CSA_PayPal_Animated Spotlight_June2021 BNPL, Buy now, pay later, Installment payments, Deferred payments, PayPal Pay in 4, Payment plans, pandemic spending, pandemic online shopping

How PayPal’s BNPL Is Retail’s New BFF

As buy now, pay later (BNPL) continues to gain widespread appeal, PayPal is providing a simple, seamlessly integrated solution called Pay in 4* that’s uniquely positioned to facilitate ecommerce growth for retailers.

Only on the market for less than a year, PayPal’s Pay in 4 interest-free installment solution has proven to be a big win for customers and businesses. A match made in heaven!

While not a new concept at heart, BNPL use skyrocketed during the pandemic and has been turning heads — and driving sales — ever since. But as its popularity soars, not all retailers have caught on to the trend, especially how younger-generation shoppers, previously perceived as credit averse, are leading the charge. With “normal” shopping seasons taking stride once again, brands without a BNPL option may miss out on:

Leading retailers across a broad spectrum of categories have adopted various forms of BNPL:

of older Millennials (ages 30-39)

When customers are offered the opportunity to buy now and pay later, it has an immediate and positive impact on online shopping, boosting consumer confidence and spending.

A Summer Breakout with BNPL

Friends Don’t Leave Shopping Carts Behind

Despite the ubiquity of social media and all things digital, many consumers still feel hesitant about sharing their financial information online — and rightfully so.

Who’s in the Inner Circle?

7. TMCnet 8. Forbes 9. Citizens Bank 10. Forbes 11. Morning Consult 12. PayPal Q4 2020 Earnings Call. Includes Buy Now Pay Later, Q4 2020 results for US, FR, UK and DE Installments. 13. Analysis of PayPal internal data October 2020 through February 2021.

In 2020,

In 2019, almost

Credit Happy

Credit is the most popular payment method for Millennials, and members of Gen Z are warming up to it.

Better Buying Options Are the Way to a Buyer's Heart

of sales, on average, come from the program, according to retailers offering BNPL

of consumers ages 18-39 are more likely to shop at a merchant again if they offer a BNPL option

It’s no surprise that BNPL helps make larger purchases possible.

of consumers ages 18-39 can make purchases they would otherwise postpone

Post-pandemic excitement and buying confidence for consumers is emerging from the ability to travel and continue life as normal.

Shoppers are ready for a new look, as sales in apparel are expected to see continued growth through the rest of 2021.

A recent survey shows 3 out of 4 respondents plan to take at least one vacation this summer, with 43% claiming they’ll spend more money than in the past; and travel leads to greater spending in clothing, accessories, footwear, electronics and more.

As live school reopens and young people look to buy computers and big-ticket items, BNPL retailers will have a strong advantage in attracting customers.

It’s well known that online shopping is hampered by abandoned shopping carts and the challenge of losing sales to “checkout friction.” A cumbersome checkout process may lead to big losses for retailers, and BNPL could play an important role in creating a seamless experience:

The financial losses from abandoned carts amounted to

of shoppers said they were more likely to make a purchase if they were offered a payment plan with a seamless point-of-sale experience.

All About the Trust Factor

of consumers rate “trusting their financial information is secure” as the number one factor when paying online.

Today’s consumer has a heightened awareness of predatory lending and considers a brand’s ethical “footprint” when choosing where to spend money.

PayPal is the most trusted BNPL brand among Millennial and Gen Z consumers.

of young consumers (ages 18–39) said they trust PayPal to keep their financial information secure compared to an average of 3.7% among the top six competing BNPL providers.

Pay in 4 for the Win*

$1 billion

Pay in 4 average order value (AOV) is

Pay in 4 has

It can be

Make PayPal’s Pay in 4 your new best friend today!

Back to School

Travel Mania

Summer Love

Are you in?

Many Merchants Are Already Cozy with BNPL

21%

28%

32%

Nearly half of consumers said they spend anywhere from 10% to over 40% more when they use BNPL vs. a credit card.

Roughly 7 out of 10 younger consumers said they are likely/extremely likely to use a BNPL solution for furniture or for an item that costs more than $1,000.

Greater in-store and online sales opportunities

For retailers, it’s clear that buy now, pay later can’t wait. Here’s what you need to know.

The chance to reverse abandoned-cart revenue losses

Recruiting a new generation of shoppers and retaining loyalty following the online shopping shifts of the pandemic

70%

of US retailers said they offered or would offer pay-later options.

of US retailers planned to INCREASE marketing investments in BNPL.

52%

48%

60%

69%

53%

Sent

of Gen Z (ages 18-22)

of younger Millennials (ages 23-29)

used credit during a sampled week from 2020.

67%

Learn More

79%

$34.4 billion

in 2018 (about 7% of total US digital commerce sales).

76%

SOURCES 1. eMarketer 2. eMarketer 3. How Younger Audiences Value Credit Offerings Today, commissioned studies conducted by Forrester Consulting on behalf of PayPal involving 504 US consumers age 18-39 and 473 B2C merchant respondents with influence over ecommerce and/or credit decisions, November 2020. 4. An online study commissioned by PayPal and conducted by Netfluential in November 2020, involving 1,000 US online shoppers ages 18-39. 5. Forbes 6. Fibre2Fashion

Pay in 4 drove over

of Total Pay Volume (TPV) in its first quarter

39% higher

no additional fees

for you and no origination fees for your customer.

Best of all, you get paid up-front while your customers pay later!

with easy promotion and messaging on your site

set up instantly

than standard PayPal transactions

Learn More

Younger shoppers no longer appear to be credit shy. This bodes well for BNPL.

Pay in 4 is winning over younger-generation shoppers and stirring up a lot of love at checkout!

of Gen Z (ages 18-22) used credit during a sampled week from 2020.

67%

A significant percentage of young adult consumers say they are comfortable/extremely comfortable using credit:

PayPal has been ranked the second most trusted brand globally by Morning Consult.

more trusted by Millennials (ages 24-39) to keep their financial information secure than other buy now, pay later providers.

14x

PayPal is

*About Pay in 4: Consumer late fee may apply for missed payments and varies by consumer’s state of residency. Loans to California residents are made or arranged pursuant to a California Finance Lenders Law License. PayPal, Inc. is a Georgia Installment Lender Licensee, NMLS #910457.)

*None of the merchants mentioned above are affiliated with PayPal.