Ellen Berge published “Key Questions Retailers Should Ask About Buy-Now-Pay-Later” in the March 2022 issue of Results Magazine. The following is an excerpt:
Buy-Now-Pay-Later (BNPL) has taken over online shopping checkouts with appealing offers allowing consumers to split payments for everyday purchases into four installments, usually interest free. Retailers have quickly grasped that consumers using BNPL have become very important customers. They are likely to spend more and buy more with BNPL offers. Lawmakers and consumer protection regulators, however, are concerned that consumers can easily spend more than they can afford and rack up multiple BNPL purchases with varying creditors, payment schedules, and payment terms. Most of the heat thus far has focused on BNPL program providers that allegedly charge undisclosed late fees and make payments hard to track, causing consumers to incur overdraft and nonsufficient fund fees on their linked bank accounts. However, retailers that offer BNPL payment options play an important role in the BNPL transaction and have their own unique issues to evaluate.
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