This article was written by Mamta Rodrigues.
Most of our previous blogs have discussed the current state of CX, following a year that led to an economic disruption that shook the entire world. To date, we’ve covered how COVID-19 affected consumer behavior and working preferences, explored the many aspects in which the pandemic changed consumer spending, and how consumers’ channel usage and preferences have been impacted because of COVID-19. Teleperformance’s deep dive into the customer experience realm only intensifies as we continue to observe the latest customer experience trends in different industries—from healthcare, retail, online education, travel and hospitality, down to banking and finance.
As more and more consumers feel the need to adapt to—and survive—a massive economic disruption, many trends or changes have emerged in various sectors. Digital banking is experiencing a major lift, as consumers across different generations discover the many benefits and convenience it brings. Another trend that is slowly gaining momentum as a result of changing buying behavior is the “Buy Now, Pay Later” (BNPL) method. The reason behind this momentum is because people are looking for alternative payment methods and don’t want credit. This is largely due to the fact that these decision makers—mainly millennials—were young when the 2008/2009 financial crisis took place, and the effect on many families who suffered financial loses because of credit balances and mortgages. This is why they prefer and like to manage their funds, and BNPL allows them that.
The BNPL movement is currently making waves globally but let’s not forget that it has been around for years, especially in developed countries where there are lesser credit and many unbanked people. Nowadays, there is no doubt that this payment method is becoming popular—in an article from Business Insider, it was forecasted that the BNPL industry will rack up to $680 billion in transaction volume globally in 2025. With this, the future of payments may already be in sight. The comeback is largely due to the macroeconomic factors which resulted in an “impression” on credit being the last mile to a purchase (vs. the first). With more discerning consumers than ever before, many consumers see credit as the last resort for a payment and prefer a BNPL product as this allows micro-loans and a payment term which is perceived to be more manageable than a line of credit that allows revolving credit.
As a forward-looking company, Teleperformance remains driven by our passion to innovate and deliver optimal solutions that help our clients adapt to the changing behavior of their customers. For over four decades, our in-depth experience in the payments industry only continues to strengthen.
In our latest e-book, we put the CX spotlight on BNPL. BNPL products are here to stay, and the fintechs are leading the charge. We will share all in our e-book, from what exactly is BNPL and how does it work, to how the banking and fintech industry can pivot and support this growth while consumer needs expand as they look for hybrid products for payments. Our e-book also details a few advantages of using this payment product for both merchants and consumers, as well as the challenges it presents. Furthermore, you can learn more about Teleperformance’s BNPL solutions that can help your business improve, augment your fraud controls, support innovation, and protect your consumers and brand.
Download our free e-book today by clicking here.