Gen-Zs, Millennials and the rise of BNPL services

The Buy Now, Pay Later (BNPL) trend is steadily growing in popularity, specifically in Southeast Asia. By the end of 2021, the market forecast is that BPNL will have an estimated 340 million users, set to increase to 1.5 million by 2026.

This is a heads up for businesses looking to market to Gen-Zs and Millennials. This report shows those in their 20s-30s propel this growth. For merchants looking to target this market, you’ll need to offer the BNPL payment option at your point of sale to capture this consumer segment.

How can BPNL support your business growth?

In our blog post on how digital payments are changing Southeast Asia, we listed BNPL amongst the future trends of digital payments.

But how can offering BNPL payment help your business to grow?

First, let’s understand the fundamentals behind this payment solution. The concept of Buy Now, Pay Later allows consumers to tap on flexible payment plans in exchange for affordable purchases.

These services are generally accessible via mobile applications, used at the point of sale (POS) to split a payment into 3-4 monthly, interest-free instalments (when paid on time), track purchases, and manage bills.

What is the difference between BNPL firms and credit card companies? A credit card is a link between bank accounts. For instance, your Visa or Mastercard issues you a certain amount of credit, eventually deposits money from your bank into the merchant account.

A BNPL provider such as Atome or BillEase is a linker and banker. Since it plays both roles, it gives new merchants a quick way to onboard without traditional banking procedures.

On the customer’s end, BNPL encourages sales that wouldn’t happen if customers had no credit – increasing sales conversion rates for merchants. Additionally, BNPL solutions such as Atome or Billease offer interest-free or low instalment rates. These accessible propositions are enough to attract new users.

At the same time, customers now have apps from BNPL providers that regularly highlight merchant promos to them, further increasing repeat business. The apps also provide users with a way to check their account status. This transparency gives them more control over their spending.

This is necessary, especially in Southeast Asia. The research shows that 49% of urban consumers in the region who are bank customers already use e-wallets and prefer digital payments over credit cards. Therefore, it’s no surprise that the BPNL market, which combines the convenience of an e-wallet with the luxury of a delayed payment option, looks set to expand.

Who does BPNL attract, and why is that important?

BNPL offers relief for credit-starved Millennial and Generation Z consumers, especially if they aren’t eligible for credit cards but need an economical way to purchase big-ticket items.

The underbanked group in Southeast Asia who are in this age category will also greatly benefit from BNPL payment options. The numbers show that many Southeast Asians are ‘underbanked,’ i.e. not well-served or have unmet financial needs such as no access to credit cards.

In Vietnam, for example, the underbanked group is made up of about 15 million from the middle class, according to Google’s trend report. In contrast, a survey suggested that BNPL payments in the country were expected to grow annually by 137.3 per cent (US$491.3 million) in 2021.

Elsewhere in Southeast Asia, BNPL payments in the Philippines are expected to grow by 109.7% annually to reach US$ 803.5 million in 2022. These substantial growth numbers indicate that for young Southeast Asian consumers, BNPL has become an attractive payment option.

By offering BPNL as part of your payment option, you are positioning your business in the sweet spot to reach out to these Millennials and Gen-Zs, especially those who cannot or don’t want to rely on banks for a credit card.

Qashier integration with Atome and BillEase

The BNPL business model offers lucrative revenues for businesses already on Atome or BillEase. For example, if you’re a Qashier Smart POS client, your customers can easily purchase any goods or services in your shop.

All they need to do is to use their Atome or BillEase apps on their mobile phone to scan the QR code on the terminal to pay.

They can then choose the instalment options from their mobile apps. It’s simple – you must select the BNPL payment method on your Qashier smart POS to generate the QR code.

Any promotions or discounts would be automatically included when you set it up on the smart POS terminal. There is no approval waiting or verification checks you need to carry out as a merchant. That’s how seamless and fast the transaction is.

What about other payment options?

The good news is, Qashier is now integrated with PayNow. If you’re based in Singapore, this is one of the most popular e-wallet payments. Apart from that, Qashier Smart POS allows merchants to tap on any payment method, from credit to debit cards to other e-wallet options.

Whether using the QashierX1, QashierXL or Qashier Pay Smart POS terminals, your business and customers can look forward to cashless, fuss-free transactions.

Our Smart POS solutions can handle different operational aspects, from QR code table ordering to table management (F&B), employee management, customer relationship management (loyalty programs), inventory management, data analytics, and cashless payments.

Qashier promises a seamless setup within 10 minutes without needing technical expertise. It boasts an user-friendly interface that is simple for anyone to learn and use. You’ll find 7-days-a-week responsive technical support from the local team if you require assistance.

Qashier is also affordable, with prices starting from as low as SGD1/day (in Singapore with a PSG grant), and this includes hardware, software, setup, training and 7-days-a-week local support.

Speak to us to see if Qashier’s Smart POS can meet your business needs. Find out how Qashier’s Smart POS can meet your business needs. Schedule a meeting with us here, call us at (+65) 3165 0155, WhatsApp (+65) 8882 8912, or email [email protected].



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