It’s important to acknowledge that following the introduction and adoption of certain payment products, over time, consumer behaviour changes. This is accomplished either by introducing completely new behaviours or building on existing ones. Cash on Delivery, Paytm Wallet, and now BNPL are good recent past examples of behaviour changing products and services.
The most avid fans of BNPL payments are consumers in the newer generations: millennials and Gen Z. And it’s clear why: these types of consumers have little credit history and big ambitions. Therefore traditional payment methods like credit cards or loans do not appeal to them. They need a quick, frictionless process that does not require a lot of admin. While it used to take months and even years to establish financial credibility using traditional methods, today, all of that is possible with real-time data.
The possibility of delaying payment for goods for younger cash-strapped consumers for 3 months is another incentive to opt for BNPL. And suppliers of these services are omnipresent on all touchpoints where these customers are present: heavily advertising on social media or during checkouts of retailers that appeal to these demographics, like Asos, H&M, Boohoo or JD Sports.
However, BNPL providers now also want to appeal to the other generations and are partnering with more upscale retailers for investment purchases like high-end mattresses and expensive electronics.