Buy Now Pay Later is gaining a lot of importance. Should you introduce it to your business? Will it benefit, or will it hinder?
In today’s scenario, everybody holds doubts, including a disbelief in others regarding money.
So, concerning all those conscious buyers, the buy now pay later idea proves to be effective. People also relate to this process as BNPL in short.
By the next few years, buy now pay later online shopping stores will be the most flourishing marketing strategy. This marketing process would attract maximum customers because this will be the most reliable medium in the era of deception and lying.
What is Buy Now Pay Later?
The theory behind buy now pay later is straight and clear. The clients finish by placing the essential product, but the difference comes in its transaction. Customers do not have to spend money to pay for the items when they are ordering, immediately. Instead, they hold a choice to give the sum as installments.
Buy now pay later shopping is slowly growing its roots inside the marketing sector. Soon this will become the most reliable trend to follow in entrepreneurship.
Advantages and disadvantages of Buy Now Pay Later Service:
The ‘ buy now, pay later ‘ seem to be an easy method in purchasing expensive goods due to the advantages that attract the customer.
- Convenient and fast Approvals
Unlike other ways, ‘ buy now, pay later ‘ transactions do not require credit checks or affect credit score, so they may be approved within minutes, making it fast.
Payments for any purchase always being in installments makes it easier to pay off the amount. And the amount and duration are set only by the provider and cannot be adjusted by the customer.
- Hassle-free payment
Payment is automatically deducted from the transaction account you mention when applying for the service, leaving no need to log into your account to prepare the amount of stay lined in front of the bank.
- No interest
Most BNPL providers in the market don’t charge any interest in the amount you borrow or the service you take. Only the fees are deducted for your respective account when payment is the due date.
Working of Buy Now Pay Later
We have now seen that buy now pay later remains very reliable and secured for the buyers.
An idea is present in the BNPL method that makes sure the sellers do not compromise their profit. The plan is that while continuing with BNPL, shoppers ought to join a contract that binds them to resume with the installment method of both principal and interest in the future.
Different buy now pay later online sites have different ways of proposing BNPL processes on their website. Some have a constant interest rate; some have a varying interest rate based on the purchase amount. Generally when you do online shopping for products like furniture, the interest rate and installment is high.
The reason behind the retailers offering BNPL
Let’s now understand how retailers benefit on introduction of BNPL.
- Enhanced buyer lifetime worth:
- Loyal customers who liked the retailer’s products and his methods will surely shop with him, exclusively.
- If there is no option of BNPL accessible to the buyers, then most of the customers might abandon their idea of purchasing accessories and goods. The reason being the fancy cart at checkout. On the other hand, with the BNPL option available, buyers would go on with the shopping.
- Increased conversions:
- According to the statistics, around 2/3rd of customers abandon their shopping when they reach the checkout.
- The carts where they have an option of BNPL have a comparatively shallow graph of buyers dropping their coach at checkout. The survey has interpreted that about 48% of customers may get influenced by payment choice one method or another.
- More substantial customer involvement:
- Better is your customer experience; better is the loyalty among retailers and buyers.
- Several payment options, many varieties of goods, and methods to shop are factors from a consumer’s viewpoint, creating a positive impression of the retailer.
How to start your own Buy Now Pay Later store?
After knowing about the BNPL process’s profits, you may be willing to start the BNPL option in your online market
Before you continue with the procedure, you are first required to find the most suitable BNPL service provider. Following are some points that you should keep in mind before choosing a BNPL companion:
- POS integration:
The abbreviation POS assigns the Point of Sale. You should make sure that the provider blends amidst your currently available POS system. With this method, you can reduce the quantity of hand-operated tasks, including double entry.
Make sure that you prefer only that service provider who has a well-maintained user base. Your service provider will advertise your repository to more people and bring in customers for you.
Primary elements of BNPL platforms
Almost every BNPL service possesses identical focusing elements. Some of them are as follows:
- Loan policy:
The course for small payments should be short, like weeks to months. For significant prices, it can go up to two years or more.
- Repayment rate:
Consumers repay in parts. The consumers know about the figure of installments. If an individual buyer is late in repaying an installment, then a late-fine charge is added to the installment for that specific installment.
BNPL platform makes loan approval and repayment easy concerning the client.
- No hardcopy:
Every step takes place online. Due to this, there is no requirement of preserving those papers safe and stacked in a bundle. You just have to snap on the screen, manage with the mouse, and the details get displayed on the screen without effort.
- Wide acceptance:
The business world has accepted the Buy Now Pay Later method. We are now talking about paying at the time of purchase. It may be possible that the payment method the buyer has, may not be available in the store during checkout.
We hope that we were able to explain about BNPL. BNPL is an option that a business person can add to his shopping app or site or in-store. BNPL is the most reliable method for customers and the most advantageous for the business. Buy now pay later online shopping has proved to be fruitful for the customers and the entrepreneurs. It is going to a brighter side for the business in the coming years.