Marketing Strategies

Buy-Now Pay-Later and the Affiliate Channel

Buy-now pay-later solutions have risen in popularity over recent years and are now turning to the affiliate channel to enhance partnerships with brands and create loyalty with consumers.

A take on the traditional lay-buy solution and an alternate to credit cards, buy-now pay-later is set to account for 4.2% of all global e-commerce payments in 2024. And according to buy-now pay-later provider ZIP, they increase average-order-value (AOV) by 70% and repeat purchases by 80% compared to other payment options. 

Along with providing alternative payment options, buy-now pay-later publishers allow brands to reach new consumers and encourage repeat purchases via additional advertising opportunities. Curated content, newsletter features, brand search and loyalty programs are some of the additional opportunities’ brands can leverage. With data from global provider Klarna, indicating that shoppers would have abandoned their purchase if the option of paying via four installments wasn’t available, now is the time for brands to stand up and take notice. now is the time for brands to stand up and take notice.   

Global Consumer Attitudes to Buy-Now Pay-Later Solutions:  

In a recent Worldpay from FIS survey, 81% of global consumers stated they would like the ability to earn points and redeem those points at multiple types of retailers. With providers such as Klarna adding a loyalty component to their offering, consumers have the choice to choose where they redeem points. Additionally, Worldpay adds that partnering with a payment provider for loyalty can offer cost savings and access to a greater depth of data for brands.  

The additional benefits are paying off for providers as well. As mentioned earlier, it’s predicted that 4.2% of global e-commerce payments will be made via buy-now pay-later solutions (WorldPay Global Payments Report – Jan 2021). Breaking this down to see how customers are shifting to these new solutions around the globe, we discover that:   

  • Payments in North America will increase from 1.6% in 2020 to 4.5% in 2024.  
  • The EMEA region represents the largest users of buy-now-pay later solutions globally, accounting for 7.4% of e-commerce payments 2020 and increasing to 13.6% by the end of 2024. 
  • In APAC, 0.6% of 2020 e-commerce payments are made via the solution and will grow to 1.3% in 2024. While this number may not be the largest, it’s important to note the dominance of digital/mobile wallet payment options such as WeChat in China is set to account for 65.4% of all e-commerce payments in the region in 2024. However, buy-now pay-later methods will overtake pre-paid cards and deferred debit cards as a preferred option in APAC by 2024.  

Engaging Gen Z:  

According to a Worldpay 2020 report, Gen Z isn’t instinctively drawn to the same banking, payments and investment tools as their parent’s. They are drawn to financial products and services that deliver practicality and convenience. Alternative financing options that emphasize short-term flexibility – such as ‘buy-now pay-later’ services are exceptionally appealing to this generation.  

The ability to make a purchase and pay via installments with no interest makes the offering attractive to Gen Z consumers. As an article Bloomberg states, “they are savvy shoppers – and financially prudent, shunning credit cards.” Gen Z has watched their parents live through the hardship of the 2008 global financial crisis, and they’re adamant not to make the same mistakes. The Australian firm Afterpay put it nicely, Afterpay exists so you can get what you need without ongoing debt. 

Digital payments that unify the e-commerce experience, such as buy-now pay-later options, are now essential for brands in achieving scale and converting consumers. And leveraging the additional marketing opportunities that come from partnerships with providers gives brands the extra edge in reaching their desired customers.  

For more information on partnering with buy-now pay-later affiliate providers, contact your Rakuten Advertising account representative or visit  

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