As the Ecommerce sector is picking up its speed in terms of growth, the option called Buy now pay later is also drawing more and more customers to make their shopping experience best. As a result, it is becoming the most popular option among online shoppers, especially since the COVID-19 hit from the year 2020.
Moreover, it not only allows its customers to pay full order amount over the period of time. Instead, these options don’t charge any additional fee or interest. Apart from customers, Buy now pay later is also benefiting merchants in the form of surging conversion rates, staying competitive, and not the least attracting new clients to their eCommerce store.
However, this option is best for a younger audience who don’t own credit cards and don’t want them. So, if you are the owner of any eCommerce store and looking forward to starting the option of buy now, pay later than this blog if written for you.
In this article, we will look at what is buy now pay later and its benefits for the merchants?
What is buy now pay later guaranteed approval?
Buy now, pay later (BNPL) is a micro-credit instrument for the consumers that helps allow spending facilities just like a credit card. That means the online shoppers can split their offline or online payments. That means the BNPL model allows consumers to finance their items with no payment or a small amount, and the remaining amount is paid in few installments at no or very low interest rates.
According to the latest report, 1 in 3 USA consumers benefit from the Buy now, pay later option. However, the best part of this option is that retailers have no risk as BNPL providers will handle all the cases themselves.
Benefits of Buy now, pay later.
No doubt, the market of BNPL has been eating the market share since the pandemic hit, which means its growth has skyrocketed. Below are the benefits that will explain everything you everything very clearly: –
Attract new customers
A BNPL or buy now pay later guaranteed approval option is undoubtedly attracting new customers to the eCommerce store who previously hesitated to buy any of the products just because they are running out of budget. One of the Ecommerce stores called Lifestyle brand Blackpool says its sales have rocketed 600% after it has launched the BNPL service.
Offering customers an affordable financing solution
If you allow your customers better financial management in the form of buying products, it will ultimately deliver long-term growth and trust for the business.
This is why more and more businesses are opting for this option of buy now and pay later.
Say bye to credit cards and say hello to flexible payments
There is no overall shift who are taking the benefit of BNPL, but with the passing time, it is increasing. In this regard, one of the recent surveys asks many people what financial success means to them? Around 60% of them said they were debt-free.
That means with a credit card, you have to pay high fees, and you will remain in debt for years. But in the case of Buy now, pay later, the shoppers are getting high flexibility, and retailers are staying competitive as through BNPL, the whole retail environment has changed.
Helps in increasing sales value
One retail provider called Klarna claims that after opting Buy now pay later, their sales value has increased around 33%. Because of which the conversion rate increases 20% and 60% in average checkout value. So, overall you can say the retails are getting high benefits from the payment method without applying any of the tactics like discounting.
Helps in getting more loyal customers
BNPL is indeed increasing the conversion rate, but the benefits don’t end there. One research shows that after implementing BNPL to the eCommerce store, the loyal customers are also increasing because of which repeat purchase has seen. One of the Zip partners reports that there is an around 80% increase in repeat customer rate.
Overall, you can say 1 in 3 BNPL online shoppers use this method once a month, and around 17% use it once a week. The result retailers are getting is due to the convenience, flexibility, and transparency of the BNPL benefits it offers to both customers and retailers.
Helps in building trust
No matter how good your eCommerce site is and applying the best marketing strategy, if no one is buying from your site, all your efforts will go in vain. So, in order to build trust and increase sales, entering BNPL will undoubtedly lead to an excellent customer experience. So, use BNPL to develop a growing relationship with customers for a long-lasting period.
The bottom line
Offering your customers many payment options like buy now, pay later is essential to boost customers’ experience and sales. So, apply BNPL to your eCommerce store and experience the real difference in profit you haven’t seen before with buy now pay later guaranteed approval.
Allison Janney is a Sales & Marketing Manager at ChargeAfter. She would like to share content on Finance Industry like Point of Sales financing, Buy now Pay later, consumer financing & Ecommerce financing for valuable reader.