Buy Now Pay Later improves sales for two thirds of UK retailers

Two thirds of UK retailers report improvements in at least one area of their business sales and performance metrics as a direct result of offering buy now pay later (BNPL) payment to customers, according to a new report by RFI Global.

The research reveals that the most common benefit was sales conversion, with 61% of BNPL-accepting retailers indicating that it had improved their access to new-to-business customers.

This drove growth in revenue for 52% of retailers and profits for 37%.

With more than 17 million UK consumers having used BNPL services, new customer acquisition improved for 59% of retailers and 43% said customers were making more frequent purchases.

READ MORE: Klarna valuation plummets by 85% as investors lose appetite for BNPL

However, 63% claim they are not interested in BNPL as a payment method, citing a “lack of relevance.”

The report also also shows that one in five UK retailers are concerned about exposing their business to credit risk.

“Even though there’s a fee for retailers to offer BNPL as a payment option, most retailers report a clear improvement in sales and other performance metrics,” RFI global head of business payments Mark Schultz said.

“Our research shows that the lack of awareness among retailers of the benefits of BNPL is acting as a clear barrier to growth.

“Rectifying these misperceptions and educating non-accepting retailers will be key to accelerating the uptake of BNPL in the UK and globally.”

Click here to sign up to Charged’s free daily email newsletter

NewsPayment

RELATED POSTS

Leave a Reply

Your email address will not be published. Required fields are marked *

Fill out this field
Fill out this field
Please enter a valid email address.