Buy Now, Pay Later: the benefits for e-commerce

Now, in addition to having the traditional, consolidated and widely accepted model of installment on the credit card, the merchant for having the Buy Now model, Pay Later (BNPL), or “Buy now, pay later”, which is transforming digital retail and consolidating as one of the trends of e-commerce. The system allows the consumer to purchase products and services by splitting the payment even without having credit card or bank limit, through installment payments via Pix. This simplicity has attracted more and more users, but its benefits go beyond the shopping experience, as BNPL has become an accelerator for conversion and online conversion companies.

According to data from the DataFolha Institute, the global volume of transactions via BNPL reached US$ 316 billion in 2023, with annual growth of 18%. The expectation is that this number will reach US$ 452 billion by 2027, growing at an average rate of 9% per year. This evolution shows that the model is not only a passing fad, but a permanent revolution in consumption habits.

Countries such as Germany and Sweden are already a reference, with 21% of the total e-commerce transactions carried out via BNPL. This penetration shows the potential of the model, which still has ample room to grow in emerging markets such as Brazil, where access to credit is more restricted and consumers value simple and transparent alternatives.

For retailers, this means higher sales conversion, higher average ticket and customer loyalty.In a competitive and saturated environment, offering payment facilities can be the differential that turns a visit into a purchase and an occasional buyer into a recurring customer.

Integration with Open Finance and Artificial Intelligence

The coming years will bring a new wave of evolution to BNPL. Integration with Open Finance will allow more accurate and inclusive credit analysis, expanding the eligible public and reducing default risks.By accessing open financial data, fintechs will be able to evaluate consumer payment capacity dynamically and in real time.

In addition, artificial intelligence is already beginning to act in the customization of credit offers. Algorithms can automatically adjust limits, deadlines and conditions according to the behavior of each user, creating unique and safer experiences. This customization is one of the greatest assets of modern BNPL, able to balance convenience for the customer and profitability for the retailer.

Direct benefits for e-commerce

Implementing a BNPL solution brings a number of concrete advantages to e-commerce. The main one is the increase in the conversion rate, as consumers who previously gave up on the purchase due to lack of credit or lack of limit on the card start to have an immediate alternative. Thus, stores that adopt BNPL register growth in sales volume, especially in higher value-added categories, such as electronics, fashion and tourism.

Another benefit is the increase in the average ticket. As the consumer does not have to pay the full amount at once, he feels more comfortable to purchase higher-value products or add extra items to the cart. This purchase elasticity is extremely valuable in periods of promotions and seasonal dates, such as Black Friday and Christmas.

BNPL also improves loyalty. Customers satisfied with the shopping and payment experience tend to return, especially when they perceive transparency, security and flexibility in the conditions offered. This reduces acquisition costs for new customers and strengthens the base of recurring consumers.

In addition, with the support of financial institutions and fintechs, the merchant does not assume credit risk, since the operation is intermediated by specialized companies. This guarantees payment and settlement for e-commerce within the contracted period, while the BNPL provider manages the installment with the end customer.

With the combination of technology, data and responsible regulation, BNPL redefines credit and consolidates the future of digital consumption; a future where paying later is synonymous with buying with more freedom, confidence and intelligence.