As your online eCommerce store grows, it only makes sense to look for new ways to attract more customers and to make the customer journey easier and more accessible.
One way to give back to your customers, and make their interaction with you even better is providing a buy now, pay later (BNPL) service – allowing people to make purchases now and pay for them over time or within a specific time period.
It’s main purpose is to make high-ticket purchases more affordable and encourage impulse buys that result in better sales conversions.
How Does it Work?
The name says it all. Customers buy now, then pay later. Using a credit card, staggered payments give shoppers more financial freedom and increased purchasing power. And in the time of COVID-19, when people’s savings are reduced, this is more important than ever.
BNPL payments are usually split into 4-6 interest-free installments or paid in full within a certain amount of time. The exact breakdown depends on the credit card, the payment providers and your own preferences as a etailer.
What are the Benefits?
As online shopping skyrockets, adding extra payment methods to your eCommerce store is crucial to making good sales. Research shows that a buy now, pay later system can increase the sale of high-price goods by up to 25% compared to regular payment.
After all, a £1,000 TV is far more exciting and easy to buy in four payments of £250.
It also offers a minimum risk-high return solution for your business. As an online merchant, the most concerning part about fulfilling online orders is doing it before payment is made. With BNPL, you still get the entire payment up-front and the credit card company handles the split. Today, most providers also cover the risk of chargebacks and fraud too.
Finally, the buy now, pay later system offers the most flexibility at checkout and is a popular payment method overall. It will increase repeat shoppers as they appreciate the options to choose, and it also shows your store is trustworthy as it’s partnered with credit card providers.
Myk Baxter Marketing can help set up your UK eCommerce store to offer a range of payment methods that integrate seamlessly with your current or newly-developed system. Contact us today to find out more and get your customers spending more on their next visit.