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Fast Company
6 days ago
- Business
- Fast Company
Buy now, pay later: Why 52% of Americans trust it—and what brands need to know
Buy now, pay later (BNPL) is reshaping how Americans approach spending. Once viewed as a financing solution for bigger-ticket purchases, the service has grown into an everyday convenience with the potential to disrupt how businesses connect with and convert customers. At PartnerCentric, we conducted a nationwide survey of more than 1,000 consumers to understand BNPL's current adoption and future trajectory. The insights surprised even us: BNPL is not just growing—it's fundamentally altering the consumer journey in ways that smart businesses should pay attention to. According to our data, 52% of U.S. consumers currently use BNPL, with Gen Z and Millennials leading the charge. What's more, 15% of consumers are trying it for the first time in 2025, with 35% saying they plan to increase their usage this year. They are also using this payment option across a range of categories, from electronics and home goods to groceries and even food delivery. In a recent conversation with Newsweek's Hugh Cameron, I discussed how BNPL plans have transcended simple checkout convenience. Now they're empowering shoppers to set their own financial rhythms, whether that means smoothing out weekly grocery bills or snagging concert tickets without delay. This evolution reflects a deeper consumer craving for payment tools that bend to the tempo and tensions of everyday life. Brands should seize this moment by positioning BNPL as a tool of empowerment, leading with messaging that emphasizes customer control over cash flow and weaving installment options into product pages, cart previews, and marketing touchpoints. Partnering on co-marketing promotions with BNPL platforms can extend your reach to already-engaged shoppers. Consider curating bundles or exclusive offers that resonate with high-margin items, based on an analysis of which categories and SKUs see the biggest lift with BNPL. From our study, what stood out is how BNPL affects purchasing behavior. The average user now makes five purchases per month using BNPL, totaling around $761 in monthly payments. What's more, nearly half of users admitted to spending more than they would have without the service or said that it increased their impulse buying. This data tells brands that BNPL isn't just a new way to pay. It's a proven catalyst for bigger baskets and more frequent purchases. You're looking at a predictable uplifter for both average order value and overall sales volume. By actively promoting—and optimizing—installment plans throughout the shopping journey, you can tap into consumers' willingness to spend more and buy more often. CHECKOUT IS WHERE BNPL MAGIC HAPPENS One of the most actionable insights from our study is that BNPL is often discovered in the moment. One-third of consumers tried it for the first time at checkout, and another 34% said they first heard about it from friends and family. Meanwhile, the Federal Reserve Bank of Boston's 2023 Survey and Diary of Consumer Payment Choice found that 53% of respondents had BNPL explicitly offered to them, up from roughly one-third in 2021. This underscores how point-of-sale prompts have become a primary discovery channel. Offering BNPL doesn't just give customers another way to pay. It creates an opportunity to remove hesitation and nudge decisions forward when price might otherwise be a blocker. For many, it feels like a risk-free trial run on spending. A seamless technical integration—ideally, one-click pre-qualification—will ensure the flexibility you promise doesn't stall at the 'buy' button. Ongoing monitoring of conversion rates, average order values, repeat-purchase behavior, and evolving regulatory requirements will then help you fine-tune your strategy and maintain compliance. CREDIT CARD ALTERNATIVE—OR CREDIT CARD COMPETITOR? Among BNPL users, most say they prefer it to using a credit card. And it's easy to see why. Unlike credit cards, BNPL services typically don't charge interest or immediately affect credit scores. So these platforms are seen as more trustworthy and less intimidating than traditional credit. Still, the landscape is shifting. Credit bureaus like Experian and FICO have started including BNPL data in reports, prompting mixed reactions. Some experts urge caution, while others feel it is a necessary reality in today's economic environment. This evolution signals a move toward normalization—and possibly even regulation—as the appetite for BNPL remains strong. BNPL IS A STRATEGIC SIGNAL, NOT A SALES TACTIC For modern consumers, financial flexibility isn't a perk—it's a baseline as they consider how to manage money in an economy defined by volatility and high expectations. So brands must rethink how they meet their customers. Buy now, pay later isn't about pushing debt—it's about offering control, convenience, and choice in one click. It says, 'We get it. We've built it for your reality.' That kind of empathy at checkout builds trust, loyalty, and relevance. As the cost of living continues to rise and credit card fatigue grows, BNPL offers something rare: a solution that works for both the business and the buyer. Brands that treat BNPL as a strategic layer in the customer experience can see measurable impact: higher conversions, larger baskets, and deeper engagement. So if you want to stay connected to the pace of real life, now is the time to lean in. The super-early-rate deadline for Fast Company's Most Innovative Companies Awards is this Friday, July 25, at 11:59 p.m. PT. Apply today.
Yahoo
10-07-2025
- Business
- Yahoo
Returns, Refunds and the Fight for Loyalty
What happens 'beyond buy' is no longer a consumer experience afterthought; it's a strategic and financial imperative. Returns, refunds and delivery delays don't just affect consumer sentiment — they show up in your margins, repurchase rates and quarterly results. In a market where loyalty can disappear with a single bad experience, post-purchase isn't the end of the journey. It's the moment your brand and your margins are both at stake. It's where trust is tested and the true cost of consumer disappointment shows up in your bottom line. More from WWD The 16 Best Canvas Tote Bags for a Timeless, Sturdy, and Quiet Luxury-Coded Summer Bag Rado Unveils Its Beloved Anatom In Three Vibrant Summer Hues The 13 Best Tinted Moisturizers With SPF for All Skin Types, Tested by Editors and Experts Take Amazon's recent move to retroactively refund consumers for years of return errors. It wasn't just a PR decision; it was a margin play. Even the most sophisticated retailer in the world couldn't escape the risks of post-purchase breakdowns. The difference? Amazon can absorb the hit. Most others can't. For nearly every other brand, a misstep like that would come with real financial consequences and no blank check to make it right. The takeaway isn't Amazon's fumble — it's the cost of waiting until something breaks to act. Post-purchase cracks don't just appear overnight. They surface what wasn't built to scale in the first place. Operational excellence matters, but what sets leaders apart is recovery: fast, proactive and rooted in consumer trust. Returns have long been treated as a cost center. But for retailers who manage them with intention, they're also a powerful lever for growth. Today's consumers don't just judge your products; they judge how easy it is to send them back. That choice influences repeat purchase behavior, customer retention and the return on your acquisition spend. Over 75 percent of consumers check the return policy before they ever click 'buy.' And 84 percent say a poor experience would drive them away for good. That's not just a logistics issue. It's a conversion risk, a retention risk and, ultimately, a revenue risk. Brands like Vuori and Patagonia understand that how you handle returns says as much about your brand as the product itself. Vuori's 120-day 'Happiness Guarantee' isn't an operational expense; it's a strategic investment in keeping customers coming back. Patagonia's 'Ironclad Guarantee' doesn't just reduce friction; it reinforces consumer confidence at every purchase. These brands aren't just focused on logistics. They're investing in long-term loyalty. The next wave of retail performance will be defined by what happens 'beyond buy.' From delivery transparency to fast, flexible returns and refunds, post-purchase is no longer just a support function. It's a financial engine. This isn't about backend efficiency for its own sake; it's about protecting margins, recovering revenue and extending customer lifetime value. As peak season approaches, the real question isn't whether your team is ready to handle returns. It's whether you can afford not to. In today's market — where customer acquisition costs keep climbing and average order value is often inflated by discounts — the margin left to protect is shrinking fast. What happens post-purchase is where loyalty is secured and profitability is preserved. Getting it right doesn't just improve retention — it protects the investment you've already made. This story was written by David Morin, the vice president of global customer strategy at Narvar. For more information about Narvar's 'beyond buy,' . Best of WWD The Definitive Timeline for Sean 'Diddy' Combs' Sean John Fashion Brand: Lawsuits, Runway Shows and Who Owns It Now What the Highest-paid CEOs at U.S. Fashion and Retail Companies Make Confidence Holds Up, But How Much Can Consumers Take? Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
