What if We Offered Deferred Payment for Car Rentals That Truly Delight Customers and Boost the RPD up?

Transforming Customer Experience with Buy Now, Pay Later (or BNPL) in Car Rentals

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Differing Dynamics Across Europe

This new edition reveals varying dynamics regarding the growth and adoption of payment facilities across Europe:

• France and Spain: Payment in installments remains very popular, with one in three users utilizing it regularly.
• Germany and the Netherlands: Deferred payment is preferred, with 58% of Germans and 40% of Dutch using it regularly.
• Italy and the Netherlands: These countries stand out with more significant growth: 14% of users opt for installment payments in Italy, and 11% choose deferred payments in the Netherlands in 2023.

These contrasts highlight the diversity of European markets. The frequency of installment payment usage continues to increase, with 41% of French users making more than eight purchases per year using this method (40% of European users). Although all sectors are affected, the top three in France include household appliances, high-tech products, and travel.

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Increased Use of Buy Now, Pay Later

In a context still marked by inflation, more than half of French people plan to maintain or increase their use of BNPL. This figure reaches 58% in Spain, 60% in Italy, and 46% on average in Europe. The data also reveals more general use of BNPL among middle and high-income earners.

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BNPL: A Major Asset for Customer Experience

BNPL is a significant asset for customer experience, promoting more responsible consumption. For merchants, integrating BNPL into the payment methods offered is a strategic lever that directly influences consumer choice:

• Decisive Criteria: For nearly one-third of French people, the payment methods offered are a decisive factor in choosing a brand, as important as reviews.
• Loyalty: More than half of users (59% in France and 54% in Europe) would be willing to switch brands to benefit from BNPL.
• Cart Abandonment: The refusal of a payment facility or the requirement to download an app remains a major obstacle, potentially leading to cart abandonment for one in two French people surveyed.
• Quality and Responsibility: More than half of those surveyed using BNPL consider it a way to purchase higher-quality or more responsible products.

Integrating BNPL into payment options for car rentals could not only enhance the customer experience but also retain a demanding and quality-conscious customer base. In an ever-evolving market, this strategy could be decisive in standing out from the competition.

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Who Are the Main Players in BNPL?

• Best for Multiple Repayment Options: Klarna, Floa
• Best for Long Repayment Terms: Affirm
• Best for No-Interest Payments: Afterpay
• Best for Payment Flexibility: Sezzle
• Best for User Experience: Quadpay

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MOPs: A Key Pillar of Revenue Management Strategy‍

Methods of Payment (MOPs) play a central role in any effective Revenue Management strategy, especially in the competitive landscape of car rentals. Offering a diverse range of payment methods, including Buy Now, Pay Later (BNPL) solutions, enables companies to better align with customer expectations, reduce friction in the booking process, and boost RPD.
In today’s market, where convenience and choice strongly influence purchasing decisions, the integration of BNPL and other modern MOPs is no longer optional—it’s a strategic necessity.

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Source: Quotidien du Tourisme IFTM 2024 ; FLOA-Kantar Barometer

Study by Kantar for FLOA "Consumption trends and usages of payment in Europe" – conducted from December 13 to 22, 2023 by Kantar among 4,916 respondents representative of the populations in France, Spain, Belgium, Italy, Portugal, Germany, and the Netherlands.‍