“Buy now, pay later” drives 230% growth in online shopping in the United States!

I believe that some consumers who often shop online on domestic e-commerce platforms have noticed that many domestic online stores have launched the "buy now, pay later" function. This service not only provides great convenience for consumers, but also stimulates consumers to place orders to a certain extent.

This function also works for foreign online shopping platforms. Especially in the global epidemic environment in the past two years, people have greater employment pressure and are more cautious in consumption. However, for consumers, "buy now, pay later" is not only a guarantee for their own consumption, but also can stimulate consumers to place orders.

It is understood that in the past year, online consumer spending in the US market has increased by 230% due to the "buy now, pay later" policy, and this growth trend has continued until the end-of-year shopping season.

Moreover, this kind of "pre-consumption" is a trend that is more popular among young consumers. About one-fifth of American consumers will choose "buy now, pay later" as their first choice for payment, and 22% of them are from Generation Z. For young people, as consumers, enjoying this service is also a manifestation of trust in themselves, which will bring them a good consumption experience.

According to relevant data, the “buy now, pay later” service provided in the United States has led to an 11% increase in Generation Z customers on Black Friday and Cyber ​​Monday in 2021 compared with the same period last year.

Some merchants said that providing "buy now, pay later" services will not only stimulate consumers to place orders, but also drive consumers to become repeat customers and consume again, which can greatly help improve the store image and repurchase rate to a certain extent.

However, the "buy now, pay later" service also has certain drawbacks. According to a survey by Credit Karma, 34% of consumers who use the service have missed payments. There are even people who have defaulted on their credit cards and switched their consumption to "buy now, pay later", which can also cause them to fall into a deeper debt crisis.

Therefore, sellers must carefully consider activating the "buy now, pay later" function to avoid adverse effects on themselves and damage to store revenue. At the same time, this service may also encourage bad consumers to "get something for free" and frequently return the goods after a free trial. In that case, the gain will outweigh the loss.

“Buy now, pay later”

Driving the growth of online shopping in the United States