Technology

#Top Benefits of offering Buy Now Pay Later Option

Top Benefits of offering Buy Now Pay Later Option

Day by day we become more upgraded. Like o us everything around us has been updated too. The shopping process is one part of it. Shopping has become a trend for today’s generation. Hence the number of shopaholics increases thoroughly. And if you are one of them, and listen about the buy now pay later policy then what will be your reaction? Yes, now this fantasy has become reality

What is “buy now pay later”!

Buy now pay later” is a scheme that is an example of point of sale financing. It allows customers to purchase goods on credit, usually on an installment basis.

There are many people who want to buy many things but can’t make an effort at one time. They can choose this strategy. For this, they have to pay a small amount when they are buying the product and another part in five or six installments. The retailer offers their customers these plans. By this scheme one can buy many products and don’t have to take a lot of pressure at one time. . It is a very useful process that can increase impulse buys and drive additional e-commerce sales.

It is a new wave of payment methods, which allow customers to buy an item and later pay in interest-free installments. But they get the interest-free installments for such a time period and if it is over they have to pay the interest.

Why should a retailer offer the Buy Now Pay Later Option to their customers?

Nowadays p has spread all over the world. It can help a buyer too much. But do you know why a retailer should offer this to their customers? Many people are wondering about it. But it can also give a lot of benefits to the retailer too. Here we are discussing the top Benefits that a retailer can get from the Buy Now Pay Later Option.

1.Reaching New Customers:

Customers are the key to a successful business. So as a retailer if you want to spread your business and want to get maximum benefit then the Buy Now Pay Later Option is perfect for you because it is no longer sufficient to offer only credit card options. Offering Credit cards is good for many customers but not for all because by research we come to know that only one in three millennials owns a credit.

But this buy now pay later option can help them. Many people don’t have the ability to buy an expensive thing with one payment. But this offer can help them. That is why many customers are attracted to your business. who were previously hesitant to buy products because the price was out of their budget. After launching this BNPL option the rate of sale has increased 600 percent. So don’t you think it can help you?

2.Higher conversion rate:

We all know the fluctuation of the economy during this pandemic period. The sudden changes come with many problems. In research, we came to know that in 2020, 88.05% of shopaholic people quit shopping online which was a 19% increase from 2019. Which is very harmful to an online business.

The business owner saw that most of the people search for products and add those on Cart but are not able to purchase them. It becomes very frustrating for them. But this Buy now and pay later scheme changes it. When the owners provide them this opportunity the customers started shopping again even in a tight financial situation. They can also get the opportunity of sales and promotional discounts currently offered by your online shop.

3.Staying competitive:

Now there is a lot of competition in the market. Everyone wants to get a perfect position in the market. So if your competitors are already accepting installment payments and you don’t then you will not be able to stay in the market for a long time. From an assumption, we come to know that by 2025  BNPL payments will increase to $680 billion in transaction volume worldwide.  So it is very important for you to choose this.

4.Giving customers an affordable financing solution:

When you Allow for better financial management to your customers it will ultimately provide the long-term growth and trust you need to bring in repeat and referral business. Due to the massively lower fees versus a credit card, it is also a highly desired option. Buy now pay later payment options are much more doable for the average consumer, but they are also cheaper in the long run.

5.Increased sales value:

When the customers get a lot of opportunities like these they always try to buy something from you. Because they don’t have to pay a single time. BNPL enhances customers’ pay in increments. They can get every flexibility while purchasing a product. So they can easily buy expensive things like jewelry and electronic gadgets. So the value of sales will increase as well. And when the average order value increases, you can get more and more profit as well.

6.Decreasing cart abandonment:

It is very depressing for a business owner to see their customers hop over their website and add products on the cart and can’t buy them just for some financial problem. So the buy now pays later option can help a person to decrease cart abandonment.

7.Improved customer lifetime value (CLV):

The buy now pays later option is applicable to increase your customer’s lifetime value. Loyal customers are very crucial for a business to grow. Maybe you have a lot of loyal customers who shop from you on an ongoing basis. With buy now pay later can influence the frequency or value of their purchases. So when they buy many more things your profit will increase. By a survey, we came to know that 31% of people would not buy the products if they didn’t get that opportunity.

Conclusion:

 Buy now pay later option has now spread all over the world. It can help a retailer as well as a consumer. So don’t wait, just have this opportunity today and make your business more successful.

Author Bio:

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.

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