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Paying with BNPL in-store provides desired flexibility

15.10.2021
3 min
[credi2]

To find out what consumers expect from BNPL solutions and how such paying options influence their shopping behavior, Credi2 conducted a representative study in Germany and Austria with 1,000 respondents. More than half of the respondents said they would like to have flexible payment methods both online and at the POS, while a third of consumers would appreciate the offer of additional services at the point of sale.

Buy now, pay later solutions have become an integral part of the daily shopping experience. Consumers are increasingly being offered flexible payment methods, especially online. As a result, and not least due to the pandemic, online retail benefited enormously last year. In contrast, consumers often lack the option of paying with BNPL in-store. According to our study “Consumer Behaviour Rethought”, six out of ten respondents would like to see a choice of BNPL financing offers at the point of sale. Retailers who have set their focus on brick-and-mortar-stores must offer customers the option of paying with BNPL in order to strengthen customer loyalty and to remain alive in times of the booming online trend.

Range of additional services: Repair service & insurance in high demand

If online shops offer a choice of payment options, consumers are more likely to spontaneously buy higher-priced products which they can then pay off in installments. Most consumers associate a buy now, pay later solution for a high-value product with the desire for a long period of use and the corresponding additional services. This is why 65% of those surveyed would book a repair service along with their purchased product. More than 50% would even take out insurance at the time of purchase.

Rising trend: subscription models

The demand for “renting instead of buying” is clearly on the rise. The current offer of subscription models however is not satisfying, especially for the younger generation.

In addition to financing solutions, 60% of respondents under the age of 35 would like to keep up with the latest technology by regularly upgrading their phones and laptops to successor models. With additional offers like these, brick-and-mortar stores can catch up significantly in the competition with booming e-commerce.

In cooperation with Credi2, seven Apple resellers in Austria and Germany are currently offering their customers subscription models for Apple products. With the subscription model, Apple Premium Resellers can provide their customers with full flexibility: instead of buying products, they rent them on a monthly basis for a period of 2-3 years. That way, customers can enjoy the latest technical innovations by regularly upgrading to the latest device.