The benefits of ‘Buy Now, Pay Later’ Tech For E-Commerce Business
We all know that the E-commerce industry is booming, and it definitely looks like it doesn’t show any signs of stopping. It almost seems like there’s a new app popping out of nowhere daily. Not only that, but this industry is also always coming up with new ways to innovate the market. One of them is the buy now, pay later technology. If you’ve already heard about it and you’re looking to integrate buy now, pay later tech for your e-commerce project you can learn more about it by following the link.
This new payment method is now popping up in just about any e-commerce app out there. But why is that? Doesn’t it seem like a bad idea to let your customer get your stuff now without paying on the spot? Actually no, many facts show why this is in fact a good move. And that’s what we are going to talk about today.
1. It Expands The Customer Base
By offering the BNPL method, you have the ability to attract more potential clients. Think about it from a consumer point of view. You may not have the money to afford the product you want. However, the store you’re looking at lets you pay only a portion of the price at first. You’ll be able to pay the rest of the money once you’ve got it.
Doesn’t it sound attractive to you? Aren’t you tempted to buy the product you want right now? My guess is yes, and that’s one of the reasons why this payment method is beneficial for online stores.
Not only that, but more and more people are starting to use BNPL exclusively. So, if your store does not offer this payment option, these people won’t even look at your products anymore.
2. Clients Will Have A Tendency To Spend More Money
I’m sure that just about everybody has been at that point in online shopping sprees where you just keep adding more and more stuff to your cart. But once you see the grand total, you simply get shocked and eventually abandon the entire cart.
BNPL is there to eliminate that shock. Knowing that they do not need to pay the entire sum right away, buyers will share a tendency to acquire more stuff.
Here’s an example. Let’s say that you’re selling a product for 900$. You offer three payment methods: paying 900$ all at once, paying 225$ a month for a period of 4 months, or paying 99$ a month for 10 months.
Chances are, that people will most likely skip the integral payment altogether. Now, it’s only between the 4 and 10-month payment options. Yes, you’ve done the maths and you’ve figured out that you’re going to end up paying 100$ more if you opt for the 10 months.
But the thing is, an online business has actually done that. And 90% of buyers opted for the ten-month plan. Not only that, but they managed to expand their customer base by 27% as well.
Why? It’s simple, people were more attracted by the smaller amount of monthly payment, even though it lasts more than twice as long as the 4-month plan.
3. Buyers Will Appreciate It
The more options you offer to your customers, the more they understand that you want to make their shopping experience as easy as possible. You’ll make them think that you care about them, and thus they’ll return to shop at your store again.
Here are the benefits of “Buy Now, Pay Later” Tech For E-Commerce Business that you might find it interesting to learn about.
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