BNPL providers target in-store shoppers through POS integration and virtual card launches

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Initially tapping into the growth of the e-commerce sector, buy now pay later (BNPL) providers are now working their way into physical stores as more and more shoppers venture out and seek affordable ways to pay for their purchases. With a few years of deferred payment experience and data to work with, BNPL providers globally are recognizing the retail benefits installments represent, be it increased loyalty or higher sales.

Square adds Afterpay integration to in-person Point of Sale

For Square, the acquisition of Afterpay is already paying off. The BNPL service offered by Afterpay is helping generate increased conversions and repeat consumer transactions for sellers. In the midst of this growing traction, Square plans to make BNPL available for in-person payments. For instance,

• In May 2022, Square announced that the firm is adding more BNPL integrations for in-person shopping, thereby allowing shoppers to use the mobile wallet, which contains their virtual Afterpay card, at the point of sale.

The acquisition of Afterpay has resulted in a glut of new shoppers and more revenue for Square. Sellers using Square Online have experienced bigger transaction sizes, more growth in important merchant categories, and increased buyers. The firm is now extending this growth to in-person commerce, with the average order value being more than double in Australia and an increase of around 50% in the United States.

In-store BNPL service launched for shoppers in Ireland

The in-store BNPL trend is gaining momentum globally. Payment providers are looking to target in-store shoppers in Ireland to gain market share and drive growth in the increasingly competitive market. For instance,

• In May 2022, MultiPay announced that the firm had entered into a strategic collaboration with Mastercard to launch the BNPL service across stores in Ireland. To reduce the complexity for retailers, the BNPL service has been developed to connect with the existing bank account of merchants. Thus, ensuring that retailers can continue their existing payment infrastructure for payment methods.

The launch of the in-store installment payment solution from MultiPay comes on the back of growing demand from shoppers in Ireland. Notably, this strategic partnership with Mastercard will also allow MultiPay to make in-store installment payment offering simple for Irish retailers, as it comes without any increased costs or complexity. Moreover, the payment service will also drive incremental revenue for the retailers in the country by driving footfall at the stores.

Virtual BNPL card launched to make in-store shopping simple for buyers in UAE

Similar trends are visible in the Middle East region, where BNPL providers are launching virtual BNPL cards to make in-store shopping more simple and seamless for buyers in UAE. For instance,

• In May 2022, Tabby, the Dubai-based BNPL provider, announced that the firm had entered into a strategic partnership with Visa to launch a virtual card. The card, designed in partnership with API infrastructure firm, M2P Fintech, aims to make in-store payments easier for shoppers.
• Founded in 2020, the BNPL platform has more than 1.5 million users in the UAE and Saudi Arabia. It has forged alliances with various merchants across product categories. Its merchant partners include IKEA, Dyson, Nike, and Adidas. As of May 2022, the virtual card is invite-only for consumers in the UAE; however, the firm is expected to roll out the service in other markets soon.

The launch of the virtual card from Tabby for in-store shopping is a strategic move as almost 90% of the retail shopping in the Middle East region happens offline. The launch of the virtual card comes two months after the firm raised US$54 million in its Series B funding round.

As merchants seek new ways to make their ecosystem more meaningful, PayNXT360 expects more markets to see such in-store solution launches over the next three to four years globally.

To know more and gain a deeper understanding of the global BNPL market, click here.