As your online store grows, it is natural to look for creative ways to attract new customers and increase your revenue. One way to do just that is giving your customers more payment options. The solution that has been proving its value in the recent days is offering the “buy now, pay later” option.
The buy now, pay later (BNPL) method allows customers to make their purchase but pay for it later and over time, while full payment is still guaranteed in advance. This is a great way to make expensive items more accessible to wider audiences. Additionally, we increase the overall cart value and give financial freedom to current and new customers at the same time.
Why is it worthwhile?
- Huge potential to drive more sales
Online purchases are on the rise. Studies show that stores that offer BNPL have had a 25% increase in high-value product transactions. An item of 1,000 NIS is more tempting and “easier to digest” when it can be split and paid for in four installments of 250 NIS.
- Increase in the average cart value
BNPL is a smart solution that divides the total purchase amount into several payments. When customers fill their carts, the end sum can amount to a number high enough to deter the customer from finalizing the transaction. The very knowledge that the customer has the option to split their total charge encourages them to continue with the purchase.
- Minimum risk for the store owner
The merchant may be concerned that if the full payment isn’t paid upon purchase, the customer will decide not to pay their remaining payments. In case of BNPL, this risk does not exist, you will always receive all the payments as BNPL providers pay you directly and take responsibility for dealing with non-paying customers. Some vendors even cover repeated fraud, making it a win-win situation for the merchant.
- Higher flexibility at checkout
Customers are looking for more payment solutions. Combining BNPL with existing payment methods provides more financial flexibility and thus encourages the buyers to return. They will appreciate the ability to choose, and you will win your customers’ loyalty.
- Popular payment method
Consumer demand for the BNPL option continues to grow and more and more online businesses start to include it as the ideal payment option as it is very important to adapt your business to the pace of technological advancement.
In conclusion
Offering your customer a variety of payment methods is essential to the growth of your business. Buy now, pay later is one of the newest and most sought-after payment options and adding it to your site can expose your business to more customers and increase sales and overall success.
