“Buy now, pay later” is popular! Etsy expands BNPL service range again

BNPL (Buy Now Pay Later) is what we call "buy now, pay later". This consumption model provides consumers with a short-term payment plan, allowing them to buy first and then complete the subsequent payment. This payment method is currently becoming popular abroad. Consumers in many countries will give priority to this payment method when shopping.

Etsy, a large e-commerce platform   Recently announced that it will cooperate with the third-party payment platform Klarna   The partnership will expand the BNPL service to Spain and Australia. Etsy already provides this service in the United States, the United Kingdom and Germany.

The BNPL expansion plan was launched just before this year's holiday shopping season. Consumers can get the products they want immediately even if they don't have enough budget, which is expected to bring more sales to the platform.

The terms of service for BNPL vary from country to country. Spanish buyers can choose to pay in three interest-free installments between 50 and 1,000 euros. The first installment is paid at the time of purchase, and the other two installments are paid every four weeks until they are paid off.

For Australian buyers, Etsy will provide four interest-free installments for orders between $50 and $1,000 (AUD). The first installment is also paid at the time of purchase, and the remaining three installments are paid every two weeks until the balance is paid off.

When using the BNPL service, buyers in Spain and Australia can combine orders from multiple stores on the platform and pay them in installments.

More and more companies and sellers have joined the BNPL track. Especially in the United States, emerging electronic payment companies such as Affirm, Afterpay, Klarna, PayPal, Uplift, etc. have already supported this payment model.

The more payment methods an e-commerce platform provides, the more diverse consumers it can attract. Expanding other payment methods is also expanding more consumer groups.

The diversification of payment tools can also mean the diversification of the sources of e-commerce data platforms, which is also very helpful for sellers to analyze consumer psychology and adjust sales models in a timely manner.

Although for consumers, the BNPL payment method has lower interest and eliminates procedures such as credit card review compared to credit card installment payments, it is more convenient to operate and use.

However, this payment model also has its drawbacks. Some consumers may overspend , resulting in the inability to repay. This is also a loss for the merchant's funds. Therefore, BNPL is also a "double-edged sword", and consumers and sellers should pay more attention when using it.

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BNPL