For those who like to keep up with the latest shopping trends, it is not hard to notice that buy now pay later, which is abbreviated as BNPL, has grown in popularity in recent times, especially during the pandemic.
And it is not like it became popular among younger generations, no it is now the favorable shopping option for different age groups.
If you are a business owner who is still hesitant about providing the buy now pay later option to customers, you are missing a lot of benefits and profit. BNPL is guaranteed to boost your competitive ability if combined with high-quality products and services.
We will guide you through the process of adopting buy now pay later in your business. What is the buy now pay later payment option? How does it work for merchants? What are the benefits? We will answer all your questions.
What is Buy Now, Pay Later (BNPL)?
As the name suggests, buy now pay later is a payment option allowing customers to purchase products and services and not pay for them instantly. It is a very convenient choice for big purchases that a customer may be hesitant to complete.
Customers are allowed to delay their payment and divide the total amount of their purchase into installments. BNPL plans may allow the customer to pay in 4 installments and sometimes 3 installments. It differs from one plan to the other.
Buy now, pay later enables customers to delay the payment without charging them any interest. But it is up to you as a merchant to decide the numbers of installments, late installment payment fees, and what the customers would use as means of payment. The more flexible your BNPL, the more customers your business will attract.
How To Provide Customers with BNPL?
You probably know how payment processors work; you hire a third party to provide your business with the service. The same goes for BNPL. You hire a third party, a BNPL provider, that will allow you to offer the buy now pay later option to your customers.
The customer will shop through your store, and when checking out, they will choose to buy now and pay later. The third party will handle the installments and payment based on the chosen plan and make sure you get your money for a fee. You will receive the full payment in a few business days while customers pay the installments to the BNPL provider.
What Benefits Does BNPL Offer to Your Business?
Flexible and convenient, the buy now pay later payment option has so much to offer to your business including:
With big purchases, customers often find themselves wondering if they should go through with the purchase. It may be heavy on their paycheck, or maybe they don’t have enough to pay that huge amount of money at once. This may result in losing a lot of money for your business.
Knowing that they can actually pay for the things they want in installments, rather than paying the amount all at once, is definitely encouraging for the customer. They will forget about looking at the total and focus on the smaller amount they will pay this month.
And if your customers are satisfied with the flexibility your business offers, they will definitely have it on their favorite stores’ list.
Keep Up with Competition
As we mentioned earlier, BNPL is increasing in popularity. Many stores have it now, and if your customers find out that your competitor has a way to satisfy their needs better than you do, they will turn to them instead of you. So there you are, losing customers and profit.
But if you know that you offer the right products and services that customers love, why not stay on the safe side, and enhance your competitive advantage by incorporating BNPL in your business.
Building Customer Loyalty
Customers’ loyalty is something you earn by providing your customers with a seamless shopping experience. BNPL will help you grant your customers the shopping experience they desire. And with that, you guarantee your business will always be their first option and the one they recommend whenever asked about a store providing the product or service you provide.