The Growth of BNPL:
Expanding Beyond E-commerce

Before Buy Now Pay Later (BNPL) took its throne in the payments industry, payment options were more limited, as customers could either make purchases with suitable assets or risk debt with a credit card purchase. Since BNPL has become more popular in the past few years, its flexibility and straightforward requirements have made it all but synonymous with e-commerce, and the demand for flexible payment options only continues to grow.

Grand View Research projects that revenue in the BNPL industry will reach $38,572.4 million by 2030, growing at a CAGR of 26.1%. Moreover, Capital One’s report expects the BNPL user base in the US to increase from 94.4 to 104.6 million by 2026.

Fundamentally driving this growth has been the ability of BNPL to expand beyond e-commerce. Offering alternative financing solutions that meet customer needs, BNPL shows great potential to provide payment solutions in non-traditional industries like healthcare, travel and hospitality, education and e-learning, media and entertainment, and food and beverage.

Shrewd payment solution providers and independent software vendors can incorporate BNPL solutions into their offerings to differentiate themselves from competition, harnessing BNPL benefits to increase the value of their services, attract new clients, unlock new sources of revenue, and promote innovation in any industry.

Heal Now, Pay Later

The growth of BNPL across sectors is already advancing the healthcare industry. In fact, according to Forbes, the price of medical care alone has increased by over 114% over the past decades. Coupled with today’s rising cost of living, many patients are forced to delay critical healthcare treatment to meet other more immediate needs. But with medical bills being the third main contributor to credit card debt, credit cards have proven to be a failed solution to this problem.

Because it increases access to services not typically covered by insurance and helps patients make healthcare payments, BNPL is providing answers to these concerns.

Integrating BNPL as a more flexible payment option increases patient access, cash flow for providers, and patient retention by reducing financial strain and delayed care.

BNPL can be used to cover medical procedures, prescription payment plans, a variety of services, fitness and cosmetic-related procedures, emergency care, and more. Clinics, elective treatment centers, dental offices, and other small-to-medium-sized healthcare businesses can especially seize these advantages to meet the specific needs of their patients and exercise greater agility.

Payment solution providers and independent software vendors can tailor BNPL solutions for healthcare to enable flexible payment options, improve patient access, enhance cash flow, and reduce treatment delays for healthcare providers, setting their services apart by addressing critical financial pain points.

Travel Now, Pay Later

BNPL can also benefit the travel and hospitality industry, simplifying the booking process by offering travelers a budget-conscious option to “book now and pay later.” Travel budgets are regularly the first to tighten in response to high costs of living, but with BNPL, consumers can still achieve their destination dreams and necessities. BNPL increases booking rates, enables larger purchases, and improves customer loyalty. Using services like Uplift, the top-rated BNPL for travel, travelers can spread hotel costs over monthly payments, pay for flights in installments, afford long-term car rentals, and avoid the fees that come with credit card payments.

A $7,000 all-inclusive, 10-day travel package to Europe could be broken down, for example, into an initial payment as low as $1,000, with the rest of the balance split into six equal payments, making international travel much more feasible. Alternatively, BNPL could be used to cover travel insurance, easing stress by splitting costs up over time. Finally, the large upfront costs of other travel options, like group travel or cruise bookings, can be mitigated with BNPL options.

Payment solution providers and independent software vendors can target their BNPL solutions for the travel and hospitality industry, enhancing the value of their services by offering travel service providers the ability to seize the unique BNPL benefits of increased booking rates, average purchase value, and customer loyalty.

Learn Now, Pay Later

As online learning grows in popularity in a post-pandemic world, new flexible payment options are becoming more significant. An AWS-sponsored report found that younger generations were highly interested in using BNPL to offset the costs of their education.

By spreading out payments for courses, training, and certification programs, BNPL can help make education more accessible for online learning, trade schools, certification programs, and universities.

For example, instead of having to pay for an expensive e-learning course all at once, a prospective student could pay in installments, learning as they go. Splitting a $500 online coding course into four equal payments spread over multiple months could greatly increase the number of students able to take the course. BNPL could also apply to study abroad expenses, software or textbook expenses, and learning subscriptions to expand enrollment, increase retention, and appeal to a more financially diverse array of students.

Compelling companies in the education industry, payment solution providers and independent software vendors can offer BNPL-enhanced payment solutions to address affordability challenges, making education more accessible and inclusive to drive enrollment growth and student retention.

Enjoy Now, Pay Later

Media and entertainment is another area where BNPL can enhance customer experience and accessibility. Capital One reports indicate that electronic entertainment is a significant category of BNPL spending, with 62% of young adult consumers using BNPL to purchase video gaming consoles.

The obvious application is that BNPL allows customers to pay for concert tickets, movie tickets, and other events in installments. However, BNPL can also help customers manage annual streaming or newspaper subscriptions, finance high-cost purchases like gaming consoles, or even purchase NFTs. Ticketing platforms, streaming services, gaming companies, and live event organizers can all benefit from the higher conversion rates and increased audience reach that BNPL makes possible.

By increasing purchasing power and providing flexible payment options for subscriptions, event tickets, premium content, and other merchandise, BNPL integration can help payment solution providers and independent software vendors competitively distinguish their services, offering media and entertainment companies multiple perks, from appealing to younger, more tech-savvy audiences to boosting customer satisfaction.

Eat Now, Pay Later

Finally, the food and beverage industry can also harness BNPL to increase customer satisfaction, loyalty, and purchases. The application becomes especially useful in high-cost areas, such as high-end dining or the purchase of specialty foods or drinks. With BNPL, a wider range of customers can experience luxurious food and beverage experiences, from gourmet dining to efficient food delivery services.

Catering, for example, is one highly exclusive service that can become more feasible with BNPL. A $5,000 catering service for a once-in-a-lifetime event, like a wedding, could become more affordable split into monthly payments. The costs of premium wines can also shoot up into the hundreds, offering another opportunity for BNPL to make purchasing easier. Additionally, with the New York Post reporting that 15 million people used BNPL plans to pay for groceries in 2023, BNPL can assist with everyday food and beverage purchases as well.

Leveraging the opportunity to increase revenue and expand customer reach, payment solution providers and independent software vendors can position BNPL integration as a key differentiator enabling their solutions to help companies in the food and beverage industry address the growing demand for flexible payment solutions for everyday necessities.

BNPL Enhances Any Industry

In general, integrating the innovative payment technology BNPL can enhance any business by driving higher average order values, increasing conversion rates, and attracting more customers. With the right BNPL integration partner, any company can enjoy the benefits of upfront payment and reduced need for discounting, so long as they follow the appropriate steps to clearly communicate the necessary information to customers.

Payment solution providers and independent software vendors can integrate BNPL into their solutions to offer its competitive benefits to companies in any industry, addressing the urgent need for flexible, customizable, and scalable payment solutions. Increasing average order value by up to 40%, sales by up to 30% and conversion rates by as much as 25%, integrating BNPL is a decision that will define the value of provided payment services.

BNPL can boost customer acquisition without sacrificing profits, speed up buyer commitment, and integrate with other tools to streamline sales processes. Flexible to diverse business needs, BNPL integration can help any organization meet customer needs and increase their sales. Try it now to reap the benefits later.