Daily Insights

Wait, I Can Buy Now and Pay Later?

By: Aadvik Jetley | Sep 03, 2019

Brands continue to pursue methods to ease the online check-out process—especially on mobile. 

Traffic to mobile check-out pages increased 12% since last year across brands tracked in Gartner L2’s Digital IQ Index: Specialty Retail. Integration of expedited mobile payment options increased accordingly, with 86% of tracked brands now offering at least one option. 

E-commerce is getting even more accessible through buy now, pay later alternative financing options, adopted now by nearly a fifth of specialty retail brands. Retailers like Banana Republic, Levi’s and Urban Outfitters all offer the option, with Abercrombie & Fitch and American Eagle announcing their plans to offer it soon.

MAC Cosmetics is one of the nineteen specialty retail brands that currently offer a buy now, pay later payment option. The beauty brand promotes an AfterPay option on category pages, as well as the homepage, primary navigation, product pages and of course, check-out. Credit-based payment options are prevalent amongst millennials, with almost one in every four millennials claiming to carry a balance on their credit cards for at least a year. 

Brands should carefully respond to this growing trend, and look to eventually integrate some form of financing options on their brand site. However, simply adding this feature to checkout is not enough, brands should keep alternative payment options front and center by integrating messaging throughout the site experience, and even within email and Instagram content.