Buy now, pay later and big-ticket purchases

Last updated August 2022

There are so many reasons why buy now, pay later has become a go-to option for shoppers and retailers alike. One major perk is the way BNPL payment plans can help facilitate purchases with a high price-tag, such as electronics, luxury fashion, furniture, appliances, and more. 

From one-off big-ticket items to lifestyle brands, buy now, pay later helps people budget for large purchases. Here, we’re looking a little closer at the types of customers who are looking for a BNPL solution to buy high-priced items and how this process differs compared to smaller purchases. 


How does buy now, pay later work for high-priced items?

Just as with any purchase, the BNPL process for buying a high-ticket item varies depending on the provider  and the retailer. Many buy now, pay later providers have a purchase limit, which caps the amount that customers can spend on a BNPL plan. Splitit doesn’t set a limit -customers are able to leverage the available balance on their credit card (and retailers are able to set a limit themselves).

Generally, customers can choose to split the cost over a series of installments. Some providers will perform a full credit check and loan the total purchase amount with interest, in a similar fashion to a traditional bank loan. 

In other cases, a full credit check may not be required, but the provider will charge hefty late fees and penalties if payments are missed or incomplete. Some providers have a spending cap that may not accommodate big-ticket purchases. 

With Splitit, customers can leverage the existing balance on their credit card to make a purchase. The entire purchase amount will be placed as a hold on their card, and then reduced as they make regular payments. 

This means there’s no need for additional financing, a credit check, or interest payments – it’s all about tapping into the unused power of their existing credit card.  


What type of customers leverage BNPL for large purchases?

Buy now, pay later appeals to different demographics that are shopping across all price points, including big-ticket items. It provides a way for people to make large purchases in a flexible format that suits their budget. 

Millennials are the most responsive to the opportunity for leveraging BNPL to help them secure more expensive products. According to a recent survey, 70% of millennials said they are highly interested in using installment plans at luxury and specialty retailers.

This is apparent in the way Vestiaire Collective, a high-end, pre-owned fashion platform, uses buy now, pay later to make high-ticket items available to people who are looking for a more flexible way to pay. Vestiaire reports that they propose Splitit for high-value items that other BNPL solutions aren’t able to accommodate due to purchase limits. This has resulted in positive traction on high-ticket items, including US transactions of $8,000 and above. 

BNPL is also applicable to health and wellness products that come at a significant cost. Byte, the oral care platform, has an AOV between $1,850 and $2,900. By partnering with Splitit and implementing a BNPL solution that works with customers’ existing credit cards, they have opened up a new channel of access to teeth-straightening technology. 

This has helped people who may traditionally not have been able to afford orthodontia by providing a flexible, budget-friendly way to pay for an expensive treatment plan (all without the need to take on any additional credit).

And it’s not just about being able to pay for items that might otherwise be out of reach. 43% of worry-free consumers said they would be interested in using BNPL for expensive, one-time retail purchases, suggesting that customers like the flexibility and control that buy now, pay later platforms offer. 

How does BNPL differ for larger purchases vs. smaller purchases?

Buy now, pay later is a tool that retailers can use across their entire business and marketing strategy. There are many ways it can help to drive key metrics and cater to customers who are looking to make larger purchases.

Conversion rate

When looking at the purchasing journey, BNPL allows customers to consider alternative options when deciding whether they can afford a high-ticket item. It allows them to take control over their budget and break a large payment into affordable installments. 

55% of luxury and specialty retail customers say they are at least somewhat likely to switch merchants as a result of BNPL availability.

BNPL can also be a helpful option for high-priced, time-sensitive purchases that people may not be willing to wait for, such as an engagement ring, or unexpected expenses that customers may not have been prepared for, such as a new sofa

For retailers, having BNPL as part of your payment portfolio leads to improved conversion rate – Splitit alone drives an average 30% growth in conversion. 


Along with making it easier for customers to budget for large purchases, BNPL enables people to increase their purchase amount and pay for big-ticket items in a more flexible way. 

Splitit’s existing card-based model is especially effective in driving a higher AOV, as it allows customers to leverage the purchasing power they already have, without the need to worry about accruing interest or taking out another line of credit. 

On average, Splitit sees a 50% higher average order value (AOV) of $1,000+ (which is higher than that of legacy BNPL providers like Afterpay and Affirm). 

Acquisition and retention

Customer satisfaction isn’t just about giving shoppers what they want – it’s also about presenting them with opportunities to make choices that fit their specific situation at that time. Diversifying your payment options with BNPL allows customers to be in better control of their finances.

However, it’s not as simple as throwing a buy now, pay later platform into your checkout. When it comes to targeting for high-ticket items, it’s worth noting that not all providers have options for large purchases. With Splitit, the purchase limit is dictated by your existing credit (and any limit set by the retailer). 

Customer experience is also crucial. The user journey should be prioritized, with buy now, pay later as an option that supports (rather than distracts). 

Splitit’s white-label offering means that BNPL becomes a simple, clean, and a holistic part of your brand. Because customers are using their existing credit, they may be more comfortable using installments on their existing credit card  to fund large purchases. This helps to build trust, sentiment, and overall retention. 

Using BNPL to fund big-ticket items is a strategy that can attract new customers and build loyalty across your existing base. With Splitit, it’s all about helping people make the most of the credit they already have and opening them up to a flexible, easy way to afford high-value products and services. If you’re looking to grow AOV and conversion on larger purchases, learn how you can get started.  

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