Buy Now, Pay Later is giving credit cards a run for their money.
Consumers are increasingly using the BNPL payment option when shopping online, with usage during Cyber Monday up 21 percent year-over-year, according to a report from Adobe Analytics. A 2021 survey from Credit Karma also found that 44 percent of Americans have used a BNPL service, up from 42 percent the previous year. Carrie Schwab-Pomerantz, president and board chair at the Charles Schwab Foundation, believes BNPL could even overtake credit cards in popularity among post-pandemic online shoppers. Her insight was included in LinkedIn’s annual list of big ideas that could change the world in 2022, sourced from CEOs, entrepreneurs, and thought leaders.
As Schwab-Pomerantz points out, closed brick-and-mortar stores and discomfort around in-person shopping during the pandemic led to a surge in online shopping and BNPL transactions. Here’s what business owners can learn from the BNPL trend: