PayBright's CEO: How the Fashion Industry is Adopting BNPL in Canada

Buy Now, Pay Later (BNPL) options allow consumers to easily spread the cost of a purchase over a series of pre-determined, interest-free payments. BNPL has taken off in Australia, Europe and the United States and is poised to do so in Canada, particularly in the fashion and apparel industry. Forward-thinking retailers and price-sensitive millennials are fuelling the trend.

Even though their approach to credit and purchasing is different than the generations that precede them, debt-weary and credit-wary millennials still want to look good. Fashion and style matter to them in the age of Instagram and social media.

They may be conscientious spenders but that doesn’t mean they don’t want to occasionally splurge on high-end fashion, in addition to loading up at mid-price chains like H&M, which is now offering BNPL options via Klarna, and Steve Madden which offers BNPL in Canada through PayBright.

Allowing these conscientious consumers to buy what they want without taking on potentially dangerous credit card debt is a savvy way to build brand and/or store loyalty.

The benefits to both retailers and consumers are clear. That $280 pair of Steve Madden boots is easier to buy in four bi-weekly $70 interest-free payments. This “Pay in 4” option is attractive for many millennials, spurring the growth of BNPL as a popular payment method in fashion retail, both online and in-store.

Embracing BNPL is a winning proposition for many fashion and apparel retailers. It enables them to lower barriers to purchase without having to sharply discount their merchandise, something that can erode not only margins but also brand value. It also helps them attract those all-important younger consumers who may not yet be earning the income to spend as much money up-front as they’d like on fashion – and since many of them came of age in the aftermath of the 2008 recession, they’re increasingly shunning credit cards.

BNPL offers them a low-friction alternative to credit cards -- and, consequently, a way to avoid expensive compounding interest and hidden fees by giving them the option to pay in bi-weekly, interest-free installments.Can we add in underline functionality

Allowing these conscientious consumers to buy what they want without taking on potentially dangerous credit card debt is a savvy way to build brand and/or store loyalty.

For retailers, BNPL helps drive conversion rates both online and in-store. PayBright’s merchant partners have reported increases in e-commerce conversion rates of up to 25% and increases in average order value of up to 80%.

Here at PayBright, we’re giving Canadian consumers the opportunity to pay for the goods they want in simple installments.

Fashion and apparel retailers have always been trend-setters, and they’ve been leaders in adopting BNPL and bringing it to their customers as a new and flexible payment method. We are now seeing the trend arrive in Canada as well.

This article is provided for informational purposes only. It is not an exhaustive review of this topic. The content is not financial or investment advice. No professional relationship of any kind is formed between you and PayBright. While we have obtained or compiled this information from sources we believe to be reliable, we cannot and do not guarantee its accuracy. We recommend that you consult your personal finance professional before taking any action related to this information. PayBright is a provider of Buy Now, Pay Later (BNPL) solutions. BNPL providers offer plans with a variety of terms and conditions, including interest rates, fees, and penalties, and have different standards for qualifying for loans. Laws and regulations governing BNPL providers vary by jurisdiction. We recommend that you compare and contrast plans, read the fine print, and conduct detailed research into any BNPL provider before using their services.