Every business sector wants to make money when a customer buys a product from them. But there are different payment methods that help the customers to be pocket friendly. There is one payment option that seems to be very convenient for the customers. These customers can buy their products now and can pay for the rest of the time like in installments. Seems very affordable right? With Buy Now Pay Later scheme customers can buy any products and can pay for the product later for a given period of time. You don’t have to swipe your card at the payment gateway anymore and you don’t have to worry about the reason for not having enough money for the product you buying. But now how will a business owner make a profit from this payment option. This payment option is good for the customers as they don’t have to pay the whole money at the time of buying but is it budget-friendly for the business? Should e-commerce websites and retailers can take the risk of the Buy Now Pay Later Scheme. What are the benefits of providing Buy Now Pay Later?
Increase in Sales
If your business is providing the BNPL option, you can see significant growth in your sales. As more customers will take the advantage of Buy Now Pay Later option. This will attract a wide range of customers to your business. Young customers who don’t have a credit card to pay for their products will find this payment option very useful. Offering installments option will let your customers complete the purchase without worrying about the total cost of the product. There is also an increase in conversion rate if you are letting people choose the BNPL option.
Customer Loyalty
You are letting your customer choose a different payment method. Not are also winning their trust. If you let your customers buy their desire products and they don’t have to worry about paying money at the time of purchase you are helping them to build a relationship with you. And loyalty is the most needed in running a business successfully. Your customers don’t even have to pay extra money while paying in installments for their purchase. They are just paying the due amount on a given period of time.
Different Choices
With Buy Now Pay Later you are giving your customers a choice to select another payment. Now as BNPL let your customer choose for how long they want to make the payment. This lets your buyer appreciate and get a better understanding of you. For new customers, this helps them to choose other payment options other than just card payment and the young generation believes in shopping for new products and they want to pay the amount on installments. You are attracting more customers with the BNPL option so they can enjoy their shopping without checking their pockets.
Pays More
Your customers are ready to pay more for the same product if you are giving them a monthly payment option. Buyers are looking for a way to buy their products which will cost them too much if they pay for the product at the time of purchase but if you let them choose to pay in installments for the same product your customers will happily buy the product without worrying of the cost. There is a significant growth in the buying rate for those businesses that are providing a Buy Now Pay Later option for their customers. you can even charge a bit more for the same products from the customers and they will buy from you without concerning that they had to pay more for the product because they are paying for the product on monthly basis. Buy Now Pay Later option is equally helpful for both the customers and the business. Customers found it easy and convenient to pay for the same product without even charging extra money and business growth can be seen. E-commerce websites find it easy to see growth in their total revenue and sales. If BNPL is used properly you can help thousands of customers and your business to grow at a rapid rate. Most customers are looking for a way to buy more products and pay for them later without even paying extra interest. So is this the end of the credit card era? Well not really because there are still many customers who are using cards to make a payment but the numbers are less as compared to BNPL. Not all customers have a credit card and young generations are mostly dependent on online payments so BNPL is best suited for younger generations as they can trust your company more and will buy more products from you.
Allison Janney is a Sales & Marketing Manager at ChargeAfter. She would like to share content on Finance Industry like Point of Sale financing, Buy now Pay later, consumer financing & Ecommerce financing for valuable reader.