Why offering BNPL makes sense for banks and credit unions

Amid heavy credit card competition, the best way to stand out is to provide an excellent customer experience. Here’s why offering buy now, pay later as a payment option is one of three steps your financial institution should consider as part of that effort.

Credit cards are ubiquitous these days. A whopping 82% of Americans have them, according to a May 2023 report from the Federal Reserve. So, for banks that want to keep their credit card top of wallet, mastering the customer experience is critical.

A major hurdle to achieving that goal is that the ideal customer experience varies dramatically, depending on a variety of factors, including some that are unique to each generation. But some trends apparent across generations include a growing demand for improved cash flow management, flexible payment options and personalized experiences.

In light of these trends, one payment option that more credit card issuers are starting to offer is buy now, pay later.

 

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