For online retailers, buy now, pay later offers:
– Higher conversion rates
– The ability to attract more shoppers
– Higher average order value (AOV)
– Better customer experience
– Flexibility when selling high-value goods
Ecommerce business owners like debit payments, but shoppers don’t always have the available funds to pay for what they want when they want it (so might instead want to pay for a purchase when they have received their next paycheck, for instance). By allowing more flexibility, BNPL can increase conversion rates and AOV, attract new customers who may prefer to use BNPL, and help to deliver a better customer experience. Its flexibility also allows online retailers to sell high-value goods more easily, as customers can spread out payments over several weeks or purchase something knowing that they will have the spending power to pay for it at a later date.
When using payments as a marketing tool, BNPL is a valuable resource for increasing conversion rates and AOV. Promoting BNPL as a payment method early in the customer journey boosts a consumer’s buying power by letting them know they can pay later. This is an effective way to increase a shopper’s likelihood to buy.
For shoppers, buy now, pay later offers:
– More flexibility
– Reduced interest payments
– Can facilitate bigger purchases
– Ease of use
There are many reasons why BNPL is becoming more popular with consumers, but undoubtedly one of the biggest is its flexibility. Shoppers can choose to pay in instalments and often decide how long they have to pay their balance. Allowing the purchase of more expensive goods is another reason it’s popular, and younger BNPL users say they prefer it to credit cards. In fact, a survey of more than 1,800 people found that the top reasons consumers use BNPL is to avoid using credit cards and to purchase high-value goods.
