How BNPL Improves Conversion Rates

Are your customers bailing at checkout because of sticker shock?

Turns out, a growing number of shoppers would’ve stuck around… if only they could split that payment.

Here at Pilothouse, we’re seeing Buy Now, Pay Later (BNPL) evolve from a “nice-to-have” into a can’t-afford-not-to-offer tool for DTC brands.

And no, it’s not just hype—it’s data-backed, habit-shifting, cart-converting gold.

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Here are the BNPL stats:

• 93.3 million U.S. consumers are expected to use BNPL in 2024.
• During the 2023 holiday season, BNPL usage jumped 12.4% year-over-year, hitting $16.6B+ in spend.
• It now accounts for up to 20% of online holiday purchases.

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Why you should pay attention:

Not offering BNPL? You might be bleeding conversions.

A PayPal study found 66% of BNPL users abandon carts if their preferred option isn’t available.

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But with BNPL…

• Klarna reports 30–35% conversion lifts on average.
• Affirm sees up to 87% higher AOVs on BNPL purchases.
• Stripe found two-thirds of BNPL orders were net-new—not just a payment method swap.

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Who’s Actually Using It?

Gen Z and Millennials.

They’re not anti-spending—they’re anti-credit-card-debt.

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BNPL gives them room to shop without the interest rates.

• 48% of Gen Z planned to use BNPL for holiday purchases.
• 34% of BNPL users say they wouldn’t have made the purchase without it.

👉 BNPL is less about luxury and more about liquidity.

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BNPL in a Downturn: Lifesaver or Lightning Rod?

Let’s get real: When folks start using buy now, pay later to cover groceries, we’ve officially moved past “fun payment perk” territory

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The latest BNPL data is telling:

• 25% of BNPL users are financing their food, up from 14% last year.
• 41% have missed a payment in the past 12 months.
• 60% of Americans think we’re already in a recession—and over half say BNPL is helping them get by.

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This isn’t about snagging sneakers before payday—it’s about making ends meet. BNPL is shifting from a conversion tool to survival strategy.

As marketers, that’s a big flashing “use responsibly” sign.

Yes, flexible payments can open the door to new customers and higher AOVs.

But in a downturn? Your messaging matters more than ever.

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💡 Tactical Tip: Run a split test.

• The other plays into reward: E.g. “Treat yourself now,” “Make it yours today”
• One variant focuses on relief: E.g. “Stretch your budget,” “Manage costs over time”

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Watch which one lands better—and with whom. Because in times like these, empathy converts.

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How Brands Are Using BNPL

At Pilothouse, we’ve seen Buy Now Pay Later act as a high-impact lever for:

✅ Reducing checkout friction—especially on mobile, where conversion pain is real.
✅ Upselling with ease—splitting costs softens sticker shock.
✅ Increasing ad performance—“From $19/mo” headlines get the click.
✅ Boosting discovery—BNPL apps like Klarna and Afterpay act like marketplaces.

Strategic Takeaways for Marketers

1. Mention BNPL early—don’t bury it at checkout.
2. Incorporate across your funnel—PDPs, paid ads, email, SMS.
3. Track impact—monitor AOV, conversion lift, and new customer volume.
4. Choose partners carefully—focus on speed, UX, and mobile optimization.

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The takeaway?

BNPL is no longer a “maybe.” Used well, it reduces friction, boosts AOV, and shows your customers you get it—especially when times are tight.

If you’re not testing it now, you may be missing one of the lowest-lift, highest-ROI upgrades in modern ecommerce.