PayPal has stated that it is adding new features to its Buy Now, Pay Later (BNPL) offering.
To promote the mentioned new effort, the company announced on Thursday, April 10, that it is launching an advertising campaign featuring comedic actor Will Ferrell.
In a press release from the firm, it was noted that the actor’s signature humor will be on display as he embarks on a shopping journey to show all the ways users can pay with PayPal now and over time, with Pay Later available at merchants that accept PayPal.
It was also highlighted in the press release that the advertising campaign follows several updates designed to ease the PayPal checkout process, such as the ability to log in with biometrics and tap-to-pay options in partnership with Mastercard, which allow customers to earn cashback.
Besides, the company is launching what it described as its largest-ever sweepstakes with The Great PayPal Checkout, giving $10 million away by covering the purchases of up to $100 for 1,000 PayPal users for a 100-day stretch.
Geoff Seeley, PayPal’s chief marketing officer, stated that payments are no longer something secondary, they are a central driver in determining how consumers shop. It was also noted that as millions of customers select PayPal every day, the company commits to raising the bar and delivering an incredible, flexible, and rewarding experience that connects its clients with the things they want and love.
Will Ferrell stated that he boarded a plane to shout about PayPal’s sweepstakes from 30,000 feet.
It is worth noting that recently there has been a scaling up of the practice of using BNPL services among affluent consumers. They use this service in different cases, both in the framework of primary purchases, and in scenarios for the implementation of less critical needs involving the need for finance.
It is also worth noting that BNPL has already managed to obtain a kind of payment method status for those consumers who are faced with a shortage of funds. At the same time, industry statistics show that the mentioned perception is not consistent with reality at the maximum level. For example, according to the results of a specialized study, more than 60% of residents of the United States who make more than $100,000 per year use the specified payment method for all purchases, including, among others, clothing and overseas travel.
An increase in disposable income correlates with an increase in spending on non-essentials. Industry research results indicate that in the United States, 13.5% of higher earners use BNPL out of necessity. The alternative credit option has become popular for the bulk of them. One confirmation of this claim is that in December Klarna, a major player in the BNPL sector, announced partnerships with luxury retailers Neiman Marcus and Bergdorf Goodman.
BNPL has several advantages. In this case, consumers can split payments into smaller installments. The corresponding solution facilitates expense management. BNPL also provides for interest-free payments. This means that the service is more affordable compared to traditional loans or credit cards. Moreover, one of the advantages of BNPL is convenience. In this case, the payment process is seamless and quick. Moreover, as part of the BNPL, the corresponding process is often integrated directly into the online checkout system. Besides, it’s worth mentioning accessibility. Approval for BNPL is simpler in most cases compared to other forms of credit. One of the main advantages of the service for businesses is the ability to conserve cash flow and encourage large purchases.
As we have reported earlier, PayPal Brings Many of Its Brands Under Single Umbrella.
