Tag: BNPL

A high-fashion purse and a smart watch, standing for buy now, pay later in the fashion industry

The Pros and Cons of Buy Now, Pay Later in Online Fashion Retail  

Christoph Laurer Leave a comment

Buy Now, Pay Later (BNPL) allows customers to buy something online, but pay for it after delivery. A BNPL payment can be made in installments over a period of time or as a full payment at a fixed date. Thus, the payment method is a novel variant of purchase on account, for short-term financing of goods. 

No traditional banking institutions have to be involved when paying in BNPL installments. What’s more, some BNPL companies even refrain from charging interest rates – a practice that banks still adhere to.

With the economic downturn threatening the margins of online fashion retailers, Buy Now, Pay Later can be a tool to keep customers happy in spending. 

In this article, we will have a look at the how and why. We will cover… 

  • Why the fashion industry is under pressure and how BNPL can help
  • What the core advantages of Buy Now, Pay Later are
  • What options you have when trying to get a Buy Now, Pay Later solution for your platform
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A picture displaying a clock and money, symbolizing buy now pay later payments

How to Build Your Own BNPL Solution

Christoph Laurer Leave a comment

Buy Now, Pay Later (also: BNPL) is shaking up the payment market. In 2020, it already made up 5% of annual e-commerce transactions, according to Bain & Company. And the trend is upward, as many online retailers plan to introduce BNPL payment options, as well. The key question for those companies is: 

What is the best way to set up a payment system that includes BNPL options? 

This boils down to the simple choice between turnkey payment systems by 3rd parties or a custom system built and run in-house.    

The first option is quicker and doesn’t require as much domain knowledge and development resources as the second one. However, it comes with disadvantages in the long run such as: 

  • Continuous fees that cut into revenue
  • Dependency on a third party regarding updates and features
  • Risk of so-called vendor lock-in, when the BNPL provider cannot deliver the service or changes the price structure, while no alternative provider is available
  • Possibility that the BNPL solution in question no longer fits the retailers’ business strategy as it evolves 

When building a custom payment system with Buy Now, Pay Later options, these problems can be avoided or mitigated. Companies are even better positioned with an e-wallet system, as BNPL processes can also be built on top of it. 

In this article, we provide an overview of how companies can build their own BNPL solution – and why this is even easier with a powerful e-wallet framework.

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