The popularity of BNPL is exploding for all the right reasons. It is a new type of arrangement that lets an individual pay for a purchase in installments that are interest-free. The installments can be paid over a few weeks or months, depending on the service. Buy now pay later offers seamless approval on the retailer’s checkout page. Online shopping witnessed a rising during the pandemic, and the graph is still upward. BNPL solutions are highly beneficial for businesses and have proven to increase customer conversion rates and more significant purchases.
Here are the top four benefits of Buy now pay later.
Four Benefits of BNPL Services
Increasing Sales
Most of the time, people are emotionally and mentally prepared to purchase but not financially. With BNPL, a business can transform its website visitors into customers by providing them with short-term financing.
Staying Competitive
Most reputable businesses are already offering their customers perks paying in installments. Also, it is estimated that BNPL services will be part of worldwide transactions by 2025. So, if you have already integrated the solution into your system, it is possible to stay competitive. Not having flexible payment options might leave your business behind in the race.
Affordable Financing Solution
Giving your customers flexible options will help them better manage their finances and provide long-term growth. It will build trust and gain potential customers through referrals. It is a more desirable option considering lower rates and interest-free installments. An average consumer will also prepare their mind to make a purchase and help earn more.
Attracting New Consumers
By providing payment options like buy now pay later, a business increases its chances of making a sale or attaining a new customer. People looking forward to buying a product might develop an interest considering the convenience. It also makes sense because they do not require you to pay extra to complete the entire payment. You will be amazed to discover that several customers specifically look for BNPL options while placing an order.
Tips on Choosing a BNPL Service Provider
The repayment options are the first consideration when choosing a service provider. Different providers offer different plans and terms ranging from weeks to years. Companies with higher average order value must opt for services providing a more extended repayment option. On the contrary, companies with low average order value should have providers with installments that span over a shorter span.
The location of your customers also impacts your choice of BNPL services. You will be interested in choosing a popular service in your target region to bring your customers under confidence.
Each customer’s spending limit will differ from another. Many BNPL services come with maximum and minimum credit limits. Therefore, businesses must review their customer’s average order value before selecting a provider. A company needs to offer customers enough credits to make their purchases.
Bottom Line
From increasing the customer lifetime value to decreasing car abandonment, the benefits of BNPL services are many. It will lead to the building of increased trust from the customers by offering them a better purchase experience. With so many service providers, it can take time to choose the perfect one. However, a business must understand its needs and customers before deciding.
Choose a BNPL solution that has an easy user interface. Read reviews to know how the customers are feeling about the services. Do ample research and integrate a reliable BNPL solution for your business. A BNPL system will allow customers to make significant purchases in installments with an interest-free and no-late fee arrangement.
