AbonnéBusinessFeature

The increasingly perilous “Buy Now, Pay Later” (Episode 3)

Cristina D’Agostino

By Cristina D’Agostino21 janvier 2021

While deferred payment is not new, luxury goods bought through leasing arrangements is a strong trend that has increased with the pandemic. This instalment method, flexible and free from initial interest rates, offers immediate satisfaction to consumers. On the flip side, it would lead to over-indebtedness.

USD 353 B

of transactions via BNPL in 2019 worldwide

USD 680 B

of transactions via BNPL in 2025 worldwide

80%

of consumers via BNPL are GenZ and Millennials

According to Affirm, BNPL solutions are expected to triple over the next two years (Shutterstock)

This is one of the most important accelerations of the past years. Already used for more than a decade, the “Buy Now, Pay Later” method, or BNPL, has experienced an important increase with the creation of many platforms offering this financing model to brands, and therefore to consumers. In all sectors, the total transaction value of BNPL will increase from 353 billion dollars in 2019, to 680 billion dollars in 2025 around the world, according to Kaleido Intelligence.

For Karine Szegedi, associate at Deloitte and luxury sector specialist, the trend is clear: “The BNPL program has certainly been one of the biggest trends of the retail market last year, accelerated by the pandemic and its

Pour continuer à lire cet article, abonnez-vous maintenant

CHF 10.- par mois / CHF 99.- par année

  • Accès illimité à tous les contenus payants
  • Des analyses approfondies sur l'industrie du luxe que vous ne trouverez nulle part ailleurs.
  • Des études et rapports sur les principaux défis à venir ainsi que leur décryptage.
  • Des articles académiques élaborés par des professeurs et des doctorants membres du Swiss Center for Luxury Research, ainsi qu’un certain nombre d’universités à l’étranger.
  • Des événements réservés aux membres pour enrichir vos connaissances et votre réseau.

Partager l'article

Continuez votre lecture

See now, buy now: the new luxury business model (Episode 1)
Strategy

See now, buy now: the new luxury business model (Episode 1)

The “see now, buy now” trend reflects the desire for immediacy that animates young luxury customers. It’s a revolution based on complex psychological mechanisms, it plays out on social media platforms and has been boosted by the COVID-19 pandemic. Luxury Tribune takes a deep dive into this new shopping experience. Here’s episode one of four.

By Fabio Bonavita

See now, buy now: from impulsive shopping to compulsive shopping (Episode 2)
Strategy

See now, buy now: from impulsive shopping to compulsive shopping (Episode 2)

What are the psychological cues that push luxury consumers to buy with one click? One thing is certain, there must be a lot, considering that 95% of our brain’s activity is unconscious. With one threat that looms large over these new buying habits: oniomania, also known as compulsive shopping disorder.

By Fabio Bonavita

S'inscrire

Newsletter

Soyez prévenu·e des dernières publications et analyses.

    Conçu par Antistatique