Why You Should Add “Buy Now, Pay Later” Option in Your Ecommerce Site?
WHAT DOES IT MEAN TO BUY NOW AND PAY LATER?
Customers who purchase goods and take them home and pay for them over time are referred to as buy now, pay later. It is a nice choice for someone who has to buy products and services in an emergency or when they don’t have enough money, and it increases the business’s credit score or without capital at times, because if the company pulls their initiative, their credit score will be impacted.
WHAT ARE THE MEASURES TO TAKE TO INCREASE SALES?
Options to buy now and pay later Addressing your customers’ questions at the front desk will help you boost revenue. As retailers began offering funding options like Buy Now Pay Later for Furniture and Bread, PayPal discovered that average order prices rose by 15%.
30% of shoppers using buy now, pay later options said they wouldn’t have made the purchase at all had it not been for the six-month financing that was offered to them. Buy now, pay later options can also result in a 17% increase in incremental sales
HOW BUY NOW PAY LATER IN ONLINE SHOPPING WORKS?
According to the study, more than two-thirds of all online shopping carts are abandoned. The second explanation most often cited was that the cart was getting too costly. When consumers see the entire size, they get the shock of the sticker. Providing an instalment payment solution that lets shoppers check out then and spend overtime significantly lowers cart drop-out rates. . For stores that have added Sezzle, the conversion rate has risen by 38.7 percent for the first time customers. Reducing the price shock of a one-time buy eliminates the dumping of the cart, which means further purchases.
HOW IS BNPL BENEFICIAL TO RETAILERS ?
Retailers with either in-store or e-commerce companies know the effect that lost carts or bad payment service may have on cash flow. That is why it is necessary to take steps to restrict these instances by introducing up-to-date payment plans such as Buy Now Pay Later for Furniture.
Businesses who give customers adjustable payment options see the immediate benefit:
Some businesses are seeing a rise in the Average Order Value (AOV) by more than 30%, which means that instalment payments enable greater orders of even high-priced goods, resulting in higher-priced sales.
And by resolving price objections and reducing cart abandonment, the companies selling Buy Now Pay Later note a 25 per cent rise in sales conversions. So, introducing a new payment option will open up new revenue streams for your company.
HOW TO ATTRACT MORE CUSTOMERS ?
If you want to optimize your scope, it is no longer enough to provide only credit card services. Credit cards are a perfect buying opportunity for the people who have them. However, the number of bank customers in your target demographic can be much less than you expect. Just one in three millennials holds a loan, according to a 2016 bank rate report.
There are several underlying reasons behind this statistic – from the 2008 credit crisis to growing student loan loans for young adults, to policy reforms that have made it increasingly expensive for credit card firms to expand their services to those under the age of 21. The main message for traders is that payment behavior for young customers is evolving drastically. Young shoppers are gradually hoping to be able to pay with a digital wallet, an alternative payment platform, or a repayment contract. By not having these solutions, you are leaving future purchases in your cart.
Some furniture shoppers are fleeing credit card payments in favor of cash or debit in Canada, too. That’s why stores are selling more purchases now, paying for options later on: In doing so, an increasingly common payment mechanism is being extended to Canadians in-store and online.
HOW IS BNPL AFFORDABLE TO CONSUMERS?
Customers are looking to escape bankruptcy and additional charges for the buying of furniture. When buyers have to make a major investment, the only thing they’ve got to think about is spending any more interest. Eighty-five percent of shoppers are interested in their favorite stores promising interest-free purchases today, then pay for options later. And while financing improves the comfort of your shoppers, there isn’t a good time for the customer.
In the market side, Bread does not offer deferred interest, unlike most suppliers of funding. This is where a financing agent applies a high unpaid interest rate to borrowers who do not repay their entire balance during the interest-free introductory phase. This could lead to rotating accounts, high APRs, and low customer service.
In the retailer hand, minus a nominal charge, you can collect the entire payout on all orders in advance, including the fact that consumers make monthly purchases.
WHY MORE MONEY IS SPENT BY BUYERS ?
For the flexibility of a payment package, people would probably spend more money on the same thing. By eliminating lump-sum transfers, buyers are willing to get more than what they require. They also benefit from a monthly budget that is more stable. As a result, you’ll be able to charge a little extra for certain products.
WHAT IS ADMINISTRATION FEES IN BNPL?
Providing recurring installments creates a slew of inconvenient logistical issues, as well as the risk of losing money if the user ceases making payments before finishing them all. Credit cards will run out of money before any of the purchases are received. Product returns can increase, reducing your sales while raising your time commitment.
WHY ARE PAYMENT OPTIONS FLEXIBLE?
The words “simple” and “flexible” come to mind when discussing Buy Now Pay Later. It’s not a “one size fits all” case when it comes to payment arrangements and minimum spend requirements for businesses. Retailers can continue to offer ‘Pay in 4,’ an interest-free, bi-weekly payment option that has little effect on a customer’s credit rating for smaller-ticket items. You are about to satisfy the financial needs of the new market by offering a Buy Now, Pay Later choice for buying furniture at the furniture store’s checkout counter.
WHAT ARE THE BENEFITS TO CUSTOMERS OF BUY NOW PAY LATER?
As opposed to other plans and choices, it is very easy to use. The procedure is so easy that even you can do it. Some Buy Now Pay Later platforms have a QR-code option that allows you to make a payment by merely scanning the code, while others allow you to finish BNPL transactions using UPI for any purchases like furniture. Consumers can make safe payments without swiping their card and PIN, entering their net banking records, or moving money from an e-wallet with the help of BNPL. All that is required is for an OTP to be produced and sent to their registered mobile phone.