertheless assure that the data is ultra secure and the system is skilfully managed. Although this type of financial service is generally not subject to consumer credit laws, controls are carried out and these will become stricter in the coming years in order to achieve strict and transparent regulation.


A model for the future


As Thibaut de La Rivière, director of Sup de Luxe, points out:
"This new payment service is part of a desire for permanent adaptation on the part of brands and platforms and this, thanks to the power of data. A future-oriented strategy that will continue to mutate and develop".

Indeed, this formula is very attractive. For most of the market players, the increases are spectacular: up to +48% increase in sales for some. According to Kaleido Intelligence, a trend analysis and competitive intelligence service, the value of this type of transaction is expected to rise from $353 billion in 2019 to $680 billion in 2025 worldwide. An exponential growth due to the health crisis and reinforced by a consumption model in constant search of speed.

To be considered, therefore, as one of the major market trends...