One of the growing trends as a result of the impact of COVID-19 is the Buy Now Pay Later (BNPL) payment method of purchasing products. It allows customers to buy goods by paying for them later in a series of installments. About 46% of consumers in the US reported using BNPL to pay for their purchases during the pandemic. And what’s more, BNPL is expected to grow in Canada by 63.5% every year to reach $37 billion USD by 2028.
Merchants who want to attract new customers, find a competitive advantage, increase revenue, reduce abandoned carts and grow their business may benefit from BNPL services. However, with so many BNPL providers out there, choosing the right one can be tricky.
In order to give you the best chances of success when adopting a BNPL payment option, we will explore what BNPL is, how BNPL can benefit your business, and five conditions to consider when choosing a BNPL provider.
What Is Buy Now Pay Later?
BNPL is a type of short-term financing where a customer buys and receives goods immediately but pays for them in installments over time, while the merchant is settled for the full cost of the item at time of transaction
The Benefits of Buy Now Pay Later for Your Business
As a merchant you might be wondering what the benefits might be for integrating BNPL into your existing payment system? Aside from ensuring your business stays competitive by offering a preferred customer payment method, BNPL can also benefit your business by increasing:
5 Things to Consider When Choosing a Buy Now Pay Later (BNPL) Provider
The BNPL market is increasingly competitive, but not every BNPL provider is the same. With so many options available, you need to know exactly what to look for. Here are five things to consider when choosing a BNPL service provider:
1. Does the BNPL provider cross sell?
You worked hard for your customers, don’t allow your competition to market to them. A lot of BNPL providers market themselves as a super app, which could give you access to new customers. However, the flip side of this is that all other businesses get access to your customers. This can reduce your sales, and impact customer satisfaction as they will get increasingly marketed too – no one likes spam.
2. The Reputation of the Provider
Before you choose a BNPL provider, ensure you do your research. Check online review sites and find out what it’s like to work with the provider. See if they are a brand you can trust and if they provide a good quality service that would be beneficial to your business.
It’s also essential that you choose a BNPL provider that does not overpromise and is honest and realistic about how working with them can help your business grow.
3. Speed to Market
Choose a BNPL provider that offers quick and seamless compatibility with the current ecommerce business and POS system you have in place.
One BNPL provider that has an easy onboarding process is Gratify. With Gratify, your business can go live in as little as 10 minutes with very minimal effort on your side. If you are an online merchant, all you have to do is install a plugin to provide BNPL as a payment option to your customers. And, for in store sales, you can offer BNPL without any technical set-up.
4. Customer Security and Privacy
Customers want a secure way to pay for their purchases. They also don’t want to be left vulnerable to spam. A trustworthy BNPL provider such as Gratify makes the privacy of customer information a priority and will never share private information for cross-selling purposes.
5. Customer Retention
One of the advantages of offering a BNPL option is that your customers can purchase products they might not otherwise be able to afford at that moment in time. This not only allows you to sell higher ticket items, it also helps your business retain customers. Providing flexible payment options, with full transparency about fees, is key to growing customer loyalty.
Be sure to find a BNPL provider, such as Gratify, that offers an interest-free BNPL plan so you can pass the benefits on to your customers.
Final Thoughts
In order to reap the advantages of a BNPL payment option, it’s important to do your research and find a provider that’s a great fit for your business needs.
Look for quick onboarding options, no cross marketing, a privacy policy that doesn’t expose your customers to marketplace spam, and a realistic, no hidden-fees promise, such as that offered by Gratify.
How Can Payfirma Help?
Payfirma has partnered with Gratify to offer you an efficient and straightforward way of providing Buy Now Pay Later as a payment option for your customers. If you have any questions on how you can integrate BNPL payments into your business, please feel free to contact us at [email protected] or call us on our toll-free line at 1-800-957-0534.