This is one of the weirdest ones yet, the model is not that strange to people, financing a product or a service has been there a long time ago, But what's making this a sneaky factor, is the fact that this Buy Now Pay Later model has been applied to almost every product, even food.
Businesses realized that a large segment of people are now taking a bit more time to decide whether to purchase something or not. With website and aplication tracking every move a customer have on their website, they realized that people are reaching the final stage of the sale funnel and stopping there when they see their total amount, and then they take a step back and dont purchase. Businesses had to think of something to let people continue sealing the sale, what better option to customers they thought than to split their amount into 4 payments, this way the consumer will only have to pay a small chunk of the amount every month. Also, usually what these business on websites and applications will do is that they will highlight the smaller amount that you will be paying every month, and decreasing the size of the total amount. This way, your brain would only see the smallest number and
would quickly justify paying it. According to a 2023 report by Adobe Analytics, Buy Now Pay Later usage grew by 14% year over year, with consumers using it for everyday purchases like groceries and clothing. Additionally, research from Financial Health Network founded that BNPL users spend on average 10% to 40% more per transaction than those paying upfront, exactly the outcome businesses are counting on.
If you go to any consumer based website today or application, you will certainly find the heart shaped icon, where you can add an item to a wish list. An item that you wish to have, but can not have today. Today more than ever, consumerism do not just end when you purchase the product, businesses want you come back again and agian.
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