Buy Now Pay Later has emerged as one of the most popular payment types these days among younger generations. Since its first introduction in the early 2010s, more than half of the US customers have taken advantage of the service.
Meanwhile, in the UK and India, the Buy Now Pay Later scheme was the fastest growing method of payment in 2020.
Working with high-risk merchant account processors to start integrating BNPL into your payment options for your business will increase sales conversion and reach new customers. If you are an eCommerce retailer and focused on business growth, the Buy Now Pay Later scheme could give you several benefits.
Advantages of Buy Now Pay Later
By offering BNPL to your customers, your business can benefit from the following:
Increased Conversion Rate
Customers are more likely to make a purchase if they do not have to pay for the whole amount in one transaction, particularly for large items. Customers are confident they can pay the amount over time without interest.
Protection From Fraud and Repayment
As a retailer, you will receive the full amount upfront regardless of whether the customer successfully pays the installments. This way also means that BNPL takes on the customer risk, protecting your business from fraudulent transactions.
Reach Wider Audience
Offering a variety of payment options attracts more customers, particularly the generation Z and millennials as well as those who do not have credit cards. Data revealed that 40+% of Generation Z and millennials use Buy Now Pay Later services for their online purchases. In addition, the email marketing and shop directory from BNPL services is a great platform to reach new customers.
Improved Overall Customer Experience
Buy Now Pay Later services provide customers flexible, convenient, and faster access to financing in just a few clicks. The majority of Buy Now Pay Later providers have easy-to-understand repayment terms and conditions with no separate applications and application fees.
Besides, most providers only run a soft credit check, making the whole process faster. With all these conveniences, returning customers and new ones check out with ease.
Brand Loyalt
Most customers would want to make online purchases based on their capacity to pay. Offering a convenient and affordable way to make purchases will foster relationships with your customers.
Creating a rewards program that incentivizes on-time payments will not only build customer loyalty but create a positive attitude toward responsible use of the Buy Now Pay Later service. With a system like this, customers get more out of the transaction.
Offer a Buy Now Pay Later option to your customers to drive sales, increase order value, attract new customers, and retain existing ones.
Stay on top of the competition by knowing what attracts customers. The benefits of Buy Now Pay Later are something your business and consumers cannot ignore.
