How BNPL Is Reshaping the Future of Digital Banking
Digital banking has changed the way people interact with their finances. From managing bank accounts to making payments, everything has been digitized as it is more convenient. The best thing about digital banking is that it doesn’t seem to stop at modernizing the traditional banking services; in fact, it keeps introducing new and innovative ways. One such innovation is the BNPL solution.
Buy Now Pay Later is a financial service that has simplified the online shopping and payment experience for millions of users. With the help of a BNPL provider, a customer can buy goods and services online and pay for them conveniently by breaking down the total amount into easy monthly installments.
This way, the customer is less reluctant while finishing the transaction, and businesses have better sales.
The idea behind BNPL services is to make credit accessible to more and more users, even to those who are unbanked. With NBFCs offering buy now, pay later services at competitive rates, there are several options available to customers.
BNPL is a trend-setting financial service that has reshaped the future of digital banking. In this post, let’s take a look at how!
4 Ways BNPL is Reshaping the Future of Digital Banking
There’s no doubt that BNPL brings along financial flexibility for the users. However, did you know that BNPL directly impacts various aspects of e-commerce and consumer behaviour?
Here are 4 ways BNPL is changing the way people use digital banking –
-
Attractive Online Experience
BNPL simplifies the online payments and shopping experience for users. The best example of this is BNPL on e-commerce platforms and shopping websites.. Not to mention, since people use BNPL, they get a better limit to spend, which bumps up the average order value for the platforms, benefiting them in sales and revenue. Even the stats from any top mobile banking app development company can clear the picture about how attractive these services are.
-
Expanded Customer Base
Since these applications make it easier for users to pay for the services, they attract more and more customers. You see, BNPL services are also available for people who are unbanked or are not directly eligible for traditional credit cards. Allowing a platform to tap these users, the overall user base is certainly expanded, making financial services more accessible and popular among e-commerce users. The more users are attracted, the better revenue is generated, allowing digital banks to capitalize.
-
Competitive Edge
BNPL services are the talk of the town. Every user today is choosing a bank or a financial services provider that includes BNPL services, as it allows users to pay freely and buy things at their convenience. It also means that if you want your financial institution to be more appealing to new users, integrating the buy now, pay later services can offer you a competitive advantage.
-
Promotes Embedded Finance
If we talk strictly from the perspective of digital banking and reshaping the way financial services will be used in the coming years, embedded financial services is the top trend. Looking at the way BNPL is being used in service applications as an integrated feature, it won’t be long before every industry will start using embedded finance to offer digital banking services to their customers without having to redirect to a third-party banking platform.
All the aforementioned factors directly reflect that BNPL is paving the way for modern-day digital banking solutions. The rise in use of BNPL services has also contributed to the growth of BNPL as a business, as many existing and new financial service providers have already entered into offering BNPL. The market is lucrative, hence hiring a BNPL app development company and building a solution for your financial institution can be a great decision.
Parting Words: BNPL is the FUTURE
The idea of buy now, pay later allows a user to be more open towards spending more and placing higher-value orders without thinking twice. Sure, this also means that users should monitor their expenses and balance their credit usage. However, if we take a look at the bigger picture, BNPL is opening new doors for embedded financial services, which can be a game changer in decentralized financial services.
It is also important to acknowledge that BNPL has already brought in hundreds of thousands of users towards financial services, hence, it may not be wrong to say that BNPL is reshaping the future of digital banking and financial services.
