Awareness and Uptake of 'Buy Now, Pay Later' Services Continues to Rise
According to Zip, the 'buy now, pay later' (BNPL) industry continues to grow at a rapid pace, driven by strong consumer interest and changing attitudes towards credit card debt.
SYDNEY, July 14, 2021 /PRNewswire/ -- A few years ago, the concept of buy now pay later (BNPL) was linked to 'lay-by' services, in which a store would put aside an item and the customer would pay it off in instalments. Once it was paid for in full, they could take the item home. When BNPL players, like Zip, launched in the market, they struck a chord with consumers.
As Zip explains, BNPL services allow the customer to take the goods home immediately, as the provider pays the store for the items upfront and then the customer pays the BNPL provider back in instalments. The service works in a similar way to a traditional credit card, except purchases are interest free, which is incredibly appealing to consumers.
As consumers continue to turn their backs on credit cards, they are becoming more aware of the benefits BNPL provides, including spreading purchases over time, budgeting and managing cash flow.
According to YouGov data, approximately 25 per cent of Aussies aged over 18 have used BNPL and awareness of the services provided by brands like Zip continues to rise. Females aged between 25 and 45 with a monthly income of less than $6,000 are the key users of BNPL services.
BNPL simplifies how customers pay by offering fast and seamless solutions online and instore. YouGov reports that the main purchase categories for buy now pay later (BNPL) customers include furniture and household staples, electronics, clothing and beauty products.
Zip's hero product, Zip Pay, offers users interest free, flexible repayments and the new digital Zip card allows customers to 'Tap and Zip' just about everything, everywhere.
When customers sign up for a Zip account, a repayment schedule is set to cover the minimum monthly repayment, which is determined by the credit limit assigned to the individual. Users can choose to pay the instalments weekly, fortnightly or monthly.
As BNPL awareness and uptake continues to rise, it's clear brands like Zip, who also offers business loans, have truly changed the way consumers pay in the modern, contactless world.
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SOURCE Zip Co
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