The buy now, pay later (BNPL) market is booming. Customers nowadays expect flexible payment options when shopping. Six out of ten consumers state that it does not matter to them who is behind the BNPL loan. Particularly young customers opt for “buy now, pay later” when shopping online and in-store. This is supported by the study “Consumer Behaviour Rethought”, for which the fintech Credi2 conducted a representative survey among 1,000 Germans and Austrians in June 2021.
“According to Juniper Research, the BNPL industry will quadruple and become a trillion-dollar market in the next five years.”, says Daniel Strieder, CEO and co-founder of Credi2. “The ability to pay as flexibly as possible with BNPL is gaining in importance and becoming a decisive shopping factor.”
BNPL models are particularly popular among 18- to 34-year-olds. More than 70% would choose a financing solution in order to shop more spontaneously or purchase high quality products. Another very important aspect in favor of BNPL is financial flexibility. Interestingly, consumers agree with the conditions at the point of sale. Every third consumer thinks that they are more favourable compared to their principal bank.
Simple, fast and flexible – that’s what customers expect from “buy now, pay later”
“The entire process has to be simple,” says Credi2 CEO Strieder. “Hardly anyone is prepared to go through the hassle of submitting their loan application at their principal bank and then waiting for the money to be paid out. Needless to say, it is important for customers that the credit application is smoothly integrated into the purchasing process.” Three out of four respondents expect a fast loan approval within a few minutes as well as flexibly adjustable loan rates.
“International companies such as Klarna have long since recognised the potential of this fast-growing market and are pushing strongly into the BNPL business. Banks, on the other hand, as former full-service payment providers are increasingly in danger of losing the relationship with end consumers,and thus foregoing an attractive area of business,” Strieder is convinced.
Despite busy IT departments and lengthy processes, traditional institutions can secure their share of the booming market. With platforms such as the one by Credi2 banks can launch their own BNPL solution and lead it to market maturity within just a few weeks.
Here you can download the study “Consumer Behaviour Rethought”.
About Credi2 GmbH
Credi2 specialises in embedded finance solutions for ‘buy now, pay later’ and subscriptions. The fintech enables banks, merchants and OEMs to offer modern sales financing solutions via the Credi2 platform. Customers include Volkswagen Bank, Raiffeisen Bank International and Apple. Credi2 has worked with these companies to launch innovative and highly successful payment solutions in a short period of time.
The Vienna-based scale-up was founded in 2015 by Daniel Strieder, Michael Handler and Jörg Skornschek. In addition to the founding trio, the management team also includes Christian C. Waldheim and Jennifer Isabella Schimanko. Credi2 is a fast-growing fintech currently employing more than 90 people from all over Europe.