Are you running an online store? Would you like to know how you can extend your reach and conquer more buyers? Have you heard of a Buy Now, Pay Later payment option?
Buy Now, Pay Later stores are gaining traction because of the advantages that they bring to both shoppers and merchants.
If you want to attract more customers and drive more traffic to your e-commerce portal, then subscribing to a Buy Now, Pay Later technological payment platform can help you do the job.
These days, more and more online merchants are enjoying the benefits that the Buy Now, Pay Later option is bringing to their e-commerce enterprise. Customers are delighted to have a better way to pay for their online purchases. In turn, merchants are enjoying higher returns on their investment.
With a competitive platform fee as your initial investment we don’t charge a platform fee, you can rake in the gains in several ways. All you need to do is to sign up, get your store added to the platform’s store directory, and start offering this payment option to your online customers. All these come at no risk to you because reputable Buy Now, Pay Later platform providers to pay merchants the order amount upfront.
With its simple plug-in, this kind of payment option has been integrated into several e-commerce platforms like Magento, OpenCart, Shopify, and WooCommerce. The modern API (Application Programming Interface) connectivity features also make it easier for you to seamlessly integrate it with your website.
So whether you are an online store selling professional audio equipment or one that uses e-commerce to sell toys, gadgets, or other goods, the Buy Now, Pay Later payment platform is a gateway to a more mutually beneficial relationship with your online clients.
Here are other ways that the Buy Now, Pay Later mode of payment can benefit your e-commerce business:
1. It Minimizes Risk for Merchants
As an online merchant, you can benefit from the Buy Now, Pay Later payment platform with zero risks on your end. This is because the platform company will pay you the order amount upfront minus the agreed-upon take-rate.
This payment system is advantageous to you because the payment firm takes on all the potential chargeback, fraud, or repayment risk and processing fees. The payment to you is guaranteed through bank transfer.
All that is left for you to do is to deliver the goods.
2. Buy Now, Pay Later Increases Customer Acquisition
This online payment platform can also help boost customer acquisition. It is reported to contribute at least a two percent increase in total site visitors.
Just as you invest in SEO or social media marketing, partnering with a tech payment company will allow you to offer varied payment options to your customers. Pair this with a smooth payment plan and user interface, and you can expect your online traffic to rise.
Not only that, but studies such as the Citizens Point of Sales Survey also found that 76% of online consumers in the U.S. are more likely to buy if a seamless and simple point of sale experience is available. The thought of also being able to satisfy their retail wishes by simply paying just a fraction of the original cost and paying the rest of the amount in phases is also a huge draw.
3. Buy Now, Pay Later Can Help Boost Sales
When you have a lot of interest coming in, then you can further drive them to check out their cart by offering a deferred payment plan. Buy Now, Pay Later options are found to increase shoppers’ basket size by 50 to 70 percent. In addition, it can also lead to a 20 to 40 percent conversion.
Investing in this payment platform will not only encourage your online shoppers to browse through your offerings but will also prompt them to become more confident while shopping. The idea of paying just 25% of the original price and paying for the rest in subsequent scheduled payments gives them more purchasing power.
Adding a flexible payment option to the whole customer journey will allow you around five to 15 times higher return on investment (ROI) through enhanced customer acquisition and conversion. Online stores that have used a flexible payment platform also observed a 42% increase in returning customers.
4. The Buy Now, Pay Later Payment Option Attracts Younger Shoppers
Young shoppers are mostly composed of millennials or those who are born within the period of 1981 to 1996. They are said to be the largest generation that comprises the workforce today. This generation has developed key characteristics and lifestyles that have shaped and transformed numerous consumer-based industries.
One of these traits is their preference for digital interactions that allow them to enjoy things and experiences with just a press, swipe, or click on a device. Instant gratification is also a key factor in their online experiences as well as flexible payment options.
Financial technologies such as the one offered by the Buy Now, Pay Later payment scheme is a huge magnet for people belonging to this age group who want to enjoy life without being burdened too much by budget or economic constraints. Since they are less likely to trust traditional financial institutions, the online version of layaway offers them the freedom to pay for their purchases over time without a credit card.
5. The Buy Now, Pay Later Option Offers More Advantages Than Credit Card Payments Do
Knowing that they can efficiently pay for their online purchases in installments also entices shoppers to push through with their shopping. This staggered payment arrangement, coupled with attractive 0% interest rates, can reduce cart abandonment as well.
This is not always the same case when using credit cards. A lot of people, especially millennials, are wary of the overly punitive consequences when these cards are used. Alternatively, merchants can also be saddled with credit card transaction and processing fees. Depending on your business model, these credit card charges can rack up and contribute to your major business expenditures.
As a business owner, the ideal scenario is for your venture to thrive and flourish with the least amount of burden on your end. Subscribing to a technological payment platform will not only draw your customers in with flexible payment options but also increase ROI and customer retention.
With a Buy Now, Pay Later option, it is not only your online customers who will enjoy the shopping experience. You will also reap the benefits of investing in a payment platform that converts your efforts into tangible benefits.