There are a number of ways in which a customer can pay when they seek goods or services from online stores, and the one that is most recently added is the buy now pay later service. The name of this service clearly suggests what it actually means, but just for better understanding, let’s discuss it. Buy Now Pay Later is a service that is provided by retailers and/or businessmen from which the customers can gain the benefit of purchasing products at a particular point of time and making payment for it over a period of time, which is most commonly termed as installments. You can also say that this method of payment is more consumers friendly. It is not a compulsion that these services can be used by the customers for luxury products only, rather it can be used for purchases of all kinds of products that an online store has to offer.
An online store owner can add BNPL services to its site using the aids from various buy now pay later tool. Here are some options that you can consider to include in you website to provide your customers with a better checkout experience.
- Klarna: it is a Swedish bank that has partnered in business with almost 20 countries and so, is also considered as one of the biggest players in the buy now pay later market services. With the help of this, the consumers can make payments for their purchases within six week in the form of four installments.
- Affirm: it is an app that is designed to aid consumers when they make purchases of all sizes. Not only that, it also supports everyday and small purchases that a person might have to make. Neither does it charge any fee to open or close an account nor does it charge any fee for repayment or late repayment in that case.
- Sezzle: it lets the customers divide the number of their purchases in four installments that they can pay for in the duration of six weeks. One of the benefits that consumers can have from using Sezzle is that they don’t have to pay any fee at that point of time and also there is no impact on their credit ratings.
- Quadpay: the approval for BNPL using Quadpay is quick and is achieved using soft credit checks. If you use Quadpay as your payment option, all that your customers will have to do is to choose the retailer and to type in the amount and then leave it up to Quadpay to do the rest of the work.
As an individual who is still in ifs and buts about using the BNPL method for payment, you must have the benefits that can come along with it. And so, lets discuss some of them right here.
- Increase in Sales: when your consumers have an option to pay later on the purchases they make, they tend to purchase more, thus there are a high chance that your sales may increase. And so, it is a major benefit.
- Attracting new customers: there are a number of people who are new to this kind of payment option and so they find it more appealing and change their interests from purchasing via debit cards and credit cards to the use of the BNPL method.
- Can be used to build trust: a customer can now very easily test your customers and establish their trust on your product and if they like it, it is very likely that they come back to purchase more. The customers can make proper judgment even before purchasing the product by seeing how much trust you have in your product knowing that there might be chances of returns and you might have to refund.
- A decrease in cart abandonment can be seen: one of the basic reasons that customers abandon the product that they wish to purchase is the lack of payment options presented by the online store owner. And it has been seen that the use of buy now pay later as a payment option can be of great use to decrease the issue of cart abandonment.
- A smoother checkout experience for customers: the buy now pay later option make the checkout from the site way more easier that in was before, thus making the customer experience way better than it was before, this wanting them want to come back to your site.
- To get edge over your competitors: it is a great way to gain an edge over your competitors and to convert their customers into your own. You might think why and how will you do so? We all know customers want what is new and are best for them and buy now pay later is surely a payment method people might want to indulge them in.
- A win-win situation: it is a win-win situation for both the customers as well as the online store owners as the use of buy now pay later option of payment option enables a better lifetime value.
- It is a better credit option for customers: buy now pay later is a way more affordable financing option for your customers that wish to purchase products from you but do not have enough money at the particular moment. No only this, but a buy now pay later method can be considered as a more safer option than debit and credit card loans, as it repayment process is way easier than both of them.
Conclusion
At the end of the day, it is your business and you are the one who knows better than anyone else what your business and its customers crave for the most. But it is also very important to remain up to date with the new technologies and provide your customers with the best experience. If we see in detail, BNPL is just another option to do so. Online stores all round are adopting this payment method to grow and develop their business, and the results for everyone (i.e. the shoppers, the service providers, the store owners) seen to be very good, and almost all of them are quite satisfied with it. If still don’t have buy now pay later option as one of your payment methods, it is high time you think of including it.