The crisis prevalent since the end of 2019 has challenged the purchasing power of millions of consumers. As a result of the global economic slowdown, innumerable businesses come to a standstill without customers. In such a scenario, the concept of ‘Buy Now Pay Later (BNPL)’ can act as a boon and revive the situation. Through this financing option, customers can buy products and pay later. Though this credit facility sounds great for consumers, how does it benefit businesses and retailers?At KredX (MSME Atma Nirbhar and Development Initiative of India), an independent technology platform, businesses can get instant payment for the products sold through BNPL. Through the acquired money from KredX BNPL, individuals can ensure the growth of business in several ways. Let’s see how? But first, learn about BNPL in detail and how does it work?
What Is Buy Now Pay Later?
‘Buy Now Pay Later’- as the name suggests, is a short term financing option that enables consumers to purchase products and pay for the product(s) later (as per the chosen duration). You can pay for the product amount either in a lump sum amount or through EMIs. The process works in a similar way to a credit card, but buyers need not have any credit card or debit card.Individuals who choose to purchase through BNPL can split their purchases (both online and offline) into low to no-cost EMIs. Also, they can choose to pay the outstanding amount at a later date during the repayment cycle at no interest charges as per the terms of the BNPL service provider. In case an individual fails to repay the purchase amount within the stipulated time BNPL service provider can charge interest on the entire amount. Further, delay in repayment can negatively impact the credit score. As far as retailers or businesses are concerned, business persons can get paid in full through a partnership with a financing company.
How Can KredX BNPL Help Businesses to Grow?
Availing of BNPL facility through KredX app can help to grow your business in many ways of which the prime three are discussed below,
Attract New Customers
Businesses that use the ‘Buy Now Pay Later’ option can increase their customer base significantly. Through this, they can attract customers who are not only willing to purchase products from your store (be it online or offline) but also those who are unwilling to spend a large sum of money upfront. Thus, as a merchant, you can increase consumers’ purchasing power which will ultimately result in large scale sales and businesses. BNPL allows buyers for better financial management as they can become more responsible and gain financial freedom by opting for a seamless online payment option.
Increase Average Order Value
Cart conversion is an essential part of a business that helps a business to increase sales and grow simultaneously. There are several pricey products in a store which individuals may want to purchase but did not dare to spend a large amount of money upfront. Though they can purchase that product through a credit card, the interest charges will further increase the total cost. However, when a business adds BNPL services, they can increase sales as they can sell products (both pricey and low-cost) without any discounts. When buyers can purchase products and split the payment into monthly instalments, they can do so for other required items. Previously, if they had to wait to accumulate money for one product and then order for another, now they can purchase multiple products and clear their cart without punching a hole in their pocket at a time. Thus, with average increased orders, a business can grow rapidly and maintain the inventory cycle efficiently.
Maintain Cash Flow
When a buyer purchases a product through the ‘Buy Now Pay Later’ option, they get the product instantly but pay for it later. Hence, the merchant or company who sells the product gets the payment later in instalments which may create a revenue gap as product sales increase, but payment comes later. This may hamper the cash flow of a business.However, when a company or merchant adds BNPL service and makes a tie-up with a BNPL service provider like KredX, they can instantly cash against the sold-out product. Hence, they can continue business operations and maintain cash flow. By submitting only KYC documents, businesses can avail BNPL, get started in 10 minutes and resolve working capital issues.
How To Integrate A Business To KredX BNPL?
As a business or e-commerce merchant, you can include the ‘Buy Now Pay Later’ (BNPL) option at the payment gateway to allow payment in instalments for customers. At KredX, businesses can integrate their services in the following steps,Step-1- Visit the official website of KredX and fill out the form attached at the right side of the homepage.Step-2- Businesspersons have to sign up an agreement to imitate service with KredX. Step-3- Next, share important information for fast API integration with the online platform.Step-4- Once the integration is done, the BNPL extension will appear at the payment gateway of the registered business. Step-5- After that, buyers can purchase products from the concerned merchant website through BNPL. ‘Buy Now Pay Later’, as a financealternative from KredX, can not only help established businesses to resolve working capital issues but also to those who are new credit or have a low credit score. This micro-credit instrument can help businesses to attract new customers, increase sales, repeat purchases, build trust among customers, and continue their operations without any risk, thus growing at a rapid pace.
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