BNPL or Buy Now Pay Later is now applicable globally. It’s a customer-friendly method of purchasing things where people can purchase things instantly but can pay over time by split payments or instalments with zero or very few extra charges. For example, Shopify is one of the biggest e-commerce platforms, and also provides BNPL opportunities to customers. Go and check to Buy now pay later Shopify.
Here are some factors to consider when choosing BNPL provider
How to compete with others
While thinking of introducing BNPL to your business, you must consider other competitors as well. Some other businesses out there in the market also provide the facility of BNPL to the customer. So you have to give better flexibility. You can provide more payment options with more flexible opportunities. This will catch more potential customer base and spread your business more. This is how your business will get a channel of growth among competitors.
Ease of payment
Customers always prefer the ease of payment. As they are paying in BNPL, they may pay in instalments. So every time they pay the money, the process should be easy and less time-consuming. As a merchant, you also have to consider that people, especially millennials, shun off credit cards and their high interests in them. So you have to provide a transparent and simpler paying method so they purchase more in future. Also, check the debit risk management and flexible options for the customers.
Retaining customers
Until you retain your previous customers you will not become that successful. A very good way to retain potential customers is through convenient BNPL plans. Let the customer be comfortable for how long they want to pay according to their convenience. Consider this strategy of allowing payment ease. Because during this period of paying, the customer tends to buy something more which leads to building strong engagement between the merchant and the customer. Loyalty develops there as well because the purchase of products increases later on.
Targeting younger generation
When you get the option of buying a product now and pay for it over time, you must not leave the opportunity. The BNPL paying method is now trending and not going to disappear soon. That is why the younger generation is preferring it more because they can get more time to pay the whole money and they keep purchasing things. So proper planning of BNPL is much needed as many stores are availing this. When a store is not providing this facility, it makes the store one step backwards than others. So consider the younger generation and plan according to them so that they can avail small instalments and buy more.
Fraud management
In credit cards, there are chances of fraud. But if you build a partnership with a trustable company to manage BNPL then the transaction can be protected. And there will be no fraud or chargeback risk. For example, Amazon has a BNPL partner with Citi.
Advantages of BNPL
Increase rate of conversion
By allowing smaller monthly payments, you can increase your sales. According to a report, more than 80% of revenue is generated by BNPL. Seeing a high price, people get disinterested when they cannot afford that. But BNPL reduces the price shock and decides it into much smaller and affordable prices. The AOV ( average order value ) also increases with increasing conversion rates and reduced cart abandonment.
Business in pandemic
Last year, many people lost their source of income. So they need a stable way of paying after purchasing necessities. BNPL has become very popular after the pandemic situation. Also, the merchant fees are very low ( around 8% ) so the customers can afford the price easily. And the popularity of BNPL will not fall in the near future. So this is the right time to introduce BNPL to your business network.
Big price products
Many retailers provide BNPL only on high priced products. It is very obvious that usually, people won’t ask for BNPL at lesser prices. So on big products with big price tags, the BNPL offers to apply to the customers. This affordable breakdown of high-ticket items generates more revenue for your store.
Late fee
As a late fee, the merchant can apply a minimum amount of changes to the customers. It can be a flat fee or percentage charge. This brings the store profit with no financial harm to the customers which is another advantage of BNPL.
Final thought
As BNPL is the latest trend of purchasing things by engaging potential customers, whether they are old or new, it is best for your store. For both online and offline businesses, an owner must introduce this proof in your store. Go and check to buy now pay later Shopify.