Most users abandon purchases without preferred provider
A recent study by Zip, a digital financial services company, found that 83% of U.S. buy now, pay later users with a preferred provider would likely abandon a purchase if their preferred provider were not available at checkout.
Nearly half of the surveyed users have already abandoned a purchase in the past year due to their preferred provider not being available.
Among those who abandoned a purchase, 39% went on to buy from a different retailer, and 75% of abandoned carts had a reported value of $100 or more.
Rory Herriman, President and Interim CEO of Zip US, stated that payment choice is not just a checkout feature, it shapes where consumers choose to shop, and that offering the right payment options can create better shopping experiences and reduce the risk of losing customers.
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The study also found that 65% of shoppers with a preferred provider say it is extremely or very important that a retailer offers it, and 59% have chosen one retailer over another because it offered their preferred BNPL.
Additionally, 73% of all surveyed BNPL users consider BNPL before they reach checkout, and 62% have used BNPL for a purchase they otherwise would have postponed or skipped.
With the holiday shopping season approaching, Zip encourages merchants to consider three steps to keep shoppers who plan on using BNPL: Show BNPL options early, not just at checkout. 73% of surveyed BNPL users consider BNPL before reaching the cart. Keep checkout simple. An easy-to-use app and an easy checkout experience are among the top reasons shoppers with a preferred provider choose their BNPL.
