Why should businesses look into ‘Buy Noy, Pay Later’
Today, we're talking about the rise of buy now, pay later (BNPL) platforms and how they're evolving into larger shopping apps. Joining us is Vaibhav Dabhade, the CEO and founder of Anchanto, a company that specializes in product innovation strategy and helping businesses improve their ecommerce logistics and sales.
Vaibhav explains that BNPL is a form of short-term financing that allows consumers to purchase products online and pay for them later, giving them more flexibility in their spending. This trend has seen a significant increase in the past two years and is projected to continue growing at a rate of 40% per year.
One of the major changes BNPL has brought about is that consumers are now actively searching for products on platforms that offer this option. In fact, a study by MasterCard found that almost 45% of consumers in Singapore explore products with the intention of using BNPL.
For businesses, the introduction of BNPL presents new opportunities to reach consumers who may have been hesitant to make large purchases. However, Vaibhav stresses that businesses need to carefully consider their consumer preferences and purchase points before implementing BNPL options to ensure a seamless, omni-channel experience.
He also acknowledges that there may be downsides to BNPL, such as the potential for increased consumer debt. But overall, he believes that the benefits outweigh the risks and that BNPL will continue to play a major role in the ecommerce ecosystem.