Fiserv Adds Buy Now, Pay Later Option
“Fiserv is building differentiated payment experiences that are designed to help our clients create more commerce,” said Mark Hennin, Fiserv’s senior vice president.
The expansion of BNPL payment options is growing. More than one-quarter of retailers already offer installment payments, according to a survey by Forrester Research. The Cambridge market research company also reported that more than 40 percent of online consumers who are aware of installment payments use that method to purchase goods.
To meet the demand for BNPL options, Fiserv said it has enabled QuadPay, an app that splits payments into four installments over six weeks.
Fanatics, the licensed online sports merchandise retailer, is the most recent firm to join Fiserv and QuadPay, along with Fans Edge and SportsMemorabilia.com.
The August issue of the Buy Now Pay Later Tracker – written in collaboration with Afterpay Ltd., the Australian FinTech operating in the U.S. – reported that Generation Z consumers are proving to be an appealing demographic for retailers, especially as they begin flexing more spending power. The 19-page report revealed that Gen Z comprises 40 percent of all U.S. consumers and possesses $143 billion in purchasing potential. The research suggests that companies can better appeal to those consumers by offering flexible payment options.
For example, Atlanta-based BlackCool, an apparel and accessories company, said it recently boosted its sales by 600 percent by offering installment payment plans, according to Rocky Williform, the company’s CEO. He said the flexibility of BNPL options has also allowed customers to stretch their dollars during the pandemic.
Last month, Anne Evers, vice president of prepaid and disbursements at Fiserv, told PYMNTS that the power of paper checks is disappearing, especially in the past few months amid COVID-19. “Technology and consumer demand have been moving payouts toward digital in recent years, and well over half of consumers receiving a payout want an electronic option,” she said. “Payroll has been trending toward electronic distribution for some time. Consumers [want] electronic access to their funds that is easily accessible and frictionless.”