Buy Now Pay Later payments are evolving and are on the rise.
Buy Now, Pay Later (BNPL) payments are the fastest-growing advanced payment method in the UK, growing twice as quickly as bank transfers and more than three times the rate of annual growth in digital wallets.
BNPL schemes are growing at 39 percent annually in the UK and set to double their market share by 2023. Convenience and the ease to make snap purchases are behind their popularity.
BNPL providers, such as Klarna, allow customers to pay later through interest-free instalments with few, if any, fees or interest charges for the customer. The concept is to not only make transactions affordable, but seamless. Retailers receive a full payment up-front, while the provider carries all the credit risk.
Klarna had seen revenues ‘surge’ since March 2020, with a 20% increase in UK retailers using its service. Klarna has announced that seven million people have used its services in the UK, twice as many as a year ago.
Businesses need to improve their business models to keep pace with their customers’ changing wants and needs. By adding the option of BNPL, retailers have seen order values rise by 60%, online and in-store conversion rates increase by 50%, and new customer acquisition rise by 30%.
Together, Klarna and Verifone have created a smoooth checkout experience in-store that both shoppers and retailers love.
Klarna's Pay Later gives your customers the confidence to shop, and pay in a way that suits them, without interest, fees or the need for credit application. Increasing customer purchasing power leading to higher average order values and basket sizes, whilst getting paid upfront and in full.
Find out more about Klarna in-store