Chargebacks911 COO Monica Eaton-Cardone explains that “Buy now, pay later,” or “BNPL” plans are increasingly embraced by both merchants and consumers as an alternative payment method. BNPL offers a way to make purchases, stretch payments out over several weeks, and do it all without any existing line of credit.
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Chargebacks911 just dropped the 2022 Chargeback Field Report, a joint endeavor with industry news outlet Card Not Present. The report details merchants’ surging interest in BNPL, among other things. The report found that more and more merchants are offering alternative payment options. In fact, the number of retailers providing BNPL options grew by 20 percent in 2021.
Is BNPL a viable option for more traditional businesses? Monica suggests the answer is yes. “Not only is offering BNPL a good choice for physical stores, but it may also be necessary if merchants want to keep their business competitive,” she says.
But it is not all sunshine and rainbows in the BNPL space. Monica warns, “Shoppers have shown that they like having the option of installment payments. Therefore, retailers who provide this type of payment plan in their stores may gain a competitive edge. At the same time, consumers who are careless with their resources may find themselves overextended, which can lead to vulnerabilities.”