Google Pay Pilots New Buy Now Pay Later (BNPL) Options
Hey FinTech Fanatic!
There seems to be no day without BNPL news. Drew Olson, Senior Director at Google Pay, discussed with PYMNTS CEO Karen Webster the growing consumer demand for diverse payment options, notably Buy Now, Pay Later (BNPL). This trend is particularly strong among the over one billion daily Google shoppers.
Olson emphasized the need for more payment choices across various merchants. In response, Google Pay has launched a pilot program with BNPL providers Affirm and Zip.
This initiative will introduce BNPL options at selected U.S. merchants in apparel, theater, and travel sectors that already support Google Pay for online transactions.
Google Pay's collaboration with these BNPL providers extends the payment options for merchants already integrated with Google Pay, enabling them to expand their payment methods without direct links to BNPL services.
Olson pointed out that this integration could boost merchant revenues. For instance, Affirm reports that merchants utilizing its services see a 60% increase in average order values compared to other payment methods.
BNPL providers also benefit from the expanded user base, as Google Pay users connect their wallets and explore BNPL options with other merchants.
Olson concluded by highlighting the seamless integration of these BNPL options into the existing Google Pay experience, offering a frictionless expansion of payment product distribution in a familiar user interface.
When shoppers opt for Google Pay at the checkout of merchants involved in the pilot program, they will receive a notification informing them of the availability of BNPL options through Affirm or Zip.
This strategy contrasts with Apple's method, where they have developed their own direct-to-consumer BNPL service, rather than relying on merchant distribution.
Apple Pay Later, which can be utilized at any retailer accepting Apple Pay, is available for eligible purchases, including those made in physical stores.
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