Buy Now, Pay Later (BNPL) continues to be a popular payment method in the UK as new research from Mollie reveals that consumers in the country are leaning on it more than ever.
The payment service released its latest European Ecommerce Report which highlighted how spending and payment behaviours are shifting in the light of the current strain of the economic climate.
Surveying 5,000 consumers in the UK, as well as Belgium, France, Germany and the Netherlands, BNPL shows no signs of slowing down, particularly as a viable and flexible payment method as consumers are saving more due to the cost-of-living crisis.
Mollie revealed that 64% of UK users reported an increase of their BNPL payments in the last 12 months. However, this reliance on the payment method may give credence to the 61% of Brits surveyed who believe their country’s economy will not improve.
This negativity towards the UK economy has increasingly drawn consumers to discounted prices, as 38% stated they would purchase goods at discounted prices at retail stores, and 47% inclined to make online discounted purchases.
A frictionless and smooth e-commerce journey for the consumer is proving pivotal for online retailers to provide in order to not only meet the consumers’ demands, but also retain them as a customer.
Mollie found that 41% of UK shoppers believe free shipping is an influential factor to continue with a purchase, with 52% also reporting that high shipping fees will result in cart abandonment.
Alternative payment methods, often above all else, are proving crucial in order to satisfy the customer. A seismic 94% of UK consumers surveyed stressed the importance of offering their preferred payment methods when it came to the checkout process.
Online shopping shows no sign of slowing down, instead increasing further as almost half (49%) said that they plan to spend more online in the next 12 months.
This accelerating shift of digital shopping has also birthed a range of shop stores on various social media platforms, such as YouTube, Instagram and TikTok.
This was evident in Mollie’s research, as 44% of UK shoppers stated YouTube as their favoured social media platform to research before purchasing, ahead of Facebook (43%), Instagram (38%) and TikTok (22%).
“In an era of economic uncertainty, this research underscores the resilience and adaptability of UK consumers, who, despite concerns about the economic climate, are primed to increase their online spending. It’s a clear signal for ecommerce businesses to prioritise payment diversity and optimise the checkout experience,” said Mia Hunter, UK MD & Director of International Expansion at Mollie.
“The surge in Buy Now, Pay Later usage and the dominance of social media platforms for product research underscores the need for a comprehensive and flexible approach in the ecommerce space.
“Navigating the dynamic UK ecommerce landscape calls for a versatile approach that cannot be ignored any longer by merchants.”