Buy now, pay later electronics, which allow customers to pay in interest-free instalments, continue to rise in popularity as individuals are searching for alternative financing methods, a trend compounded by the pandemic of coronavirus. And increased competition among financial services companies comes with the swelling market.
Buy now and pay later industry
To give customers flexible payment options for their transactions, the BNPL industry has modernised layaway and instalment payments. BNPL solutions are applied to individual purchases relative to credit cards designed to be used repeatedly, appealing to customers who choose to make less of a financial commitment, even on lower ticket items.
Types of buy now and pay later
Direct Suppliers
Direct providers are at the forefront of the growth of BNPL solutions in the US and are ideally placed to benefit from the advancement of the industry. At point-of-sale (POS), they sell BNPL goods and are the companies most responsible for the growing profile of the industry. Examples from businesses include:
Affirm
Afterpay
Klarna
Retroactive providers
Retroactive providers offer financing options consumers can use for all purchases made on their credit card after the fact. These financing providers, largely issuers, offer flexible payment options after purchases have been made.
Company examples include:
American Express
Chase
Companies & Providers of BNPL
Fintechs and large financial firms both battle for market share, here are some of the top buy now and pay later electronics companies now pay:
Affirm
Afterpay
Alliance Data
American Express
Buy Now Pay Later Study of Industry
The economic effect of the coronavirus pandemic is driving millions of customers towards digital finance, and there are already signs that some businesses will outperform others and gain more market share. If e-commerce increases, so will the needs of consumers.
To give customers flexible payment options for their transactions, the BNPL industry has modernised layaway and instalment payments. BNPL solutions are applied to individual purchases, appealing to customers who want to make less of a financial commitment, even on lower ticket items, relative to credit cards designed to be used repeatedly.