Is the "Buy Now, Pay Later" changing the way we shop? Designed for Gen Z, the installment shopping method is set to grow in the coming years

In the post-pandemic era it is increasingly difficult to try to identify the motivations, needs and real needs of the consumer, which is why many companies are trying to revolutionize the shopping experience. Among this is Klarna, one of the main companies to have worked in the phenomenon of "Buy Now, Pay Later", a service that allows you to take home any item of clothing and pay for it in convenient arrived in Italy, thanks to the collaboration between Amazon Fashion and the influencer and tiktoker Elisa Maino. The choice of the testimonial is certainly not accidental, and has been designed to fit into that slice of the under-30 audience to which the Buy Now Pay Later offer is addressed, focusing on the fastest channels to reach and convince potential users to follow this trend. Knowing that young people don't have the means to indulge their shopping instincts, they are ready to offer an easy and cheap alternative without interest or commissions

A real revolution that is changing the perspective in online shopping by putting in first place the needs of the customer, who wants to have a continuous rotation in his wardrobe without looking at the price as the main barrier to the final purchase.  According to a report by Research and Market, the "Buy Now, Pay Later" market will be worth around $20 billion by 2028, while analysts at Juniper Research told the Observer that by 2026 spending through BNPL services will reach nearly $51 billion (£37 billion) in the UK alone. Globally, spending is expected to reach $995 billion in five years, nearly four times the current figure.

That's also why in 2020, Klarna has set aside SEK 2.5 billion ($275 million) to cover bad debts, on a consumer loan portfolio of SEK 42 billion. To regulate Buy Now Pay Later, the UK's Financial Conduct Authority has on its agenda for 2022 to introduce tough regulation towards this industry, such as requiring retailers using it to obtain a banking license in order to certify the legality of this service. In the meantime, the growth of BNPL is unabated and is becoming a vital factor for retailers around the world as well. As reported by Bloomberg: "Stores often incorporate the service into their marketing, which is heavily geared toward young people: Fashion retailer Missguided encourages customers to 'look sexy now, pay later'" and Boohoo urges, "Don't wait for payday, Boohoo accepts Klarna." There are still plenty of shadows and potential risks associated with the BNPL, but trying to slow it down seems like a no-brainer.