Buy Now, Pay Later: the benefits for e-commerce

In addition to the traditional, well-established, and widely accepted credit card installment model, merchants can now utilize the Buy Now, Pay Later (BNPL) model, which is transforming digital retail and establishing itself as one of the key trends in e-commerce. The system allows consumers to purchase products and services in installments even without a credit card or bank credit limit, via installment payments using Pix. This simplicity is attracting a growing number of users, but its benefits extend beyond the purchasing experience, as BNPL has become a conversion and loyalty accelerator for online businesses.

According to data from the DataFolha Institute, the global transaction volume via BNPL reached US$ 316 billion in 2023, with an annual growth of 18%. This number is expected to reach US$ 452 billion by 2027, growing at an average annual rate of 9%. This evolution demonstrates that the model is not merely a passing trend but a permanent revolution in consumption habits.

Countries such as Germany and Sweden are already benchmarks, with 21% of all e-commerce transactions conducted via BNPL. This penetration highlights the model's potential, which still has ample room for growth in emerging markets like Brazil, where access to credit is more restricted and consumers value simple and transparent alternatives.

For merchants, this means higher sales conversion, a higher average order value, and increased customer loyalty. In a competitive and saturated environment, offering payment conveniences can be the differentiator that turns a visit into a sale and an occasional buyer into a repeat customer.

Integration with Open Finance and Artificial Intelligence

The coming years will bring a new wave of evolution for BNPL. Integration with Open Finance will enable more precise and inclusive credit assessments, expanding the eligible audience and reducing default risks. By accessing open financial data, fintechs will be able to dynamically and in real-time evaluate a consumer's payment capacity.

Furthermore, artificial intelligence is already beginning to play a role in personalizing credit offers. Algorithms can automatically adjust limits, terms, and conditions based on each user's behavior, creating unique and more secure experiences. This personalization is one of the major strengths of modern BNPL, capable of balancing convenience for the customer and profitability for the merchant.

Direct Benefits for E-commerce

Implementing a BNPL solution brings a series of concrete advantages to e-commerce. The primary one is the increase in conversion rates, as consumers who previously abandoned their purchase due to lack of credit or insufficient card limits now have an immediate alternative. Consequently, stores that adopt BNPL record growth in sales volume, especially in higher-value categories such as electronics, fashion, and tourism.

Another benefit is the increase in average order value. Since the consumer does not need to pay the full amount upfront, they feel more comfortable purchasing higher-value products or adding extra items to their cart. This purchasing elasticity is extremely valuable during promotional periods and seasonal dates, such as Black Friday and Christmas.

BNPL also improves customer retention. Customers satisfied with the purchasing and payment experience are more likely to return, especially when they perceive transparency, security, and flexibility in the offered conditions. This reduces new customer acquisition costs and strengthens the base of recurring consumers.

Moreover, with the support of financial institutions and fintechs, the merchant does not assume the credit risk, as the operation is intermediated by specialized companies. This ensures payment and settlement for the e-commerce business within the agreed timeframe, while the BNPL provider manages the installments with the end customer.

Thus, through the combination of technology, data, and responsible regulation, BNPL is redefining credit and consolidating the future of digital consumption; a future where paying later is synonymous with shopping with greater freedom, confidence, and intelligence..