A comparative analysis of e-commerce platforms' BNPL schemes and their influence on impulse purchase behaviours of gen-z customers

Abstract

This comprehensive report studies the intricate dynamics of Gen-Z consumers’ impulse purchase behaviour on e-commerce sites, with emphasis on Buy Now, Pay Later (BNPL) services. The study delves into the examination of BNPL transaction journeys, identification of various BNPL providers, and a deep dive into BNPL features to derive key insights into the factors at play and to generate strategic recommendations.

Key Insights Derived: BNPL Transaction Journey Analysis: Examination of BNPL transaction journeys reveals multiple touchpoints that influence Gen-Z consumers’ purchase behaviour. This helps identify and prioritize key BNPL features that drive decision-making.

BNPL Providers and Feature Analysis: The most popular BNPL providers in India and their core product offerings were studied to identify an optimal feature set for consumer engagement.

Behavioural Insights from Expert Interviews & Surveys: Based on expert interviews and quantitative analysis of consumer survey data, the findings indicate that BNPL users exhibit a higher impulse buying tendency compared to non-BNPL users. This insight can assist in identifying the most suitable platforms for offering BNPL services.

Cluster Analysis of Key Features: Cluster analysis highlighted that features like the interest-free period and interest rate significantly influence impulse purchasing behaviour among Gen-Z consumers.

Platform Preference Trends: The analysis shows that consumers typically choose platforms based on product offerings. Amazon emerges as the most preferred e-commerce platform for both BNPL and non-BNPL users. Among BNPL users, electronics, groceries, and fashion/clothing rank similarly in product category preferences, presenting strategic segments where BNPL services can be leveraged to attract more customers.