“Buy Now, Pay Later” (BNPL) apps are changing the game by offering flexible payment options that alleviate the burden of full upfront payments. As these apps gain popularity, expanding their user base becomes crucial. Mobile OEM (Original Equipment Manufacturer) advertising offers a strategic edge, providing targeted and efficient solutions to accelerate user acquisition and drive growth in the BNPL space.
BNPL Apps: The New Wave of Payment Flexibility
Buy Now, Pay Later apps like Klarna, PayPal, Affirm, and Afterpay let users split payments into smaller, often interest-free installments. This approach appeals to younger consumers who prefer alternatives to traditional credit. By early 2024, the global BNPL market was valued at over US$30 billion, on par with the global box office.. With projections to hit US$115 billion by 2032 and currently capturing just 3% of the domestic e-commerce market, BNPL apps are set for major expansion.
The sector’s rapid growth is fueled by millennials (39.5%) and Gen Z (46.5%), who favor Buy Now, Pay Later apps over credit cards. As e-commerce continues to rise, competition among BNPL providers increases, making innovative advertising and strategic partnerships essential for success.
How Mobile OEM Advertising Enhances BNPL App Growth
Mobile OEM advertising taps into mobile OEMs and their alternative app stores to reach users directly on their devices, boosting visibility and engagement. It targets specific device models, locations, and behaviors. For instance, with 22.7% of women vs 14.7% of men using BNPL apps, targeted campaigns can focus on female users. Similarly, 72.6% of households earning under US$75,000 use Buy Now, Pay Later services compared to 7.6% of households with incomes above US$75,000.
In another instance, mobile OEM advertising enables app developers to integrate their apps directly into the ecosystem of mobile devices, such as through Dynamic Preloads or factory pre-install deals. This puts your app front and center for every user who sets up their new device. BNPL apps can also be spotlighted through “app store featuring” – exclusive to specific mobile OEMs. This strategy not only increases visibility but also boosts user engagement by ensuring that the app is readily available and/or found when users are most likely to need it.
A user searching for a competing BNPL app or a payment or e-commerce app could see your app listed as one of the first results or in the search bar itself through alternative app store placements or keyword targeting. The possibilities and touchpoints with mobile OEMs are virtually endless compared to traditional mobile advertising channels. This freedom of choice is what gives mobile OEM advertising such virtually endless possibilities with their campaigns.
Case Study: AstraPay’s Success with Mobile OEMs and AVOW
Mobile OEMs can significantly enhance user acquisition for Buy Now, Pay Later apps, payments apps, fintech services, and more. AstraPay, a leading digital wallet app in Southeast Asia, leveraged AVOW’s exclusive OEM inventory from Vivo, Oppo, and Xiaomi to boost its user acquisition. Despite not being a BNPL service, AstraPay’s case demonstrates how mobile OEMs can be crucial for various financial apps. AVOW’s strategy introduced untapped ad formats and performance-based CPI bids, resulting in over 30 million impressions, a 45% increase in app registrations, and zero instances of fraud. This approach effectively elevated AstraPay’s user engagement, especially in the competitive Indonesian market.
→ Read the full case study here
Mobile OEM Advertising is the Now, Not “Later”
Buy Now, Pay Later apps have a prime opportunity to accelerate growth through mobile OEM advertising. By partnering with mobile OEMs like Samsung, Xiaomi, Huawei, and more, these apps can boost their market presence and reach a wider audience. As the BNPL sector evolves, blending innovative advertising with a strong user experience will be crucial for long-term success. With a skilled mobile OEM specialist like AVOW, you can turn potential into success sooner rather than later.
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