Why you need to offer BNPL in the holidays season

As the holiday season approaches, everyone is in the gift-buying and gift-giving mode. The gift-giving exercise can get expensive, particularly for people with huge families and lots of friends! This can cause a strain on their wallets and money pots!

Hence a payment option such as Buy now, pay later, where one can buy gifts now without having to pay the full price in one go would be fantastic. This is where cashew comes into the picture.

What is Buy Now, Pay Later?

Buy now, pay later (BNPL) is a payment plan that allows customers to spread their costs over a short period in installments. When they make a purchase, they pay a small amount at the checkout as the first installment, after that paying the rest in installments according to the selected payment plan. 

The installment payments are billed to the credit or debit card that is selected at the time of making the purchase. All there is to it is to fill out a quick application form at checkout with customer details and get ready to use the BNPL services. cashew services can use the cashew installment service online and in-store. 

This is an excellent form of payment, particularly during the holidays as customers can buy the best gifts this season without paying the full amount up front! And without having to wait until payday to buy gifts!

The holiday season and BNPL

The holiday season is an ideal time to offer BNPL as it's the gift-giving season, and everyone wants to give thoughtful gifts to their loved ones, but personal budgets can come in the way. Hence the option of flexible payment plans is the way to go! This offers ease of payment, especially on higher item values such as Christmas and holiday season gifts. cashew does not put in sneaky hidden fees or additional charges to use their services! Pay only the price of the item, which is great! The approval process by cashew is almost instant, which is convenient as it doesn't cause a delay for merchants in processing the orders. The instant approvals also reduce the lag for customers in getting their hands on their items, in time for the holiday season!

The holiday season is when families get together, go out, spend money, and have fun. Financial stress can easily creep in, making things uneasy! This is when the flexibility of the payment plans solves this burden! cashew offers 3, 6 and up to 12 interest-free installment plans customers can choose from, enabling them to have a happy festive season!

How customers and merchants benefit from BNPL

Almost half of the Gen Z millennials are opting for buy now pay later services. The services saw a 27% rise in revenue in 2021 and continue to rise as buy now pay later is becoming a popular payment method, particularly for online shopping.

According to CNBC, shoppers will use the buy now pay later payment method during the upcoming holiday to get their pay later holiday season gifts!

According to FinTech News, 53% of shoppers and consumers in the region will use buy now pay later services in 2022. These figures keep increasing just as digital payment methods are rapidly growing and becoming the favorite payment method for most consumers.

BNPL is becoming even more popular!

Reuters have reported that cashew Chief Executive Ammar Afif expects 50,000k users and 5,000 merchants to engage and use cashew services. 

Mashreq predicts the number of buy now pay later in the UAE is set to increase by 60-80% in 2022 compared to the previous year. The holiday season is a time when these figures shoot up drastically, and therefore the best time to offer the services. 

In 2021, many consumers were interested in getting their loved ones holiday season gifts using buy now pay later methods. In fact, the pandemic caused a huge spike in these forms of payments online, as online/digital shopping methods were used. 

According to pymnts, shops that offer buy now pay later options saw that customers were more willing to spend up to $200 or more. 46% of customers said that they would spend less in the holiday season if buy now pay later options were not available, showing a significant decrease in willingness to spend!

Business owners would benefit from buy now pay later, as the willingness to spend by customers would lead to greater profit for businesses in the holiday season. 

Jump on the bandwagon and take advantage of cashew's buy now pay later payment plans for this holiday season!