Buy now pay later (BNPL) space might attract BNPL providers to foray into cross-border BNPL

Print

Email

Customers' shopping habits have continued to evolve over time, making room for new innovative payment streams globally. However, increased scrutiny from the regulators has made the situation volatile in past quarters. In contrast, seeing high growth prospects, BNPL players have been capturing other sectors to gain market share. With the boom in the e-commerce industry, BNPL providers are foraying into the cross-border shopping space, improving the customer experience as well as driving merchant sales over the long run. For instance,

BNPL providers are introducing BNPL cross-border Pay for merchants driving merchant sales

Since cross-border trade enables the retailers to open their storefronts to the world, attracting new customers without additional set-up costs or fees, BNPL providers are launching cross-border options for merchants. For instance,

• In November 2021, Afterpay introduced cross-border capabilities for the United States' consumers to shop from Canadian merchants. With Afterpay's largest customer base of United States shoppers, Canadian merchants are expected to draw new customers over the longer run.
• In 2020, Afterpay first rolled out cross-border options for the merchants to sell their products to consumers in Australia, New Zealand, the United Kingdom and Canada. This will enable the shoppers to see items in their local currencies and pay in four installments with no interest, fees or revolving debt.
• The BNPL provider noticed that the merchants of Australia and New Zealand were selling ten times more outside their countries than they used to after the introduction of cross-border shopping in these countries.

PayNXT360 projects Afterpay's seamless integration of online platforms and the transparent currency-adjusted pricing structure to help the merchants to see more conversions from clients over the longer run. 

BNPL providers are launching cross-border BNPL solutions for the Middle East

With the growth of international e-commerce, BNPL providers offer cross-border trade to open and exhibit their storefronts to international markets with popular payment methods. For instance,

• In March 2021, the Middle East and Central Asia- based fintech, ZoodPay, launched the first cross-border BNPL solution for the Middle East. This will enable the merchants from China, Russia, Europe, and Turkey to offer a BNPL solution to shoppers in this region.
• Now, this unique offering will enable the merchants to open their storefronts, promoting and selling their products to new shoppers through the ZoodPay ecosystem. Without additional set-up costs or fees, the merchants can now reach new markets such as Uzbekistan, Kazakhstan, Iraq, Jordan, Kuwait and Saudi Arabia.
• This cross-border trade will enable shoppers to purchase products in their local currency and the flexibility of receiving the goods and paying for them in installments later without incurring any interest or fees.
• ZoodPay supports the merchants with full-operational logistic support for product delivery through ZoodShip. In addition to this, merchants also have an option to create demand generation and marketing for their products through the ZoodMall marketplace.

Since, ZoodPay will enable merchants with a unique one-stop value proposition aligning them with new customers with higher order value by offering secure, flexible and popular payment methods, PayNXT360 expects the BNPL provider to attract significant merchants over the next four to eight quarters.

Global cross-border payments platforms are entering into partnerships with BNPL platforms

BNPL solutions are observing accelerated adoption and strong consumer demand globally. Therefore, global cross-border payments platforms partner with BNPL providers for revenue growth, enhanced customer experience, and positive economic impact. For instance,

• In March 2022, Thunes, a cross-border payments provider, announced entering a partnership with BNPL service provider Clearpay. The BNPL provider, Afterpay, is known as Clearpay in the United Kingdom and Europe.
• Through this partnership, Thunes will be able to offer Clearpay's BNPL solution to their network of gateways, merchants and marketplace partners, unlocking even more value for merchants and consumers across the globe.

With the increasing popularity of BNPL plans of Clearpay among the customers, Thunes partnered with the BNPL provider to benefit the merchants with improved basket conversion, brand exposure and lifts in average order value. Therefore, PayNXT360 expects, from the medium to long-term perspective, ClearPay's easy-to-use solution to create significant demand from the merchants for their service.

To know more and gain a deeper understanding of the global BNPL market, click here.