The annual winter sale period begins in June and buy now pay later (BNPL) services are expected to be a major feature.
Even though the weather is only just cooling down around the country, Australian retailers are gearing up for the annual winter sale period. BNPL services, such as Zip, are vital for retail growth and success.
Each year in Australia, the winter sale period kicks off in the third week of June. While it isn’t an officially recognised event, traditionally, after the big department stores launch their sale, smaller retailers follow suit.
Both online and brick-and-mortar stores offer great discounts on winter apparel to make way for new spring collections to arrive. The winter sale period typically lasts until the last week of August.
BNPL services are expected to be heavily utilised by shoppers during the winter sale period. Zip has over two million customers in Australia and New Zealand. With an increasing number of stores now offering BNPL options, the sale period is expected to yield strong results for the retail sector.
Fast and flexible payment options continue to gain popularity, particularly among young shoppers who are turning their backs on credit cards in favour of BNPL services. A recent study suggests that 90 percent of millennials are avoiding credit card products because of the perceived associated risks.
Unlike traditional credit card accounts, when consumers use BNPL services, their purchases are interest free. Shoppers can sign up online, choose their spending limit and be ready to use the service in a matter of minutes. They then choose which of the flexible repayment plans is right for them.
BNPL payment solutions provide shoppers with instant gratification and allows them to purchase things they would otherwise have walked away from. Having access to credit often means customers are prepared to spend more on the things they want.
BNPL offers shoppers a seamless and fast payment experience, which retailers can capitalise on to build loyalty and repeat business. Recently, Zip introduced the Tap & Zip service in partnership with Visa, allowing users to add a Zip card to Apple Pay or Google Pay. Essentially, this means they can now pay with Zip everywhere that accepts contactless payments.
In addition, Zip now offers small business loans, which retailers can use to invest in inventory, supporting cash flow and stimulating business growth.
Krishna Murthy is the senior publisher at Finance XOD. He is not only the senior publisher but also the owner of Tricky Finance. Krishna Murthy was one of the brilliant students during his college days. He completed his education in MBA (Master of Business Administration), and he is currently managing the all workload for sharing the best banking information over the internet. The main purpose of starting Tricky Finance is to provide all the precious information related to businesses and the banks to his readers.