Amazon already offers it, PayPal recently gave it a makeover and Klarna is growing rapidly. There's no getting around it: Buy Now, Pay Later (BNPL) is here to stay. For those who are not completely up to speed: via BNPL, shoppers make a purchase for which they only have to pay later. This can be done in one go or in installments, and often without interest.
The payment method has been around for a while, but thanks to a wave of new providers, it is currently gaining popularity worldwide. The market size of BNPL last year was 80 billion euros, and according to current data will be by 2030 even be 3.5 trillion.
The many benefits of Buy Now, Pay Later
Through BNPL, online retailers can…
– attract more shoppers
– increase their conversion rates
– increase their average order value (AOV)
– give their website visitors a better experience
– count on more flexibility when selling expensive goods
Online retailers prefer customers to pay in advance, but shoppers like to build in some extra security – especially if they’re making an expensive purchase. BNPL offers more flexibility and thus increases your conversion rates and AOV, improves the customer experience and helps you tap into a new target group: customers who prefer to pay afterwards. It is also easier to sell expensive items, because customers can pay in installments or all at once at a time that suits them.
When you use payments as a marketing tool, BNPL is a valuable tool for higher conversion rates and AOV. Show the payment method early in the customer journey and encourage customers to place an order. This way you let them know that they can pay later, for example when their salary has been received. This is an effective way to increase the likelihood of customers making a purchase.
BNPL offers shoppers…
– ease of use
– payments with lower interest
– an easy way to make large purchases
BNPL is becoming increasingly popular among consumers. A big reason for this is the flexibility of the payment method. Shoppers can pay in installments, and often decide for themselves how long it will take them. The ability to flexibly buy expensive goods is another reason why the payment method is so popular. Younger BNPL users even state that they prefer BNPL over credit cards. A survey of more than 1,800 people found that customers use BNPL to purchase credit cards. and to be able to buy expensive goods.
Are there any issues with Buy Now, Pay Later?
It may seem like a simple question, but it’s one that’s getting asked more and more as BNPL becomes more popular. Why? Because with BNPL – just like with credit cards, borrowing and overdrafts – you build up a debt. Saving money is always a good idea, but it’s not for everyone. In addition, you sometimes have to deal with unexpected large expenses – for expensive emergency repairs to your home, for example. Debt isn’t necessarily a bad thing, but you have to handle it responsibly. Read more about how you can help consumers in a responsible way of dealing with BNPL.
Add Buy Now, Pay Later to your website
By offering your customers their favorite payment methods, you gain their trust and increase your conversion. Buy Now, Pay Later has a lot of advantages, such as more sales, higher AOV and a better customer experience. And since it looks like BNPL is here to stay, it’s more important than ever to add the payment method to your website. Otherwise you might lose customers.
With Mollie you can add Klarna: Postpay to your website quickly and easily. After that you can immediately start processing payments. You only have to pay for successful transactions, with no hidden costs. Knowing more? Contact us and discover how our solution for efficient payments can boost your business, or discover more tips on e-commerce.