In this increasingly digital marketplace, the positive consequence of offering diverse payment options in your eCommerce business cannot be stressed enough. The competitive market economy is continually striving to satisfy the needs of consumers instantly. One of the fundamental components for customer’s gratification is offering them their favored method of payment. Buy now pay later is one such payment solution that is gradually gaining significant popularity among digital shoppers.
Each method of payment functions differently. Although the use of credit cards might appear convenient, users are concerned of being able to meet the expenses later. In the current ecommerce shopping drive, the addition of buy now pay later option of payment is becoming quite an essential feature. This option not only holds beneficial for the consumers but is equally helpful to merchants and businesses. It offers to increase brand awareness, attract new visitors to your website, enhance the rate of conversion and much more.
With the steady rise of BNPL solutions, businesses are pondering whether this payment option should be offered by their online store as well. In this article we shall discuss the top reasons why buy now pay later payment methods must be introduced by ecommerce businesses.
What is BNPL?
The rising trend of buy now pay later payment avenues allow buyers a simple payment process where they receive the products during checkout without making having to make any payment upfront. Shoppers can complete the payment for their purchase over a period of time.
It is a highly flexible payment resolution that particularly attracts the younger generation of shoppers more. It is also a viable solution for those who are unable to buy what they like due to a crunch in funds at that very moment. It is a consumer-friendly and seamless alternative payment option. Unlike traditional shopping experience, consumers no longer need to wait to access their purchase until the completion of payment. They can make their payment quite hassle-free in installments over a due course of time.
Ecommerce platforms connect with buy now pay later service providers that make the payment on behalf of the customer. Alternatively, the BNPL providers offer a 14-day or 30-day window to shoppers for making the complete payment. The providers are careful to check the credibility of the customers before allowing them to access this interest-free easy process of payment. The payment gateway services also offer the provision for payments through installments. Subject to the policies of the BNPL providers, failure to make the payment within the mentioned time period might result in late fee payment.
Top Reasons to Incorporate BNPL to ecommerce Business
Let us look at the primary reasons why online business platforms are likely to provide their users with the buy now pay later payment choices.
Popular Choice among Young Consumers
One of the main reasons behind the rapid growth of BNPL payment methods is its increasing acceptance among the young generation of consumers. They want to access convenient ways of paying for their purchase. The buy now pay later is a modern trend of layaway being offered by big businesses where young shoppers are able to shop without the need for a credit card. Young consumers expect a hassle-free process where they can make the complete payment over a period of time.
Potential Increase in Sales
Instead of asking for the payment during checkout, when you offer buyers to spread their entire payment, there is a high chance for a rise in your sales. This helps capture more number of visitors who might select products but end up not buying them. BNPL helps to increase the conversion rates of such consumers. Buyers are enticed to purchase expensive products that they previously would have not. Therefore, a greater amount of sale is generated by businesses as shoppers are able to receive the products without immediate payment and pay for it flexibly over time. This also helps enrich consumer satisfaction.
Attract New Buyers
With an increase in online sales of goods and commodities, more and more people are opting for buy now pay later payment methods as it is enticing for people to spread their payment out without any interests being levied on them. Consumers are therefore searching for online stores where there is a provision for buy now pay later services.
Conversion of New Customers
Once new customers are enticed by this modern payment solution, the chances of converting them become higher. Customer acquisition is not enough if businesses are unable to convert and retain them. With different payment solutions and one of them being BNPL, the checkout process becomes smooth and attractive. Prospective customers are encouraged to make the purchase of their choice without any hesitation.
Lower Rate of Cart Abandonment
Most online store visitors load their cart with the items of their choice but abandon it during checkout. One way to reduce this trend is to add a variety of payment solutions including buy now pay later to minimize the interruptions during the process of checkout. BNPL is that extra payment method that makes a huge difference when it comes to both conversion rates and cart abandonment.
Improve Consumer Experience
Sales of online retail stores are likely to be boosted with the provision of BNPL at the time of checkout. It a smooth and simple payment experience enjoyed by both the retailer and the consumers. A simplified and convenient payment solution is always welcome in place of rigid traditional modes of making payments for purchase.
With a seamless payment resolution, online stores are able to build a stronger base of loyal customers. Users are able to trust platforms that offer buy now pay later options as they do not need to commit to the payment process at the point of checkout but can access their products of purchase. A small benefit for the customers can bring larger returns and build consumer trust in the long run.
For every eCommerce platform, the procedure of payment offered to consumers is a crucial feature that can bring significant impact upon the business. Buy now pay later, today is an exceedingly popular and accepted option of payment that has several benefits for the online marketplace.