Klarna, Clearpay & Afterpay — are they the future of shopping?

By 2026, spending via BNPL services is predicted to reach almost $51bn (£37bn) in the UK alone.

Globally spending will reach $995bn in five years’ time, almost four times the current figure. Even more modern banks such as Monzo, who are currently favoured by the younger generations have begun rolling out a BNPL service to their 5 million-plus customers. Revolut also confirmed it was in the process of developing a BNPL feature for Europe. Icons and giants have also joined the market with Goldman Sachs spending $2.2bn (£1.6bn) to acquire GreenSky, a BNPL fintech which emphasises spending for home improvements rather than retail.

Brands should consider including BNPL features on their eCommerce stores in the near future, in order not to be left behind with the current trend. By including a delayed payment scheme shop owners will see an increase in conversion rates, ROI and basket size. Some eCommerce providers like Shopify have introduced their own BNPL offers with “Shop Pay Installments” which provides consumers with their sought after flexibility. Shopify’s BNPL has been proven to boost sales with current merchants claiming 50% higher AOV (average order value) compared to other payment methods. In addition, merchants saw 28% fewer abandoned carts.

The popular term coined “don’t wait until payday” all over Instagram and social media has influenced both businesses and consumers to sign up for their interest-free, 30-day lending. ASOS, H&M, Superdry, Pretty Little Thing, Schuh, New Look and hundreds of other retailers in the UK have linked with the BNPL payments firm. The companies make their money by charging the retailer rather than the customer. Their variable fee ranges anywhere from 3.29% to 5.99%. The seamless shopping experience allows merchants to increase their conversion rates, simply by removing financial friction and abandoned baskets as well as having a trusted payment processor enabled.

Ultimately, BNPL results in bigger checkouts, fewer abandoned shopping carts, and happier return customers as they can flexibly shop.

Have something in mind?

Stay up to date

London, UK
London, UK
Truro, UK
Kyiv, Ukraine
Amsterdam, NL
London, UK