With 100 billion in BNPL purchases in 2021, up from 24 billion in 2020 – Buy Now Pay Later (BNPL) models have become the poster child of the payments sector and one of the most popular payment methods for young consumers.
The global pandemic resulted in a spike in e-commerce growth and a not-so-pleasant decrease in disposable income. As a result, popularity for BNPL boomed and merchants and retailers are looking to adopt BNPL offers across multiple business lines. For consumers, it makes buying more accessible and for merchants, it opens up opportunities to sell more things, to more people.
Although other sectors benefit from the BNPL adoption, E-commerce retailers currently control the majority of usage. Retailers with BNPL APIs on their site are estimated to experience a 20-30% increase in conversion. The option to pay for an item over a period of time without hidden cost is an excellent motivation to purchase more and also free up cash for other expenses.
How FinTech APIs became the catalyst to BNPL adoption
It is easy to attribute the massive adoption of BNPL to COVID-19 and the resultant lockdown, cash crunch, and lifestyle changes. However, doing that alone is underestimating the role of API-based infrastructure offered by fintech providers to promote inclusiveness in the financial sector.
The ease of integration, scalability, and versatility of API models has made it very simple for BNPL providers to integrate BNPL functionality and even simpler for merchants to provide BNPL payment methods for their products and/or services all around the world.
Thanks to the development and modular nature of Fintech APIs, organizations can integrate and launch BNPL solutions in a matter of minutes, with minimal internal business disruption and without specialized development teams.
Fund your customers in real-time through one-time disposable or reusable payment cards enabling them to make purchases with ease without merchant tie-ups.
Building a BNPL platform?
Instantly enable shoppers to spend right away at merchants of your choice globally. Deliver unique BNPL experiences and maximize reach with SimpliFi’s card issuing APIs.