Almost one in three Europeans use BNPL

The deferred payment market grew in 2018 – 2020 as much as four times and globally reached a value of $ 80 billion. According to forecasts, by 2025 it may be worth as much as USD 250 billion. In Europe, the trend buy now, pay later (BNPL) is growing rapidly – up to 60% of Europeans use it. One in four customers choose to store online based on the ability to defer payment. The growing popularity of BNPL makes more and more e-shops owners lean towards this solution – also in Poland.

BNPL – above all convenience

BNPL service allows to receive goods from the online store and pay for it later (usually by a month or two) – if we do not decide to return it. It does not involve with additional costs, nor the need to wait for a credit analysis. Unlike traditional credit cards, BNPL is a product completely digital. Its operation on mobile devices is convenient and intuitive.

In the vast majority of European Union countries, the deferred payment market is governed by regulations relating to consumer credit, which is a direct implementation of the Consumer Directive. In June 2021, a draft of a new regulation was announced, which is intended to empower consumers, among other things due to the ongoing digital transformation. In Poland the products buy now, pay later are offered mainly by the sector fintech or lendtech.

Benefits for consumers and retailers

In the United States, the BNPL option is used by already 60% of customers buying online. Although as much as 77% of Polish consumers declare knowledge of this solution, in 2021 it will be used by only one in four respondents surveyed by the NEPA research team on behalf of the Klarna brand.

– While deferred payments have been popular in Western Europe and Scandinavia for some time now, in Poland some consumers still distance themselves from this solution. However, taking into account the scale of growth of the domestic e-commerce market, as well as the purchasing potential of younger, open to novelty users, we can expect a dynamic development of this trend in the near future. Especially since it gives customers a lot of opportunities. Not only to defer the payment in case of a temporary shortage of funds, but also to try on or check the product before payment. In my opinion, the growing popularity of BNPL is mainly due to convenience – it fits in with customers’ needs to do everything with one click – highlights Mateusz Osiecki, Country Manager for Poland at PrestaShop.

A channel for gaining new customers

BNPL solutions may seem attractive mainly from a consumer perspective. Meanwhile, it turns out that the owners of online stores also benefit from their introduction. Especially that it is safe for them – the service provider guarantees payment of the transaction.

– Among sellers using PrestaShop platform we see a systematic increase in interest in BNPL modules. We offer both solutions created in cooperation with partners such as Klarna and Polish Comfino as well as our own PrestaShop Paylater module (created in cooperation with PayPlug and Oney) – points out Mateusz Osiecki. – Introducing BNPL in an online store translates directly into increased cart value and a higher conversion rate. We expect that deferred payments will have a key impact on the development of the e-commerce sector in the near future.