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Why Both Consumers and Retailers Have Embraced POS Lending

Infographic: Are you ready to buy now, pay later?

POS Infographic full - Why Both Consumers and Retailers Have Embraced POS Lending

©2021


Infographic: Does daylight saving time save on energy costs?

Are you ready to buy now, pay later?Point-of-sale (POS) lending enables consumers to pay for goods over time, as they would with installment financing or credit cards. But there are crucial differences between those options and this fast-growing method, which is offered at checkout.

Pandemic increased consumer adoption

As of March 2021, 56% of Americans have used a buy now, pay later (BNPL) service - up from 38% in July 2020Growth in BNPL use between July 2020 and March 2021:
  • 18-24 years: 62%
  • 25-34 years: 28%
  • 35-44 years: 21%
  • 45-54 years: 26%
  • Over 54 years: 98%

Additional stats

  • 61% of users prefer to finance purchases through a retailer rather than through a third party;
  • 53% of Americans who haven't used BNPL said they'd likely give it a try in the next year;
  • $291 U.S. POS finance market.

Potential consumer benefits

  • Buy big-ticket items immediately
  • No fees or interest as long as payments (usually total of four) are made on time
  • No/low paperwork required
  • Merchant conducts only a "soft credit" check that doesn't affect credit scores
  • Arrangements aren't required to credit bureaus

Potential retailer benefits

  • Increased sales
  • Greater consumer loyalty and repeat business
  • Wide variety of in-house and third-party financial technology options
  • Seamless integration with current payment system
*Source: McKinsey, Motley Fool, Forbes, Flene Research Institute