COMMENTARY: Why Consumers Love BNPL—And What It Means for Businesses

As consumers navigate tighter budgets and businesses adapt to shifting spending habits, buy now, pay later (BNPL) has emerged as more than just a passing trend. Like layaway in the days of yore, BNPL breaks purchases into smaller pieces. However, unlike layaway, BNPL meets the need for instant gratification by letting consumers have their goods before fully paying for them.

With 66% of global consumers now open to using BNPL, this payment method is reshaping how people shop and how businesses operate. The flexibility of BNPL allows shoppers to spread payments over time, making purchases more accessible. For businesses, BNPL isn’t just a convenience, it’s a strategic opportunity to increase sales, attract new customers, and build loyalty.

Consumers are increasingly prioritizing financial control and convenience, making BNPL an attractive alternative to traditional credit cards. Younger shoppers, especially Gen Z and Millennials, are leading the charge, accounting for more than 80% of BNPL users. Financial flexibility—like spreading out payments that are typically interest-free for a set amount of time—is a powerful draw, particularly in uncertain economic times.

Worldpay’s research shows that 57% of shoppers are more likely to use BNPL when they’re feeling financial pressure, underlining its importance as a payment option. These trends go beyond any one demographic. BNPL’s accessibility makes it a payment tool that resonates across income levels and regions.

For businesses, BNPL is more than a payment method—it’s a growth driver. By enabling greater purchasing power, BNPL helps retailers reduce cart abandonment, boost conversions, and increase average order sizes. Sectors like fashion and electronics have seen BNPL drive significant results, with shoppers choosing it for its simplicity and transparency.

Studies show that businesses offering BNPL report higher customer satisfaction and loyalty. It’s not just about attracting new shoppers—it’s about creating frictionless experiences that keep them coming back. In a crowded market, BNPL has become a key differentiator for brands looking to stand out.

Despite these benefits, businesses must carefully balance innovation with simplicity to ensure BNPL enhances the customer journey. When faced with a need to create a new kind of account or enter a ton of new information—or the need to leave the shop’s checkout page—many consumers wind up abandoning their cart. A seamless experience means checking out can happen in just a few clicks, whether using cards, digital wallets, or BNPL.

To optimize BNPL effectively, it’s essential to carefully evaluate how, where and when it is implemented. A successful approach should take into account these three things:

• Capturing Interest Upfront: Make BNPL options visible early in the shopping journey, such as within product pages or at the first stage of checkout;
• Choosing the Right Partner: There are many established BNPL providers, so it is incumbent on the retailer to understand which offering is the right one for their customers and their product offering;
• Using Analytics: The right data can measure BNPL’s impact on customer behavior and optimize its placement. The best outcomes will come from ongoing optimization.

While regulatory scrutiny is increasing in key markets like the United States and the United Kingdom, emphasizing the importance of compliance, partnering with reputable providers, and staying informed about evolving regulations, will be another important consideration for businesses to mitigate risks, while reaping BNPL’s rewards.

BNPL isn’t just a payment trend—it’s a glimpse into the future of customer-centric commerce. As global adoption continues to rise, businesses that embrace BNPL will unlock opportunities to connect with customers on their terms.

For those ready to take the leap, BNPL isn’t just about keeping up with consumer expectations—it’s about setting the pace for what’s next in payment innovation.

—Michelle Young is general manager of Merchant Bank at Worldpay.