5 Reasons Why Your Online Store Should Buy Now and Pay Later Option
Buy Now and Pay Later
Buy now, pay later is becoming a popular payment method among online shoppers, especially from last year when COVID-19 had hit the world. According to the recent report, it is found that the use of instalment payment methods has grown around 55% only in Spain. Now, you can well imagine the number all across the nations.
That’s why most online stores or every online store are looking forward to adding the option of BNPL. This will help to attract more and more customers and boost the revenue. Overall, buy now, pay later in a win-win payment option for both businesses and the consumers.
With BNPL, the customers can pay the total amount in affordable monthly instalments instead of the total amount in one go. However, the best part is that BNPL does not incur any extra fees or interest from the customers despite spreading the payment over time. Therefore, almost every online store is reaping out the benefits of buy now, pay later with higher customer acquisition, improved conversion rate, and remaining competitive in the market space.
Now the question arises apart from spreading out the payment in instalments what are the other benefits it offers to the businesses?
What is Buy now, pay later?
Basically, the option called buy now, pay later has been around in the world for many years, accumulated with several descriptions. However, some of the terms used are instalment payments, pay in 4, deferred billing, etc.
Whatever term you will use all have the same meaning. That is, consumers will buy a product, get it delivered, and will make payments over a period of time. Generally, instalments payments are made in 3, 4, 6 or 12 months until the total value is paid off.
E-commerce businesses BNPL providers
These days as you know that almost every business, both online and offline stores, are adopting the method of buy now, pay later because there is much repeat customer rate and increase in CLV.
Some of the companies offering BNPL are: –
- Amazon with Abunda
So, let’s take a deeper look at the top 5 reasons: –
- Buy now, pay later helps in increasing sales
Buy now, pay later option address the client’s pain points at checkout. It helps in driving sales and also orders value. According to the recent report by PayPal, the average order value of the customers for retailers had surged by 15% when they started offering finance.
Moreover, after taking this payment method, around 30% of the customers said they wouldn’t have made any of the purchases from the last six months as they are doing now. Additionally, because of this option, there is a 17% increase in incremental sales and with time, consumers’ financing triples average order values.
- Minimum risk for the retailers
If you look at the merchant perspective, the riskiest part is what if customers don’t pay after taking the product. But, if you are using BNPL, this risk is minimized because you will always receive the total payment upfront. That means the BNPL provider will pay you directly and have complete responsibility for non-paying customers.
Moreover, some of the buy now, pay later providers also cover the risk of chargebacks and fraud, so overall, it’s a win-win situation.
- Helps in attracting new customers
Every business is very well aware that acquiring customers takes so much effort and time. So, if you want to make those efforts worth it then offer the option of paying now and paying later at the checkout. In this regard, I also want to say that no matter how excellent an SEO strategy or social media campaign has to make your business profitable. Still, if the website checkout process is not seamless or doesn’t accept various payment options, potential customers will not convert into loyal ones.
Apart from that, due to COVID-19 from last year, most of the customers are not able to pay the total amount for the product as they don’t have much income. So, if you offer them the option of buy now, pay later they will think of buying your product which will boost your sales.
- Reduces cart abandonment
BNPL is the payment option that is helping online stores to grow more than ever before. Apart from that, it also reduces the impediments to checkout that generate abandoned carts. Overall, when customers enter the site and like any of the products, they will likely buy that product via buy now and pay later that stores offer.
- Becoming a famous payment option
These days almost every customer is demanding a BNPL option because of which online stores are starting to include it as the most convenient payment option. That’s why virtually every online store is adopting this method which harms your overall customer retention.
- Helps in building trust
No matter how excellent a content marketing strategy you have for your online store, it is good new people are entering your site, but it’s of no use when no one is buying. But if you enter BNPL, most customers will buy from your store, which will lead to an excellent customer experience and increased trust in your business.
The bottom line
As the owner of the ecommerce store, when you are considering which digital payment method you must add, think about your customers first. That means thinking about more choices. More convenience and that offers excellent affordability. So, accept digital payments like BNPL because companies can keep up with high ROI and permanent cart abandonment.