Daily Archives: February 5, 2025

Buy now, pay later installment payments increase retail spending, study finds

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[…]Buy now, pay later (BNPL) is an increasingly popular payment method, allowing customers to spread payment into interest-free installments over a few weeks or months. Worldwide BNPL spending was $316 billion in 2023 and is expected to grow to $450 billion by 2027. With major retailers such as Walmart and H&M partnering with BNPL providers like Affirm, Klarna, and Afterpay, over 45 million U.S. customers have adopted this payment method.

When customers choose BNPL installments at the checkout of a participating retailer, the bill is paid in full by the BNPL provider to the retailer. Customers pay the BNPL provider for the first installment at the time of purchase and repay the remaining interest-free installments over a short time period.

However, despite the growing popularity of BNPL installment payments, little is known about their impact on retail sales.

In this new study, the researchers use transactional data from a major U.S. retailer and find that BNPL installment payments boost spending. By allowing customers to pay for purchases in smaller, interest-free installments, BNPL boosts both the number of purchases and the average amount spent.

The study compares BNPL installment payments to upfront and delayed lump sum payments. BNPL consistently boosts spending across various products (e.g., party supplies, apparel, flights, mugs, coffee pods) and number of installments (e.g., three installments, four installments, six installments).

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This research offers actionable insights for various stakeholders:

  • Consumers can benefit by using BNPL installments as a tool for managing expenses by making them feel more in control of their budgets and less financially constrained.
  • Retail managers should consider integrating BNPL options to boost sales. Ang says that “Retailers benefit because adoption of installment payments leads to more frequent purchases and larger basket amounts. The difference is significant, with an increase in purchase incidence of approximately 9% and a relative increase in purchase amounts of approximately 10%.”
  • Policymakers need to be aware of the significant impact BNPL has on consumer spending to ensure regulations that protect consumers while fostering financial flexibility.
  • Societal stakeholders, including consumer advocates, should monitor BNPL’s growing influence to promote responsible practices.

Understanding the benefits and potential risks associated with BNPL is crucial as this payment method continues to reshape the retail landscape.

More information: Stijn Maesen et al, Buy Now, Pay Later: Impact of Installment Payments on Customer Purchases, Journal of Marketing (2024). DOI: 10.1177/00222429241282414

Source: Buy now, pay later installment payments increase retail spending, study finds

NASA Demonstrates Software ‘Brains’ Shared Across Satellite Swarms

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[…] Distributed Spacecraft Autonomy (DSA), allows individual spacecraft to make independent decisions while collaborating with each other to achieve common goals – all without human input.

NASA researchers have achieved multiple firsts in tests of such swarm technology as part of the agency’s DSA project. Managed at NASA’s Ames Research Center in California’s Silicon Valley, the DSA project develops software tools critical for future autonomous, distributed, and intelligent swarms that will need to interact with each other to achieve complex mission objectives.

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Distributed space missions rely on interactions between multiple spacecraft to achieve mission goals. Such missions can deliver better data to researchers and ensure continuous availability of critical spacecraft systems.

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Distributing autonomy across a group of interacting spacecraft allows for all spacecraft in a swarm to make decisions and is resistant to individual spacecraft failures.

The DSA team advanced swarm technology through two main efforts: the development of software for small spacecraft that was demonstrated in space during NASA’s Starling mission, which involved four CubeSat satellites operating as a swarm to test autonomous collaboration and operation with minimal human operation, and a scalability study of a simulated spacecraft swarm in a virtual lunar orbit.

Experimenting With DSA in Low Earth Orbit

The team gave Starling a challenging job: a fast-paced study of Earth’s ionosphere – where Earth’s atmosphere meets space – to show the swarm’s ability to collaborate and optimize science observations. The swarm decided what science to do on their own with no pre-programmed science observations from ground operators.

“We did not tell the spacecraft how to do their science,” said Adams. “The DSA team figured out what science Starling did only after the experiment was completed. That has never been done before and it’s very exciting!”

The accomplishments of DSA onboard Starling include the first fully distributed autonomous operation of multiple spacecraft, the first use of space-to-space communications to autonomously share status information between multiple spacecraft, the first demonstration of fully distributed reactive operations onboard multiple spacecraft, the first use of a general-purpose automated reasoning system onboard a spacecraft, and the first use of fully distributed automated planning onboard multiple spacecraft.

During the demonstration, which took place between August 2023 and May 2024, Starling’s swarm of spacecraft received GPS signals that pass through the ionosphere and reveal interesting – often fleeting – features for the swarm to focus on. Because the spacecraft constantly change position relative to each other, the GPS satellites, and the ionospheric environment, they needed to exchange information rapidly to stay on task.

Each Starling satellite analyzed and acted on its best results individually. When new information reached each spacecraft, new observation and action plans were analyzed, continuously enabling the swarm to adapt quickly to changing situations.

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The DSA lunar Position, Navigation, and Timing study demonstrated scalability of the swarm in a simulated environment. Over a two-year period, the team ran close to one hundred tests of more complex coordination between multiple spacecraft computers in both low- and high-altitude lunar orbit and showed that a swarm of up to 60 spacecraft is feasible.

The team is further developing DSA’s capabilities to allow mission operators to interact with even larger swarms – hundreds of spacecraft – as a single entity.

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Source: NASA Demonstrates Software ‘Brains’ Shared Across Satellite Swarms   – NASA