There is a trend in the payments industry that is changing how consumers are buying and opening new opportunities for merchants. Buy now, pay later (BNPL) loans are now available through companies like Klarna, Affirm, Openpay and Afterpay. Technology companies like Apple are entering the market with their own BNPL loans once they realized the huge demand for this new method of payment. The interest and growth for these Fintech companies did not go unnoticed by traditional loan companies who are now finding ways to meet this demand and stay relevant in the current landscape.
For online merchants, this new method of paying has opened new sales opportunities as it is not only convenient for the customers to sign up and start using, but also gives consumers a way to budget their purchases especially for higher ticket purchases.
Most BNPL providers accept the liability for the cost of fraud, but it is important to note that consumers tend to hold the merchant responsible when they experience fraud, so putting up fraud prevention guidelines in place such as screening orders that seem unusual, or placed from an unknown IP addresses is in the best interest for the merchant and their consumers.
The payments landscape is always evolving and traditional methods of payments are becoming trite and giving way to new methods like contactless payments through digital wallets, self checkout and BNPL loans.
Like credit cards, BNPL is only a good payment option for customers when used responsibly. Most BNPL loans are interest free, however if you miss a payment it can result in costly fees and higher interest rates than a credit card carries.
We are constantly analyzing every trend in the payments industry, offering our merchants only the best options to save, grow and attract new clients to their business.