How “Buy Now, Pay Later” Increase Sales by a LOT
Alejandro Cuauhtemoc-Mejia
Book Author: Digital Marketing l Global Growth | Corporate Strategy
Buy Noy Pay Later isn’t just a nice support for people—it’s changing all retail style. In 2023, BNPL spending was over $300 billion and is projected to reach $450 billion by 2027.
With major retailers like Walmart and H&M partnering with Affirm, Klarna, and Afterpay, over 45 million U.S. customers now use installment payments to shop.
A recent Journal of Marketing study by Stijn Maesen and Dionysius Ang shows that BNPL boosts both the number of purchases and total spending per transaction. Compared to lump-sum payments, BNPL users buy more and spend more, particularly on higher-ticket items.
+9% increase in purchase frequency
+10% increase in transaction value
?? Perceived Affordability
Breaking payments into “4 installments of $15” makes the purchase feel more manageable than a lump sum of $60.
?? Easier Budget Control
Unlike credit cards, BNPL payments are predictable and spaced out.
What This Means for Marketers and Businesses
? Retailers Should Integrate BNPL – It removes price sensitivity barriers, increasing conversions and order value.
? Consumers Can Use BNPL for Smarter Budgeting – A tool for expense management, but with caution to avoid overspending.
? Policymakers Need to Monitor BNPL Growth – Regulation should ensure responsible lending practices.
BNPL is a sales strategy. As adoption grows, businesses that integrate it effectively will drive revenue and improve customer experience.
?? Is your brand leveraging BNPL strategically? Let’s talk. Visit Alexa Make Me Rich to stay ahead.