Buy now pay later (BNPL) service, Openpay saw an increase in plan volume of 68% during the Black Friday sales event in 2018 and an increase in plan value of 43%, compared to the month prior.
“This shows that Australians are not only purchasing far more on these sale days, but they’re using BNPL services to do so,” Openpay chief commercial officer, Dion Appel told Retailbiz.
“Consumers are using BNPL services during this period to better manage their Christmas spending, helping them to streamline their cashflow during what can be an expensive time of year.”
Appel said consumers are keen to take advantage of big discounts when they’re on offer so services like Openpay allow them to make purchases of bigger ticket items when sales arise and manage the repayments over a longer period.
“BNPL has completely changed the retail landscape, giving customers the opportunity to purchase retail items in a way that works for them and giving merchants a strong new selling point. Openpay offers longer payment terms and higher plan value than most others in the space meaning consumers can pay for their items in a way that suits them,” he said.
“With major BNPL companies coming out of Australia, we’re proud to be part of this BNPL industry that as many as 30% of Australians are now using, according to Mozo research.”
He also said increased consumer hype around large-scale sales days has seen a big change in Australia’s retail calendar, especially in the lead up to Christmas.
“Black Friday sales are now starting as early as the Monday prior and Cyber Monday will extend beyond the day itself, resulting in close to a two week sale period. In a weaker retail trade environment, retailers are becoming very reliant on sales events and we’re seeing this impact the pre-Christmas shopping period.”