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Merrick, NY— BNPL (Buy Now, Pay Later) has been identified as a key retail trend for 2022 and one that jewelers need to pay close attention to. 

A mashup of traditional credit and layaway, BNPL differs slightly from both. Unlike standard credit financing, it’s an interest-free installment payment option like layaway, but it lets the customer have their item immediately, instead of only after it’s paid off, as in traditional layaway. 

It’s all made possible through a partnership with a BNPL provider. Typically, the full cost of a purchase is broken down into four installment payments, though fewer or more installments may be used, depending on the program. Some leading BNPL providers include Sezzle, Afterpay, Klarna, SplitIt, PayPal Credit,  Zip, and Affirm, but traditional credit card companies like Visa and Mastercard are now in the game as well, making it easier for existing customers to use such a program.

“We anticipate BNPL to grow this year, particularly as credit card providers roll out installment programs for their clients—new ways for clients to use their existing credit lines in a BNPL fashion. Why? Because there is a clear consumer demand for these kinds of service offerings,” says a blog on the Visa website. “Among U.S. credit-card-holding adults, nearly a quarter (24%) say they are “much more likely” to use a BNPL service if offered through their existing credit cards. Add to that figure the number of U.S. adults with credit cards who are “somewhat more likely” to use BNPL attached to their existing card, and the share becomes almost half (49%). Of that same group, 25% are “very likely” to use BNPL if those purchases qualified for the same kind of loyalty rewards as their credit card purchases, with another 45% being “somewhat likely.”

For example, Mastercard Installments, the Buy Now Pay Later (BNPL) program from Mastercard offers a choice of flexible, digital-first payment options at checkout, both in-store and online. The program was recently expanded to include new partners, as was Visa Installments Solution, which includes a partnership with BNPL provider Klarna.

Mastercard Installments, meanwhile, makes BNPL available to millions of consumers and merchants worldwide. It enables banks, lenders, fintechs and wallets to offer a variety of flexible installment options to consumers—including a zero-percent interest, pay-in-four model—without onerous merchant integration. This allows participating partners to quickly offer secure and competitive BNPL experiences at scale through Mastercard’s trusted global acceptance network. Consumers access BNPL offers, either through their lender’s mobile banking app or through instant approval during checkout. Pre-approved installments can be used directly on a merchant’s website or can be stored in digital wallets like Click-to-Pay to be used wherever Mastercard is accepted.

Craig Vosburg, chief product officer for Mastercard, says, “Mastercard Installments offers a digitally-focused way to pay today and tomorrow, delivered through consumers’ most trusted relationships with their banks and other lenders, at merchants of their choice.”