| | JUNE - 202319CIOReviewWITH SUCH BNPL OFFERS, CUSTOMERS IN ONLINE SHOPS HAVE THE POSSIBILITY TO AVOID AN IMMEDIATE DEBIT OF THEIR SETTLEMENT ACCOUNTS AND THUS TAKE ADVANTAGE OF A SHORT- OR EVEN LONGER-TERM CONSUMER CREDITbe divided into several partial amounts and thus, for example, the premium variant can be financed instead of the standard model. Various studies have already proven that the introduction of BNPL products and the associated features have a positive influence on the conversion rate and generally increase the average shopping basket value - respectively in the aforementioned country regions. In practice, this works particularly well if the customer is made aware of a possible payment by instalments on the product page, for example.Challenges can also be derived from this, specifically for small and medium-sized enterprises, which have to keep an eye on bad debts, fraud, dunning and collection rates, unless the risk is completely taken away by a provider. At the same time, it is important for merchants to find the "right" partner who does not go directly into confrontation with the customer in the case of outstanding debt but works out a satisfactory solution together with the customer. Customer communication is a significant success factor because if a customer has a bad experience due to poor process design, they are likely to switch to a competitor in the future. It has long been proven that customer satisfaction is a significant variable that increases customer loyalty. Due to the fact that some customers prefer individual BNPL products or have had bad experiences with certain BNPL products, it can be observed in the market that the first online retailers are already reacting to this and are now including more than one BNPL partner in the purchasing process, although the financial products are very similar. Finally, it is important to mention that these BNPL products are currently the subject of controversial discussions, as Millenials and Gen Z in particular prefer BNPL products, although all other generations are of course also relevant. Accordingly, some institutions are concerned with the development of the level of over-indebtedness of private households. Therefore, it is always necessary to check whether and to what extent new regulations have to be complied with. The expenses for any changes are likely to be incurred mainly by the provider, but from the retailer's point of view, one should observe the developments and remain in proactive exchange with the provider in this regard.
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