Leading ‘Buy Now, Pay Later’ Platform Poised To Save Users $459 Million in 2021

filadendron / iStock.com

A new report from research firm Accenture reveals that the “Buy Now, Pay Later” platform Afterpay could save consumers as much as $459 million through 2021 by using BNPL instead of a credit card. This equals roughly $6 per order.

Prepare Now: 10 Supply Shortages That May Happen Again This Year
Senior Stimulus: How an Additional $1,400 Check Could Help Social Security Recipients Afford Rising Grocery Costs

The study found that Afterpay users are more than twice as likely to pay their bill on time compared to credit card users, which can save money in both credit card late fees and interest payments. While BNPL payments aren’t reported to the credit bureaus, avoiding late credit card payments by using BNPL can still help preserve your credit score. A high credit score can earn you lower interest rates on everything from loans to car insurance, saving even more money.

It’s not just consumers who are benefiting from BNPL services, the study showed. The Afterpay platform has driven $8.2 billion in incremental sales for retailers and other businesses. Afterpay fashion spending totals 6.5% of all U.S. fashion e-commerce.

Related: Most Holiday Shoppers Will Buy Online — And Start Early

The study found that the increased sales were sparked by:

  • Improved online checkout conversion rates
  • Larger customer basket sizes
  • Exposure to new customers
  • Increased customer engagement
  • Increased repeat purchases
Make Your Money Work for You

Merchants also saved money by offering the platform as a payment method. The study showed that businesses saved $590 million in 2021, with nearly half of that savings coming from reduced customer service costs.

See: 4th Stimulus Payment of $1,400 Not Off the Table Entirely Thanks to Inflation
Find: 60% of Americans ‘Buy Now, Pay Later’ — But Is This Shopping Fad Too Risky?

To date, nearly 100,000 retailers use the Afterpay service, which was named by GOBankingRates as one of the top five “Buy Now, Pay Later” services of 2021.

Last updated: October 7, 2021

About the Author

Dawn Allcot is a full-time freelance writer and content marketing specialist who geeks out about finance, e-commerce, technology, and real estate. Her lengthy list of publishing credits include Bankrate, Lending Tree, and Chase Bank. She is the founder and owner of GeekTravelGuide.net, a travel, technology, and entertainment website. She lives on Long Island, New York, with a veritable menagerie that includes 2 cats, a rambunctious kitten, and three lizards of varying sizes and personalities – plus her two kids and husband. Find her on Twitter, @DawnAllcot.

Best Bank Accounts of May 2022

Untitled design (1)
Close popup The GBR Closer icon

Sending you timely financial stories that you can bank on.

Sign up for our daily newsletter for the latest financial news and trending topics.

Please enter an email.
Please enter a valid email address.
There was an unknown error. Please try again later.

For our full Privacy Policy, click here.