Buy Now, Pay Later or BNPL is a payment option gathering much popularity, especially with the millennial. This payment scheme offers the consumers the option to buy products, take a trial and scan and pay if they like it. They can pay later in EMIs, or when their funds kick in. Like static QR codes or UPI scan codes, the ease of payments makes customers make impulse purchases, resulting in more sales for businesses. Large and small enterprises are making most of this opportunity by configuring this payment method for themselves. If you are one such business looking for more information, here’s why you should offer to buy now pay later to your customers too.
What is Buy Now Pay Later?
As discussed above, buy now pay later is a payment option which allows the customer to pay a percentage of their purchase at the time of shopping and pay the rest later in EMIs. The customer decides a tenure containing instalments, with or without interest, and these are collected by the payment BNPL provider at regular intervals. These can be availed by credit cardholders, as well as those who don’t have a line of credit approved on their name. Some BNPL providers charge this payment method at no additional cost, attracting more customers to make purchases without levying pressure on their wallet.
Why Should You Offer Buy Now Pay later?
- Tap on to the trend: The digital age requires businesses to hop on to the digital bandwagon too. From offering virtual payments such as static QR codes, UPI scan codes, payment wallets, etc., it is now time to attract more customers to their stores by trending. With Gen Z and millennials being more cautious and looking for a ‘free trial’ option before putting in their money, Buy Now Pay Later becomes a game-changer. This payment method offers the customers to pay part and take a trial before investing the entire amount. They can make impulse purchases without waiting for their salary day or dreading the pitfalls that credit cards pose. Young shoppers love the freedom to pay later in easy EMIs without burdening their pockets and de-stabilizing their monthly budget. Which means that more and more such shoppers will make purchases from your business without worrying about a cash crunch if you offer BNPL.
- Increase Your Conversions: You don’t want shoppers to add your products to the cart and abandon them when they see the total amount. You want to nudge them to make their purchase by offering them the ease of buying the products they love and paying them as and when they like. Offering easy instalments for your products will improve your conversions by removing the intimidation that big total cart value numbers pose to the customers.
- Reach more customers: As a business, you aim to reach as many consumers as possible. Limiting your payment options automatically narrows your audience. Consumers of today want transparency and limited risk. Most of them are shunning credit cards for the risks of debt traps they pose. If you are an online business, you cannot always rely on the cash-on-delivery payment method. Consumers want the freedom to pay according to their comfort. Whether it is by scanning a static QR code or a UPI scan code, making wallet payments or availing credit facility through BNPL, each new payment method you offer will open you up to a new set of consumers.
Buy Now Pay Later is one of the fastest ways to increased conversions. By offering ease of payments to customers, you boost your sales at a minimal cost.
Hey, this is Johny Sehgal. I am the owner and caretaker at Finance Jungle. I completed my education in BSC and now heading towards the digital marketing industry. I usually have interests in reading, playing games and watching movies. I also love to write content based on quality information. The main motive of mine is to provide the top and best quality information to my readers. Finance Jungle is the blog for the same.