Buy Now, Pay Later providers like Zip have taken the world’s shoppers by storm by offering no-interest shopping and the opportunity to pay off purchases at a later date.
SYDNEY, AUSTRALIA, March 17, 2021 /24-7PressRelease/ — While many have converted to this style of paying for purchases, there is evidence that customers are not yet showing loyalty to one particular provider. Zip has stated that about 60% of Buy Now Pay Later (BNPL) shoppers are using 1 or more of the BNPL apps.
The main reason for this seems to be the monopoly that some BNPL providers have over certain retailers. This occurs when there is only one option for BNPL payments at checkout. In this case, many shoppers are signing up with multiple apps in order to be able to use the service at all of their favourite stores.
While some services are offering their Buy Now Pay Later program exclusively for use online, others are offering the potential to use your account in-store as well. We’ve seen this from companies such as Zip, who are offering their Tap & Zip addition which allows users to pay with Zip wherever Google Pay or Apple Pay are accepted.
This venture into credit card territory has marked a new era of expansion for the financial powerhouse and casts a wider net across retailers that can accept BNPL accounts at points of purchase.
There are other reasons for dual-apping including signing up to receive incentives from multiple programs as well as preferring different repayment schedules. This could also be seen as a way to spread out payments even further.
Shoppers have also stated that some BNPL providers are preferred for larger purchases while some are better for smaller purchases. This could also be the case with recurrent purchases. Zip offers a BPay program for payment of household expenses such as bills.
It’s too early to assess if dual-apping will continue or if throughout the lifetime of their subscription to these services, people will start to show loyalty to one particular BNPL provider.
We assume that this will be a major factor in the promotions and offerings we will see from these companies in the near future as they fight to win trust within a new and competitive industry.
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