Buy Now Pay Later is Having it Moment During the Crisis

Buy now pay later services are becoming one of the biggest benefactors during the current crisis; consumers have turned to these services to help split up payments for essential items in the office, kitchen and even for fitness; services charge between 3 and 6 percent per transaction, retailers would normally pay between 1 and 2 percent on interchange fees when a purchase is made by credit or debit card; merchants are willing to pay the higher price in an effort to convert more customers especially as more brick and mortar stores are closed; Splitit has seen a 78 percent cart conversion and AfterPay has seen a 22 percent increase in conversion; Affirm has seen increases in average order values by 85 percent and Klarna has seen a 45 percent increase in order values; the companies take on the risk as the retailer is paid right away and so the credit risk models for these companies will certainly be tested; many will not allow additional transactions until current balances are paid in full as a means of enticing the consumer to stay current. Business Insider

  • Emily Donato

    With efforts in many different areas of the team, she helps manage, organize and execute digital and event content. She works with webinars, podcasts, social media along with managing the hundreds of speakers that attend our conferences. Emily was a part of the Zimmerman Advertising Program at the University of South Florida. She graduated in 2019 receiving a Bachelor of Science in Business Advertising.