Online merchants debating adding a “Buy Now, Pay Later” (BNPL) option to their online checkout should look no further than the example of Keyzar Jewelry4. The company, which began on Etsy two years ago, added Shopify and PayPal’s installment payment options when it launched its own direct-to-consumer website in January 2021. Following customer demand, it later added Klarna, too.
The impact was instant: within 30 days, customers began making higher order value purchases, whilst conversion rates increased around 30% in the first month. Overall web sales increased by about 14%5.
The jewelry company’s decision to introduce a BNPL option was largely influenced by the demographic of its employees. “We realized we’re all in our 30s and tend to be broke — but that doesn’t mean we don’t want or deserve a fine piece of jewelry we can be proud of,” CMO George Pich says6. “We decided to think of ourselves as the jewelry brand that cares and understands millennials and Gen Z. [Through an installment payment plan], you can still get the proposal you want, even if you don’t have a big budget.”
Globally, the BNPL market has grown quickly over the last several years. It’s estimated that by 2026, 1.5 million consumers across the world will use a BNPL solution, helping the sector take a 24% share of physical goods purchases by value7.