The Merchant Side of BNPL

Buy now, pay later (BNPL) payment options have built a niche at checkout, quickly gaining popularity by giving consumers a flexible way to pay and the instant gratification of immediately receiving their product. But the solutions have real pros and cons for merchants, who need to take a good, hard look at which products are working for them and which are not. BNPL has its adherents, but it’s not nearly as popular as credit or debit cards, and that gives merchants more leverage in their relationships with providers.

This Javelin Strategy & Research report examines what is happening in the space, as well as the assessments merchants should be making, with help from their service providers. In some cases, BNPL providers, in their own search for greater reach and revenue, are taking pieces of the consumer relationship that merchants are also trying to gain. In others, BNPL providers and merchants can work together to enhance both parties’ prospects.

Key questions discussed in this report:

• What are the benefits and drawbacks of offering buy now, pay later solutions for merchants?
• What are BNPL providers’ strategies and how do they affect merchants?
• What should merchants and their solutions providers aim to get out of their relationships with BNPL providers?

Companies Mentioned:

Affirm, Afterpay, American Express, Apple, Block, FIS, JPMorgan Chase, Klarna, Mastercard, PayPal, Sezzle, Splitit, Visa, Worldpay