Buy Now Pay Later Is Everywhere, Should You Opt-In?
The pandemic has accelerated digitisation, forcing people to turn to online shopping and driving more BNPL players into the business arena. Buy Now Pay Later (BNPL) allows shoppers to break their purchase into equated monthly instalments (EMIs) with zero to low interest and without processing fee and pay the amount at a future date as per their preference. The benefit of buying without any upfront payment and flexible repayment terms makes this new age payment facility highly preferable among customers, especially Millennials and Generation Z.
No wonder the forecasts of a research firm (Redseer) that the BNPL market in India will touch a figure of $45-50 billion by 2026 from the current state of $3-3.5 billion. When millions of customers take advantage of BNPL, it indicates that retailers/businesses are offering the same and accumulating revenues to continue operations. In such a scenario, if you are confused or doubtful whether you should go for the merchant Buy Now Pay Later and add it to your business, this piece will be a great help for you! Read the following sections and decide the best for your business.
Retailers Move To Buy Now Pay Later Options- Here’s Are The Instances
The Buy Now Pay Later industry is booming in India as well as in the world. Online shopping platforms or service providers like Amazon, Makemytrip, Croma offer BNPL services and allow consumers to purchase products or avail services without making any instant payment.
Giants like Walmart adopted BNPL services, allowing customers/shoppers more time to repay the products purchased.
These online platforms are revolutionising the shopping and payment ecosystem by providing flexible EMI options and satisfying customer requirements across all categories.
A Small Dive Into The Working Methods Of Buy Now Pay Later
As the name suggests, Buy Now Pay Later allows shoppers to purchase and get the product instantly while paying for the same later. Here, the instalments vary from one company to another. This payment facility benefits both customers and businesses. After availing merchant Buy Now Pay Later, companies can sell products at credit and instantly receive payments of sold products.
Thus, by integrating BNPL at the payment gateway, business owners can guarantee nothing but more customers and revenue.
Therefore, if you are confused about whether or not to opt for the merchant Buy Now Pay Later option, read the benefits mentioned below.
Benefits Of Buy Now Pay Later
Merchant Buy Now Pay Later is becoming increasingly popular among business persons for several reasons. Read on to know about these in detail!
- Increases Average Order Value
Previously, customers who wanted to make a big-ticket purchase had to think twice before buying as they would have to pay the entire amount at one go or buy it through a credit card. In case they purchase through a credit card, they have to pay a high-interest rate, which would increase the total order amount.
However, BNPL rejects all these features that make customers hesitant to purchase big-ticket products and allows them to break up the payment as per their financial planning. In addition, businesses that sell low-priced products can enable consumers to purchase more products as they know they can pay the total time as per their convenience.
- Multiplies Cart Conversion
Customers always prefer a shopping website that offers repayment flexibility. Hence, if customers come to know that a particular shopping platform provides a buy now and pay later facility, they will purchase every required item instead of keeping those items in a cart or saving them for later.
Thus, businesses that have added Buy Now Pay Later at payment gateway can increase cart conversion rate, thus boosting overall sales. If the cart conversion rate increases, sales will improve; hence businesses can accumulate more revenue and maintain the operation cycle.
- Offers Better Customer Experience
BNPL services ensure a faster, hassle-free shopping experience. Here, consumers need not provide any card details as they would have to do for shopping with credit card or debit card shopping. Thus, they can shop for a particular product and exit the website almost instantly.
Soft credit checks may or may not occur depending on the BNPL providers. Further, consumers need not pay any fee, enhancing the shopping experience convenient.
The above-mentioned pointers easily convince businesses to opt for merchant Buy Now Pay Later. Now, retailers/merchants looking for such efficient providers can turn to BNPL providers like KredX and integrate the payment facility at the payment gateway.
This platform enables businesses to receive cash against the sold products and provide customers with their ordered products. The simple eligibility and quick API integration process allow businesses to offer BNPL facilities to customers in less than 24 hours (after application).
One of the biggest worries of a merchant or retailer is the shortfall of cash which can slow down their businesses. This fear gets washed away with the merchant Buy Now Pay Later facility as businesses receive payment instantly for the products sold whether customers have paid for the products or not. In short, BNPL providers offer customers their products and businesses the money they otherwise would receive in instalments. In addition, the benefits of BNPL integration to a company will now give businesspeople a chance to make an informed decision (whether they want more customers and establish their brands/website or not).