Increase Conversion Rate in B2B Checkout with KredX Pay Later
The Buy Now Pay Later transaction model has emerged as a forerunner of the economic trends of Indian businesses. More and more MSMEs are opting for this method to avail a short-term supply-chain-based financing solution. It is interesting to note how the merchants, too, can enjoy the benefits of offering Buy Now Pay Later for B2B payments.
For B2B BNPL, a financier like KredX works as an intermediary paying the upfront charges for raw materials or services that a small business gets from another firm. By integrating KredX Pay Later as one of the payment methods on your merchant website, a seller can get an immediate payment and increase their revenue from sales.
On the other, the flexible nature of the BNPL scheme is lucrative for the customers, who are likely to return to the seller for repeat purchases. The buyers can rest assured about getting sufficient cash flow to keep their businesses functioning properly. As a result, the average Customer Lifetime Value increases exponentially.
How Does Pay Later for B2B Payments Affect the Cart Conversion Rate?
Cart conversion rate underlines the percentage of website visitors that turn into potential buyers. This rate is calculated according to whether they download, fill out a form, or complete the purchase. It measures the effectiveness of a company’s checkout funnel by checking how many customers completed the payment.
However, attrition of potential customers can occur during the checkout for several reasons. Point-of-sale dropouts are largely a result of bad user experience on the visitor’s front. With BNPL B2B transactions, customers are more likely to follow through with the procedure. For instance, a survey of MasterCard has shown that integrating pay later for B2B payments can reduce the cart abandonment rate by 35%.
According to user experience research conducted by Baymard Institute, 48% of cart abandonments happen due to the shipping, tax fees and other costs being too high. When a merchant website integrates a BNPL service, customers can opt for comparatively high-priced products without worrying about budget concerns.
This lenient transaction structure allows them to enjoy the benefits of splitting up a hefty amount into cost-effective instalments. As a result, a customer is likely to invest in more than one product, leading to a high sales rate.
A complicated checkout system taking too much time to place an order can discourage viewers from buying a product. According to reports, almost 68% of potential buyers tend to abandon a cart before completing a purchase. KredX Pay Later for B2B payments uses an Application Programming Interface for a seamless checkout process.
Merchants can opt for an expeditious integration of this interface in their website. This API is capable of establishing a stable internal networking mechanism between system components. With its hassle-free and super-efficient checkout system, more customers are encouraged to complete payments. Up to 30% improvement in a company’s cart conversion rate has been observed with KredX Pay Later for B2B payments.
How KredX Pay Later for B2B Payments Help Businesses Save on Merchant Discount Rate
The MDR is a fee that every merchant has to pay to accept their customer’s credit or debit cards. Business owners generally have to pay a charge- ranging from around 1% to 3%– as a processing fee for each transaction. Over large volumes of transactions, these fees can add up to a significant amount.
Interestingly, as the popularity of e-commerce and digitised payment modes remain unmatched, BNPL is becoming a reliable alternative to card transactions. If merchant websites integrate KredX Pay Later for B2B Payments, they have the scope of saving up on this merchant discount rate by upto 2%. They can also choose to allot this saving to ensure that they can attract more buyers.
The merchants can disburse this fund in proper aspects of their trade management to ensure sustainable growth of the business. For instance, merchants can spend a significant outlay on designing a user-friendly checkout option. By offering different delivery options, establishing a clear communication channel with the customers or applying AI-backed analytics to monitor user behaviour, businesses can help exponentially reduce their cart abandonment rates.
Bottom Line
KredX Pay Later for B2B payments is a highly effective financial service capable of significantly increasing the cart conversion rate of merchants for B2B transactions. As a potential customer can be turned away due to complications in the checkout system, BNPL providers ensure a frictionless and API-integrated platform.
Offering BNPL payment options can be immensely helpful for small and medium enterprises struggling with cash flow. So, merchants offering this payment method are likely to seem a highly lucrative option for their potential business buyers. As a result, market experts have noted a 30-50% increase in average ticket size for businesses using pay later for B2B payments.
It must also be noted that there are manifold risk management and fraud protection protocols used by BNPL providers to mitigate the risk potential of a default account. The financiers use IP profiling and device tracking to establish the credibility of a customer applying for BNPL. As a result, the entire procedure remains completely transparent and secure for both parties involved.
