This month’s Buy Now, Pay Later Tracker® results also show that more than half of consumers are either more likely to choose retailers that offer it or to switch to those that offer it. According to Xiao Wang, CEO of Boundless, PYMNTS is proof that BNPL benefits both companies and their customers.
An interview with Xiao Wangco-founder and CEO of an immigration services startup and partner of Splitit Without Borderson how BNPL helps companies that implement it.
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There are few groups that face more challenges in the United States than recent immigrants and those wishing to immigrate, particularly when it comes to affording themselves the services necessary to support their efforts. Not only are these people more likely to be poorer than the average natural citizen, but they also face the additional expenses of navigating the complex immigration system for themselves or their family members.
“There are a lot of hurdles that stand in the way of someone starting to live their life in the United States, and a big part of that is being able to save enough money to even start that process. Buy now, pay later allows us to reduce this barrier for families. »
Offering buy now, pay later (BNPL) can benefit both the business implementing it and its customers. Customers are much more likely to make purchases and in much larger quantities when they can spread the cost over multiple smaller payments, increasing business revenue.
“[BNPL] both increase conversion rates [from] people who will buy now instead of waiting, and it also increases customer satisfaction because we are able to offer a benefit that customers cannot get anywhere else.
BNPL could potentially generate additional revenue in the future as it enables more customers to make purchases that they otherwise could not. Removing institutional barriers to lending for underserved populations like immigrants is a good business decision — and not just for those who serve immigrants directly. Improving financial inclusion can generate revenue at all levels.
“The American financial system is inherently flawed against a number of different types of populations of which immigrants are one of them. But buy now, pay later providers have enabled customers who are limited by traditional agency credit scores. What I really hope for is the proliferation of new ways to better understand the creditworthiness of a wider section of the population, especially those who have been disadvantaged before.
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