How Buy Now, Pay Later (BNPL) Options Can Help your Business
More recent enterprises have elevated it to a whole new level with the introduction of buy now, pay later. Customers can simply divide purchases into smaller installments with BNPL, which can be advantageous to both you and your clients.
If you want to give your consumers more convenience, you can decide whether to collaborate with BNPL providers. It is important to weigh the benefits and drawbacks of BNPL because it is also associated with high fees. According to Insider Intelligence, by the end of 2022, 44.1% of Gen Z buyers and 37.2% of millennials who are 14 and older would have utilised BNPL services at least once.
Draw in New Customers
Offering Buy Now Pay Later for business services can help to attract customers who hesitated whether or not to buy an item due to the high price. Cost-conscious clients can purchase luxury goods at the moment with little to no worry and convert their purchase installments into a zero-interest payment. As a result, businesses can welcome a large number of customers into their store.
Buyers can lower the cost of procurement by directing the installment through BNPL for the company, making it one of the most wonderful alternatives to using a credit card for purchases. In comparison to credit cards, customers need to be screened for credit check and have the commitment to maintain the card. For BNPL, the payment installment date is set clearly, and no credit card required too. It’s that convenient!
Reducing Customer Risk
Have you ever seen a consumer choose a bank transfer but then fail to pay for the items they ordered? BNPL stops this from occurring again. The risk of non-payment will be removed from your shoulders if you get into a contract with a BNPL provider. There is absolutely no danger that you must take. Your bank account will always receive the cost of the requested goods.
The fact that BNPL providers investigate your customers’ creditworthiness is another advantage of BNPL. They can therefore provide you with insightful comments regarding the financial situation of your clients. When establishing new client interactions, credit scores might be crucial.
Easy Return service
Customers prefer the BNPL option since it enables them to purchase goods and return them if they’re unhappy with them. The fact that they did not pay for it makes the return and refund process simple. The process of picking up the items from the customer’s home is likewise straightforward, and no reimbursement must be initiated.
Customers can have enjoyable shopping and continuing buying because they are not charged for the things, which also helps them avoid risk. When customers use their credit cards to make purchases, some products might not be returnable. The Buy Now Pay Later option is advantageous to customers since it gives them the chance to test products and swiftly return them if they aren’t what they expected.
Reduce the Cart Abandonment
An online business owner is not required to have products available for customers to add to their baskets. Customers may be hesitant to purchase them because they are pricey or because they have doubts about the quality of the goods. Due to the buy now pay later option, customers find it convenient to make purchases without paying in full up front.
As a result, customers can return items if they are unhappy with them after receiving them. The cart used to be overflowing with items, but now that the option to buy now and pay later is available, app administration can easily handle carts that aren’t overflowing with goods.
Boost Customer Lifetime Value
Customer lifetime value (CLV) is the sum of a customer’s lifetime purchases from a business. In the previous few years, the cost of living has gone up. The hardest task in such circumstances is keeping a customer interested. Small businesses can increase their customers’ purchasing power and lessen their financial stress by integrating Buy Now Pay Later.
Customers would be very enticed to make larger sums of payment in the future if BNPL is offered. It is best for businesses to promote the BNPL payment method significantly, rather than customers only knowing about it at the checkout page.
Online shoppers of today anticipate a variety of payment alternatives. 9.5 million Brits skip shopping at stores that don’t offer Buy Now Pay Later options, according to a recent Finder survey. According to a TRC Market Research survey conducted in 2021, the majority of customers make their payment arrangements before they reach the register.
Additionally, providing BNPL alternatives sooner in the shopping process can affect customers’ purchasing decisions. These results underline how crucial BNPL services are to customers and retailers. Customers may purchase elsewhere if you don’t offer this payment option since so many companies do so on their websites.
Merchants have a relatively safe opportunity to increase sales and gain new, younger customers with the buy now pay later services. Retailers should be aware that as this method of payment grows, so will the threats for fraud connected to it. Stay up to date on anti-fraud prevention tools.
BNPL is not currently governed by financial regulations, customers have limited security in the likely event of any financial dispute.