Fidelity National Information Services: What’s the Next Step to Buy Now, Pay Later?

Buy Now, Pay Later (BNPL) is one of the many technological innovations that have grown in popularity in recent years, especially during the tough economic times brought on by the pandemic. While the idea of ​​this technology is not particularly new, its growing popularity with financial institutions, merchants and consumers is quite remarkable. Indeed, according to the Buy Now Pay Later Market Size & Trend Report According to Grandview Research, BNPL payment systems are expected to more than double in terms of payments market share growth by 2024, making it the fastest growing payment option.

The simple concept of being able to buy larger tickets and pay for them over time benefits everyone in the payments ecosystem. This has led cardholders to make more expensive purchases, increasing the average order value while capturing fees and interest income for issuers. Merchants also benefit from BNPL, as the technology helps increase sales volume and conversion rates by providing payment flexibility for high priced items that may remain in a buyer’s online shopping cart. Finally, consumers receive the greatest benefit as they now have point-of-sale options that will allow them to make the most informed financial decision when it comes to buying a high-priced item or filling a big one. grocery bill.

Where does BNPL go from here?

New regulations: Currently, very few, if any, US regulations deal specifically with BNPL. However, the Consumer Financial Protection Bureau (CFPB) has been pressured to take a close look at BNPL ahead of potential regulations, which means changes could come soon. This is where financial institutions and merchants can leverage technology providers to help them in a number of ways, including full management of their BNPL product, whether upstream or downstream.

Individualized experience: Merchants are making it increasingly easy for consumers to shop whenever and wherever they want, whether in stores or online, on a computer or on a phone. This idea of ​​making the consumer experience omnichannel also applies to the way these individuals want to pay for their purchases. BNPL gives cardholders the ability to make larger purchases and can increase card usage and preference by giving cardholders more choice and control. Organizations can use this technology to add additional functionality to differentiate their offering and increase consumer loyalty to their brand. In addition, using a BNPL card allows all of these transactions to be centralized, making it much more manageable and organized for the cardholder.

Stocks and crypto: So far, BNPL has made efforts to help ease the financial burden on consumers when making large purchases from different merchants. With the rise in popularity of the product, there may be application to other channels such as buying high value stocks and even investing in cryptocurrency. This would allow people to invest in stocks and cryptocurrencies based on their research and not the size of their salary.

SME: BNPL can certainly help small and medium-sized businesses offer the same payment flexibility to their consumers. This technology should be seen as a way to level the playing field between large traders and SMEs. Consumers can now decide where to buy a high priced item on where they prefer to shop instead of worrying about how they will pay for the purchase.

How can a tech company like FIS help organizations with BNPL?

FIS is focused on providing options to everyone involved in the payments ecosystem. These options include after-purchase installment loans for high-priced items, a real point-of-sale option, and a real card that allows consumers to tap BNPL regardless of the merchant’s proposition. These different options deliver the omni-channel experience that is so essential to increasing consumer loyalty while also providing the flexibility that buyers need to make large purchases.

For more information on FIS’s Buy Now, Pay Later – Post Purchase solution and to see how it will develop new revenue streams and build strong, long-term relationships for your institution, email getinfo @ or call 877.776.3706.

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