Transcription of the video
Hello, I am Aude Vicaire and I welcome you to the Instant Paiement.
Today, we are going to talk about BNPL. You know, those four letters for Buy Now Pay Later.
We also use the terms fractional payment or payment in installments. Basically, BNPL is the name that is being used for this payment method that allows you to buy a product and defer payment, as its name suggests.
It is important here to clarify the regulatory framework in which the BNPL fits. It does not fall under the regulation of consumer credit because the payment splitting is less than 90 days, hence a real simplicity of the user experience. However, this regulation is evolving to protect people from the risk of overindebtedness.
More and more consumers around the world are enjoying this payment method. It allows to smooth out expenses over time and is often free for the consumer.
The question that arises is when and how the merchant gets paid, knowing that the payment is spread over time. This is a good question.
To answer it, remember that there are three players involved in a payment with BNPL: the customer who buys, the merchant who sells, and the entity that will finance the purchase, which may be a bank or the provider who supplies the solution.
At the time of payment, when the consumer chooses BNPL as a payment method, he will only pay the first part of his purchase, 25% for example if he has chosen to pay in four instalments. And the merchant will receive the full amount paid.
It is the financing entity that will advance the money to the merchants and the consumer will have to make the rest of the payments to BNPL's providers and not to the merchants.
This payment method, beyond the obvious advantages for the consumer, also has important advantages for the merchant. Thanks to BNPL, the merchant will remove a number of obstacles for his customers. It will help them to validate their order. Mechanically, this will increase the conversion rate.
Obviously, the BNPL also allows an increase in the average purchase basket and favors important purchases by smoothing out the expenses over time.
Finally, this solution increases customer loyalty since they will remember that the merchant, on which they made a first purchase, facilitates their payment thanks to the BNPL.
To summarize, BNPL allows an optimization of the conversion rate, an increase of the average basket and therefore of the turnover and finally a better customer satisfaction and therefore a greater loyalty.
At Market Pay, we offer BNPL on all our e-commerce and in-store solutions.
And that's it, the Instant Payment is over. Next month it's the vacations, so there won't be the episode, we'll meet again in September.
I take this opportunity to tell you that you can find Market Pay from September 20th to 22nd at the Paris Retail Week. We will be happy to discuss your payment issues with you.
Until then, don't hesitate to tell us what you think about BNPL in comments and for more information about Market Pay and our products, visit our website and follow us on social networks.
See you soon!
