New trend in online shopping: Hungarians pay later

In Hungarian e-commerce, it is increasingly less and less enough for a webshop to offer a product only a few thousand forints cheaper than the others. With the emergence of global platforms and large international retailers, price competition has developed in which most domestic players are already at a disadvantage. In this situation, the key to survival and growth has increasingly become not price, but service. Speed, reliability, a good customer experience and flexible payment options now matter at least as much as the price tag itself. BNPL, or “Buy Now, Pay Later”, is playing an increasingly important role in this.

For a long time, it was self-evident that the winner in online commerce was the one who offered the same product cheaper. However, this logic has now weakened dramatically. Large international players operate with a purchasing advantage that most Hungarian webshops cannot keep up with. If a domestic retailer tries to acquire customers solely by lowering the price, it can easily jeopardize its own operations.

“Global competitors are entering the market one after another, who are in a much better price bargaining position due to their huge volume of purchases, so it is suicidal for Hungarian merchants to compete on price alone,” said Géza Bruzsa, fintech expert and CEO of Instacash and Milpay. “Of course, price is still important, but the role of services has significantly increased, because customers today no longer only look at how much something costs, but also at what conditions and what kind of experience they get.”

Price alone is the deciding factor

Today, online shoppers consider things in a much more complex way than a few years ago. Especially for higher-value products, it matters how reliable the store is, how fast the delivery is, how transparent the process is, and whether there is a possibility for flexible payment. In this environment, BNPL is becoming an increasingly important competitive tool.

The essence of the model is simple. The customer does not pay the price of the product or service in one lump sum, but in several installments. In the Pay-in-4 system, which is widespread in the domestic market, the purchase price is divided into four equal parts. In practice, this means that the buyer does not charge their monthly budget all at once, but distributes the expense over several periods.

“BNPL is important for merchants because it can dampen the price sensitivity of buyers,” said Géza Bruzsa. “If there is a price difference between two webshops, the option of paying in installments often bridges this. In such cases, the buyer not only looks at which offer is cheaper, but also at which one fits better into their own financial rhythm.”

The system can also bring tangible results on the merchant side. According to available data, BNPL increases the average basket value by 25–30 percent, and for stores with an average basket value below 100 thousand forints, an increase of up to 100 percent is possible. It also reduces cart abandonment and improves conversion.

Not the world of impulse buyers

For a long time, the simplistic image of BNPL was that it was mainly used by irresponsible, young impulse buyers. However, market experience shows otherwise. A significant number of users choose this solution not out of financial duress, but out of conscious planning.

“Domestic BNPL users are typically very conscious buyers, mostly in the 35–40 age group, and have an average net salary of around 600,000 forints,” said Géza Bruzsa. “They are a completely digitally mature group who use their bank cards and digital banking channels on a daily basis. For them, installment payments are not a forced option, but a convenient tool for smart management of family liquidity.”

From the perspective of merchants, it is also noteworthy that every fifth new BNPL user makes another purchase this way within six months.

It’s not just for tech anymore

BNPL first gained strength in the tech and gaming sectors, but it’s now available in a much wider range. For larger purchases, it’s particularly attractive to buyers if you don’t have to pay the entire amount in one month.

That’s why the model has also appeared in the area of ​​home renovation, where an unexpected or large purchase can be a serious burden on the family budget. In addition, in tourismand is also gaining ground in the hotel industry. In Hungary, the scheme has already been made available on a test basis at Hunguest Hotels and Hilaris Hotels.

Stricter rules are coming

As BNPL gains an ever-increasing role in trade, transparent operation is becoming increasingly important. The service can only build trust in the long term if the customer understands exactly what he is committing to.

“Responsible communication starts with the customer having to clearly see before making a decision exactly how much he will pay back, when the repayments are due, and whether any extra costs may arise,”

– said Géza Bruzsa. “Payment terms must be presented clearly and unambiguously, because this is the only way to build real trust in this market.”

Regulation will also play an increasingly important role in this. The 2026 tightening of the Consumer Credit Act, the Fhtv. is expected to provide the market with clearer frameworks. This is important not only for consumer protection reasons, but also because clearer regulation can strengthen the position of reliable actors.