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BNPL has been around the corner for quite some time now. Businesses all around the globe are gradually embracing this new payment method – buy now pay later. Often referred to as the ‘point-of-sale installment loans,’ this payment method allows customers to purchase products and pay for the purchases over time.
This short-term financing process mostly asks for interest if buyers/customers miss the payment on the scheduled date. It alone has skyrocketed the growth of this payment method in the online retail world. Customers use the pay-later scheme to complete everyday purchases.
So, is it something that all businesses should integrate into their payment getaways? After all, more than 55% of online companies have already started offering it. Read more in the article.
The Top Benefits of offering BNPL to Customers
Helps Businesses Expand their Customer Base
Did you know that around 45% of buyers consider buying things that previously were out of their budget limits? By integrating BNPL into your business, your company encourages more customers to purchase what they couldn’t before.
It is a win-win situation for the seller because pay-later service providers complete the total payment to the merchant, i.e., your company, at the time of payment only. So, there is no financial risk involved whatsoever.
Boost Customer Satisfaction
No buyer loves adding products to the wishlist and leaving the site due to a shortage of funds. With the help of the purchase-now-pay-later method, customers get freedom and more control over their purchasing decisions.
Providing this method to your customers can help your company win them over. That’s because of the increased customer satisfaction from accessing the BNPL payment method. Surveys have found that retailers get incremental sales of 20-30% more with this payment method than traditional ones.
Customer Satisfaction brings Brand Loyalty.
Positive customer experiences mainly convert to more sales and brand loyalty.
If your business provides customers with a hassle-free experience when completing payments, they are more likely to return. A survey report showed that around 76% of US buyers would be more likely to make another purchase if offered a seamless and convenient payment system like buy-now-pay-later.
This is because this process eases the tedious process of paying after a purchase.
Increased Conversion Rates
If you have been in the business for quite a long time, you must have noticed how frustrating shopping cart abandonment is.
Some reports suggest that around 69.7% of online shopping carts were abandoned or left unpurchased in 2021. The reason for this is financial, and with the help of BNPL, it can be countered.
As customers get an interest-free installment payment process in their hands, shopping becomes more accessible than before.
The evolution in payments over the years has eased customers’ buying process. With buy now pay later, the checking-out process has revolutionized and replaced layaway programs. It has given buyers more power and convenience in how they want to complete their purchases. Customers today no longer need to wait for extended periods when doing physical shopping from a store. Nor do they need to take the hassles and complexities of credit card payments.
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