If you're an e-commerce store business owner, then you know that the key to success is growth. And to achieve that growth, you need a strong payment processing solution in place.
That's where buy-now-pay-later (BNPL) comes in. BNPL solutions are becoming more and more popular and for good reason. They offer several benefits that can help your business grow.
In this article, we'll discuss why BNPL is the growth driver you need for 2023.
What is BNPL and How Does it Work?
Buy-now-pay-later (BNPL) is a type of financing that allows shoppers to purchase items and pay for them over time. The terms of the financing vary depending on the provider, but typically, shoppers have anywhere from two weeks to a few months to pay off their purchase.
There are a number of different BNPL providers out there, but some of the most popular ones include:
Why BNPL is the Growth Driver You Need?
There's no doubt that BNPL is one of the hottest trends in eCommerce right now. And for good reason! BNPL gives customers the ability to split their purchase into manageable installments, without incurring interest or fees. This makes it an appealing alternative to traditional credit products, which can often be expensive and difficult to obtain.
Best of all, BNPL can be used for a wide range of purchases, from everyday items to big-ticket items.
So why should you consider BNPL for your eCommerce store?
First, it's important to note that BNPL is growing at an incredible rate. According to Statista, the global BNPL market is expected to reach $576 billion by 2026. This rapid growth is being driven by many factors, including the increasing popularity of online shopping and the convenience of BNPL products.
In addition, more and more retailers are beginning to offer BNPL options, making it easier for customers to take advantage of this payment method.
There are many reasons why BNPL is a great option for your eCommerce store:
- It's growing at an incredible pace and is expected to become a mainstream payment method in the coming years.
- It offers a great alternative to traditional credit products, which can often be difficult to obtain and come with high-interest rates.
- BNPL can be used for a wide range of purchases, making it a versatile payment option for your customers.
If you're looking for a growth driver for your eCommerce store, BNPL is definitely worth considering!
Ways Your Online Business Can Benefit From BNPL
If you're not already offering BNPL as a payment option for your customers, you may wonder how it can benefit your business.
Here are a few ways that BNPL can help your online business grow:
1. Potential to Drive More Sales
BNPL can be a great way to drive more sales for your business. By offering this payment option, you'll make it easier for customers to purchase your products.
And since customers can spread out the cost of their purchase over time, they may be more likely to make a larger purchase than they would with a traditional credit product.
So if you're looking for a way to boost your sales, BNPL is definitely worth considering!
2. Customer Loyalty
Buy now pay later services are also excellent for promoting customer loyalty. If customers know they can get a product immediately and only have to pay for it later, they are more likely to return to your store in the future. This is especially true if you offer attractive payment terms, such as interest-free periods.
In today's competitive market, customer loyalty is more important than ever. By offering a buy now pay later service, you can give your customers an incentive to keep coming back to your store, which can ultimately lead to more sales and profits.
3. Higher Conversion Rate
One of the most important benefits of using BNPL is that it can help to increase your conversion rate. When customers see that they can pay for their purchase over time, they are more likely to complete the transaction.
In fact, data from statistics shows that merchants who offer BNPL see a 20% increase in conversion rates. This is a huge increase that can make a big difference to your bottom line.
Why Do Customers Prefer BNPL?
In recent years, the popularity of buy now, pay later (BNPL) services has exploded. There are now several different providers offering BNPL plans, and customers are increasingly taking advantage of these services. But what is it that makes BNPL so appealing? There are a few key reasons why customers prefer BNPL to other payment methods:
- BNPL allows customers to spread the cost of their purchase over a period of time. This can make expensive items more affordable, and it can help customers to budget for large purchases.
- BNPL plans typically come with interest-free periods, meaning that customers can avoid paying interest on their purchases.
- BNPL can be a convenient way to pay for online purchases, as it eliminates the need to enter credit card details.
For all these reasons, it's no wonder that BNPL is becoming the payment method of choice for many shoppers.
If you are undecided about which company to choose to implement on your eCommerce website, have a look at this Video which explains some key differences between the two major players on the market.
Afterpay vs Klarna: Which is the Best eCommerce Payment Solution for Businesses? – BNPL + Payments
How to Implement BNPL in Your Business?
If you're interested in implementing BNPL in your business, there are a few things you need to do.
First, you need to find a BNPL provider that meets your needs. There are many BNPL providers on the market, so it's important to do your research and find one that's right for you.
The most popular BNPL providers include Afterpay, Klarna, and ZipPay.
Once you've found a BNPL provider, you need to integrate the solution into your business. This depends on the platform you're using, but most providers offer easy-to-use tools that make integration a breeze.
Once the BNPL solution is integrated into your business, you need to promote it to your shoppers. This can be done through marketing campaigns, social media, and other channels.
Are BNPL available for every Business model?
Whether you own a online eCommerce website or a physical store selling high priced products, you will be able to apply for a Buy Now Pay Later merchant gateway.
Depending on your eligibility, you will have several options to choose from and surely enough adding this payment option will benefit your business through a revenue increase.
Customers can potentially be more prone to purchase a high ticket item, both in store and online, if they are given the chance of spreading its total cost over a few weeks rather than paying it all upfront.
For Online stores: All Major Payment providers will support both Wordpress/Woocommerce and Shopify. Make sure you look into their supported list of marketplaces before starting an application.
For Physical Stores: You customers will simply sign up upon checking out through a digital form and it will tell you if they are eligible for the installment plan or if they are not.
Tips for Promoting your BNPL Solution
As a business owner, you need to be aware of the various marketing strategies available to you in order to promote your BNPL solution.
Some of the most effective methods include:
- Creating a landing page specifically for BNPL payments on your website. This page should include a clear call-to-action (CTA) telling visitors that they can now pay for their purchases over time.
- Adding a banner or pop-up on your website announcing that you now offer BNPL payments.
- Writing blog posts or creating social media content about the benefits of using BNPL payments. Be sure to include a CTA that links to your landing page or checkout page.
- Running ads specifically for your BNPL solution.
- Social media platforms are a great way to promote your BNPL solution. You can use paid ads, organic posts, or even influencer marketing to get the word out.
No matter what method you choose, be sure to include a CTA so that your customers know how to take advantage of your BNPL solution.
Conclusion: Take Advantage of BNPL Today!
There's no doubt that BNPL is the future of e-commerce payments. By offering BNPL, you can give your shoppers the flexibility they need to make purchases without putting strain on their finances.
So what are you waiting for? If you're not already offering BNPL, now is the time to start. Your customers will thank you for it!
