Transform Your Business With Buy Now Pay Later
Since the pandemic hit the world, the economy and business patterns have changed. The need for social distancing and hassle-free transactions gave rise to the digital payment ecosystem. As per a report, the Indian digital ecosystem is anticipated to grow up to US$700 billion by 2022.
Now, people looking for a safer shopping experience can complete actions without any worry, and businesses can ensure increased sales and growth through this. Here, the question comes, ‘how are all these happening’? With the advent of Buy Now Pay Later (BNPL) in business, the eCommerce sector can justify the answer.
Wondering what is Buy Now Pay Later and how it can transform a business? Start reading, and you will get the answers!
Buy Now Pay Later: An Overview
Buy Now Pay Later are short-term financing/small-ticket loans that allow customers to make online and offline purchases and pay for them at a future date. Customers can choose to pay for the purchased products in a lump sum amount, or opt for zero to low-cost EMIs.
This payment facility enables consumers to make small-ticket purchases right away without paying anything upfront. Therefore, if an eighteen-year-old student wants to purchase a laptop and does not have a credit card, he/she can buy the same almost at the same price and break the payment into 6-8 EMIs.
This customer-centric definition is functional when a retailer offers this facility and frees them to pay the entire cost upfront. The growing need for touchless digital transactions and the added benefits of later payment can slowly take a business to the next level.
Operation Procedure of Buy Now Pay Later
Buy Now Pay Later follows the below-mentioned steps:
- Consumers purchase with a participating retailer and choose Buy Now Pay Later at the payment gateway.
- Once they get approval from participating retailers, they complete the purchase and repay the amount within a stipulated time.
- During this time, when a consumer completes the process required at the checkout, the third-party BNPL provider pays the merchant/participating retailer in full.
Thus, it is clear that BNPL benefits both the customer and the business. Consumers can purchase anything they wish without paying anything upfront and repay as per their preference at a future date; retailers can attract more customers and establish their brand name.
Transforming Your Business Through Buy Now Pay Later
Business transformation occurs when it can survive and thrive by pursuing innovation/technology-driven new opportunities. These types of transformation require operational, cultural and digital processes to align with customer demands.
Buy Now Pay Later provides businesses with opportunities to transform and almost take it to the next level. Companies can ensure certain benefits by accepting this new age digital technology and payment options. These are as follows,
- Increased Sales
Buy Now Pay Later is a good option for buyers (such as Generation Z and Millennials) who do not have credit cards hence cannot purchase products. Hence by integrating BNPL into the payment gateway, businesses can increase their sales. BNPL aims to include nearly 400 million Indians who reside outside the structured financial system to date.
- Enhanced Customer Experience
Consumers, including Millennials, want to have a hassle-free shopping experience where they can get superfast payment options, facilities like EMIs, and uncomplicated delivery. Here, if they get facilities like Buy Now Pay Later, it will add a feather to the crown. Thus, instant purchasing and the facility to make payment at a later date offer enhanced customer experience.
- Steady Cash Flow
When a business adds BNPL to the payment gateway, it can ensure consistent cash flow. As a retailer, business persons receive payment immediately, whether or not a customer pays their installments successfully. It means BNPL providers take all the customer risks to protect a business from all kinds of fraud and offer businesses with constant cash/funds to restock inventory. Think about the traditional business transaction model where retailers/merchants have to bear late payment, which negatively hampers the cash flow, thus growth. Therefore, it is clear that BNPL has transformed business activities very much and given it a new direction.
Currently, certain companies in India offer Buy Now Pay Later facilities. Business persons looking for an efficient BNPL provider can rely on the services available at KredX. The quick and easy digital application process allows retailers/businesses to get instant payment for the products sold, where the buyers get the chance to purchase products on credit without paying anything upfront with a convenient repayment window.
The integration of Buy Now Pay Later at the payment gateway has brought an unprecedented transformation in the business arena. This alternative solution to traditional credit-based instruments allows consumers to purchase products without paying instantly and repay as per their convenience. Millennials and Generation Z are more inclined to this new payment facility, and other consumers are also accepting it, leaving credit cards behind. No wonder one can expect a massive transformation of a business in terms of increased sales, enhanced customer experience, hence growth.