- BNPL Attract New Customers
The “Buy and pay later” option provides relief to those customers who are tight on budget. According to a Lifestyle brand Blackpool, enabling the BNPL increases their sales up to 600%. In addition, many customers who thought their premium products were out of their purchasing power also bought the high-end products in installments because they knew they did not have to pay interest on late payments.
- BNPL bring Repeat Purchases
The convenience, flexibility, and transparency of the Buy now, pay later feature increase loyalty, and more people come back to purchase more items. In addition, zip partner merchants report the BNPL increases the repeat purchase rate up to 80%.
Benefits for Customers
BNPL is easy to use, flexible, and interest-free payment method. And young shoppers appreciate it because they want to be debt-free.
Speaking of revolution, today’s consumers demand convenience s their priority.
Credit cards have terms that are confusing and difficult to recognize, with surprise fees and interest rates that make shoppers hesitant to use. On the other hand, BNPL is transparent. As it offers the convenience to pay the total amount in four installments without interest that customers demand.
Customers own a product before they make full payment.
Some stores offer to return the product if they don’t like it after the first installment and get a refund.
Sign-up is very easy and demands no security or credit score. You need to download an app and fill out the form with your full name, email address, phone number, date of birth, in some cases, social security number, and billing address. In addition, users of the App need to provide valid debit or credit card info for payments.
BNPL provides the ability to monitor and manage spending to shoppers.
Drawbacks of using BNPL
There are also some negative impacts you may face while using the BNPL method. Whenever a customer fails to pay in time or gets the default, he may get banned for future purchases. Late payments can affect your credit scores as well. Some BNPL service providers do not provide you with complete information when signing up, and you may have to face any surprising fee later.
Scope of BNPL
In the United States, the volume of BNPL payments will touch $100B in 2021 that is 4.3 more from 2020. BNPL merchant fees are relatively impervious, but retailers pay between 3% and 8% of the transaction value.
Moreover, only dividing the payment into four installments is not enough incentive for a visitor to turn into a buyer. Buyers demand tracking packages, wish lists, price-drop notifications, and try-before-you-buy features as well.
