Buy Now Pay Later: A Trend That Will Become Even More Popular in 2021

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The unprecedented COVID-19 pandemic has adversely impacted businesses and industries. The retail industry, out of all, has taken a hard hit because of prolonged lockdown. People are still not confident to step outside and visit crowded places. The social distancing mandatory norms have also impacted consumer sentiment and sabotaged the demand.

Offline retail businesses had no difficulty luring customers with attractive schemes and offers before the pandemic. However, that time has changed. Customers who are still preferring to shop at malls, retail stores, and supermarkets are still substantially low in numbers. The reason being, the majority of them have resorted to contactless payment through card POS terminals, and digital transactions have soared substantially.

Also, the Buy Now Pay Later option has gained popularity among customers. It includes services such as instant loans at no extra cost, instant refunds, and a safer checkout process.

What is Buy Now Pay Later? 


As the name suggests, Buy now pay later allows consumers to buy a product and have it delivered to their location while delaying the payment to a later date. It is similar to the layaway method, in which consumers reserve an item and pay its price installments. The product can only be taken home once all payments are made.

With The Buy Now, Pay Later, you can access your item and pay the amount through pay later EMIs. This facility is offered by all electronic POS machines at retail stores. BNPL solutions are getting momentum among consumers because of easier and instant access to credit. Unlike other loans, the pay later EMI option requires minimum information such as the consumer’s name, email address, date of birth, and a billing address.

Benefits of having Buy Now, Pay Later 

Here are advantages of Buy Now, Pay Later from a store owner’s point of view

1. Increase in sales 

When you offer consumers multiple payment options through a POS machine, they will likely purchase more. With the availability of BNPL, consumers would still make purchases without having the money in their account.

When consumers opt for pay later SBI debit card EMI, it allows them to get the product without paying instantly. It also ensures an increase in sales, improving revenues. It works best when items are highly-priced and the installment period is manageable.

2. Lure in more customers

Interest rates charged on small credit are what brings hesitation on the consumers’ part. However, with Buy Now Pay Later, they can avail of products without having to pay interest, that’s why more and more consumers are choosing the pay later EMI option to purchase at retail stores.

Consumers are constantly looking for stores that offer Buy Now Pay Later services. BNPL service providers also use this opportunity to lure in customers. Some even have this shop and pay later option through android POS terminals or apps to buy online.

3. Build customer trust

Another benefit of the shop and pay later options is that consumers can get a trial period. There is no need to commit to purchasing unless you are sure. You can purchase a product and test the quality before purchasing it through BNPL.

Customers trust retailers that ensure full refund upon return of products. So, if you do not like the product, you can always return it and get a full refund. An increase in free returns could cost your business, but it will bring consumers loyal in the long-run.

4. Decrease in cart abandonment 

Card abandonment is when consumers start a check process and due to lack of options drops out of the process without completing the purchase. Now, the great thing about including shop and pay later options is that it can significantly decrease the abandonment rate.

5. Better credit solution

Buy Now, Pay Later is the most affordable and safer financial solution for most consumers. It is one of the safest forms of loan due to the absence of interest rates and flexible payment time.

Also, you do not have to worry about customers who may be unable to pay because the Buy Now Pay Later companies pay the merchants when the transaction is made and then pursue non-paying customers for payment.


Besides helping retail stores to increase sales and build customer loyalty, shop and pay later options offer great advantages to shoppers as well. Shoppers have access to instant micro-credit, relaxed eligibility criteria, zero interest rate, and ease of use.

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