Author: chargeafterdev

Buy Now, Pay Later (BNPL) consumer financing is a powerful tool that can help increase sales, push up average order values, and encourage more repeat customers when utilized correctly. In a world where debt and credit have become taboo, BNPL solutions bridges the gap and gives consumers more flexibility and choices when purchasing at any store.

There is no doubt that the demand for this type of consumer financing is increasing, but in order for your business to leverage the full potential of Point Of Sale finance, your customers need to know that your store offers this service. How are your customers able to utilize the service if they have no idea that your store accepts this payment method? Knowledge is power and by offering your consumers as much information as possible, they are able to make wise and financially sound decisions when visiting your retail store. 

If you are new to Buy Now Pay Later, here are a few ways to get started:

Choose The Right POS Financing Partner

The first step is finding a trusted consumer financing partner that can be seamlessly integrated with your existing Point Of Sale system to ensure the checkout process runs smoothly and does not require any additional development, manual work, or costs. 

ChargeAfter is a multichannel, multi-country consumer financing platform that enables you to offer Point Of Sale consumer financing wherever your customers are and can be seamlessly integrated into your existing POS system, website, or call center operations. 

Scope Out The Costs

Everything boils down to cost in business. With most Buy Now, Pay Later solutions, there are some processing fees involved, which is usually a percentage taken from the sale transaction. Always ensure that you have done your research into the fees before settling on a Point Of Sale Financing Partner, you don’t want to end up being out of pocket at the end of the day.

Go For Waterfall Financing 

Ideally, you want high approval rates. What this means is that you want to ensure that your customers actually get approved for the financing to use in your store. Consumer financing partners like ChargeAfter have a large network of various prime, near-prime, and sub-prime lenders, which means that your consumers have a higher chance of getting approved even if they don’t qualify with prime lenders. If their application is rejected by prime lenders, they are then vetted against near-prime lenders. If they don’t qualify in the near-prime bracket, their application is then sent to sub-prime lenders for the final decision.

The entire process takes place on the merchant’s website without any redirects and takes only seconds. Because multiple lenders are checked in the waterfall, various rates and terms are available to shoppers once approved allowing the consumer to pick the best-personalized offer for them. 

Advertise Your Buy Now Pay Later (BNPL) Payment Solutions

Once you have partnered with ChargeAfter, it is time to announce it to your customers. One of the most effective ways to announce this is by sending out a mailer to all of your subscribers telling them about Buy Now Pay Later, you can also include a few of your top-selling products to entice your consumers to make the sale using your new Point Of Sale financing options. 

Put It On Display

Visuals are always effective when it comes to marketing your products and services. If you own an eCommerce store, use catchy banners, icons, or logos to advertise Buy Now, Pay Later services. If you have a brick-and-mortar store, you can use signage across the store to make your customers aware of your consumer financing. For example, make decals for shop fronts, mirror stickers in dressing rooms, and tent cards at the checkout counter.

Announce It On Social Platforms

Social commerce is thriving so what better way to encourage customers to use your Point Of Sale financing than posting it on your pages. You can create amazing eye-catching graphics on helpful tools like Canva to make your post more engaging and enticing.

Now that you have these tips in hand, it is time to partner up with reputable companies like ChargeAfter and announce it to the world!

Return customers and sustainable growth is something all businesses dream about. In order to reach these goals, one of the critical factors that lie on your shoulders is to ensure that your customers shop responsibly. After all, a broke customer is not returning to your store anytime soon, which is why you need to take certain measures to ensure your store does not leave them penniless when visiting your store for the first time. 

If your company is experiencing steady growth, here are a few ways to turn your buyers into repeat customers instead of completely broke ones.

Breaking The Turbulent Credit Cycle

Credit – it’s something that can really help out when you are stuck in a financial pickle, but it is also something that can cause utter financial devastation. Finding a middle ground between the two is a very rare skill only a few people master. And unfortunately, the cold hard truth is that the credit system is flawed and simply does not work for everyone’s pocket. 

Offering this as your only payment option at checkout is not only fueling the problem but also limiting your products to only a select few. There are thousands of shoppers who do not have access to credit cards or who simply don’t want them at all, and by limiting your payment options or encouraging customers to add further debt to their already fragile credit limit closes so many doors of opportunities for your business. If a customer blows their entire credit limit on one item from your store, they are less likely to return ever again thanks to the already painful experience of forking out hundreds of dollars they don’t have.  

The Solution – Buy Now Pay Later (BNPL)

Point of sale financing, BNPL, or Buy Now, Pay Later is helping shoppers to spend responsibly across the globe in various stores. This form of consumer financing enables shoppers to apply for smaller loans instantly without the fluctuating interest rates or unexpected fees associated with credit cards. 

There are serious consequences to missing a credit card payment and while Buy Now, Pay Later comes with its own consequences if not used responsibly, the main difference between the two is that Buy Now, Pay Later financing options come without interest and all costs are transparently presented to the customer before they finalize their check out. Whether a customer is applying for finance for electronics from your store, they will know exactly how much they will need to pay back to the lender over the predetermined time frame. The terms are clearly laid out, unlike credit cards where fees fluctuate and other surprise bills come in the mail. 

For example, offering online point of sale financing from ChargeAfter means that your customers now have direct access to a microloan that is risk and interest-free. The customer is presented with the payment plan details and the payback period. It is a win-win! They get the goods they want and the freedom to make more informed decisions while you as the merchant experience fewer cart abandonment and higher AOVs without watching your customers dive straight into debt like they would in the case of credit cards. 

Providing Transparent Information 

Information is one of the most powerful resources you can give to any consumer. Not only does this help build a lasting relationship with you shoppers built on trust, but it also enables them to make responsible and informed decisions. Being transparent about shipping costs, additional taxes, and payment terms and conditions upfront will go a long way for your business and gaining repeat customers!

Window shoppers, a term both eCommerce and retail stores are familiar with. Customers are browsing your website or looking in-store, but all too often, these customers leave with no goods in hand or in cart. As a business owner, this can be frustrating as you have managed to grab the shopper’s attention, but something has gone awry in the sales funnel. Brick and mortar and eCommerce stores should be taking essential steps to ensure these window shoppers turn into buyers. If you haven’t already implemented these solutions, here are helpful tips to get customers to buy.

Improve User Experience

User Experience is not just a buzzword, it is a crucial part of ensuring your success as a store owner. The more users have to search or click to find the product, price, or other important information, the more likely they are to leave your website. The same goes for physical retail stores. The shopping process should be seamless and your customers should be able to find what they are looking for with ease. Price tags are also essential. Make sure every item is clearly marked in your store. For eCommerce stores,  spend a little time going through the product pages and check out yourself to see what issues may be causing customers to drop off.

Create A Visual Experience

By nature, humans are visual creatures. A well laid out store or website with high-quality images, neat racks, and consistent branding is more likely to grab your consumer’s attention – and hold it. For online stores, products should be well presented, high quality, and a true representation of what you are offering. 

Offer Buy Now Pay Later (BNPL)

Many times, customers are forced to leave your store empty-handed simply because of cost. This does not necessarily mean you need to lower your prices to make the sale. Instead, a good solution is to give your customers flexible finance options like Buy Now, Pay Later (BNPL), or also known as Point Of Sale Financing. Both eCommerce and physical retail stores are able to widen their net and attract a larger market with these types of payment options. A shopper can purchase your goods without having to pay the full amount upfront or put the total amount on their credit card – which can lead to a never-ending cycle of debt. Instead, they are able to make more affordable monthly payments until the total price has been paid back to the lender. ChargeAfter provides merchants with waterfall lending options that can be integrated into existing websites or can also be utilized in physical retail stores at the checkout counter. And there is no limit to what you are able to offer financing for either. Buy Now Pay Later from ChargeAfter enables you to offer finance for electronics, financing for furniture, financing for mattresses and more. 

Advertise Your Buy Now Pay Later Options

If the customer doesn’t know what you offer, how are they supposed to take advantage of it? Use your payment and financing options to draw customers in. You can display these using banners or badges on your website and in physical retail stores, you can advertise your BNPL options with window stickers, pull up banners or even on flyers to give to potential customers passing by.

Beef Up Security

This point is particularly important for eCommerce. Your shoppers are giving you sensitive details when purchasing your products and want to know that all their data will be secure. Payment security should be top of mind, especially for unknown sites – or those who are just starting out. Reassure your customers that their data is safe with you by displaying badges from reputable payment providers.

The Bottom Line

The eCommerce and retail space is highly competitive, and in order to capture the market, you need to take extra measures to stand out from the crowd. By improving visual and user experience, offering flexible financing and making sure your website is secure, you will ensure that more window shoppers actually start converting into paying customers. 

Valentine’s Day is just around the corner, which is a welcoming holiday to warm everyone’s heart and put a pep in their step. However, Valentine’s Day may look a bit different in 2021 as we all adapt to the new socially distant protocol that has become our reality. Romantic dinners or heading out to a beautiful viewing spot may be off the table for many, but with the extra money saved on these fancy outings, couples may start bringing Valentine’s traditions closer to home with jewelry, flowers, and sweet treats. 

While some plans may be affected due to the current pandemic, more than 52% of adults in the US are still planning to celebrate the love with an expected total spend of $21.8 billion according to the National Retail Federation. This holiday is still an important one for online retailers, which means that preparation for this holiday is key if you want to capture your audience and bump up sales. 

Here are a few ways you can prepare your eCommerce store for all your head over heels customers:

Set The Tone

Tweaking the look and feel of your website to match the upcoming celebration will help attract shoppers who are in the spirit of love and also help to remind those who need to do any last-minute shopping for their partners. You don’t need to reinvent the wheel or change your entire website theme with hearts and roses, but you can implement some simple yet effective changes to woo your shoppers. Here are some ideas to get started:

1. Implement Valentine’s themed pop-up boxes with coupon codes or discounts. You can also use this pop up to remind customers of your Point Of Sales Financing or Buy Now Pay Later (BNPL) options from ChargeAfter for more expensive gifts like electronics, jewelry, or beauty products. 
2. Create some swoon-worthy slider banners for your homepage to set the mood.

Think Beyond Couples

While Valentine’s Day is aimed at romantic couples and partners, some prefer to use this holiday to celebrate their love for a family member, friends, and even their pets! Your eCommerce site should make it easy for shoppers to find exactly what they are looking for and this can be done with gift guides. Gift guides will help steer your shoppers in the right direction and can also be used to show them many other options you have in store. Whether someone is looking to spoil their cat, sister, or friend, your store should be prepared for these searches by presenting them with the exact items they are looking for. 

Creating gift guides based on these categories will also help entice your shoppers to purchase your goods. Give them unique and fun ideas on what items make the percentage gifts for their partners, friends, family, and of course pets. 

Any Product Can Be Romantic 

Valentine’s Day doesn’t just have to be about giving flowers and sweet treats, your product could also be the perfect gifting option when marketed correctly. Who says a new iPhone or laptop can’t be the most romantic gift out there? Some may argue that the price of electronics may be what sets shoppers back from making the final purchase, but with the right marketing and cart financing, shoppers will be more willing to check out. Use the beautifully designed pop up blocks we mentioned earlier to advertise your electronics financing options. This will help inform your customers that there are ways to get the goods they want without breaking the bank. Share the love with your customers by offering them buy now pay later solutions for jewelry, perfume, electronics, clothing, and more that is not only more affordable for them but also beneficial to you as the merchant to help increase average order values. 

Rethink Your Shipping

Share the love by giving free shipping for Valentine’s related items. Exorbitant shipping costs are usually a huge factor behind cart abandonment, which is why it couldn’t hurt to try to adjust your shipping model. If you can’t offer free shipping, work it into the product cost or be more transparent about it before the shopper gets to check out. It’s better to show the total costs upfront with shipping costs and taxes included than to show shoppers a much higher cost when they are ready to seal the deal and purchase the item. 

If free shipping isn’t viable, you could also look into offering free shipping for items over a certain amount. For example, give free shipping when a customer spends $50 or more. 

Make Your Customers Fall In Love

When done right your store can reap all the benefits of this Valentine’s Day without having to reinvent your entire business. Customers may not be celebrating the holiday the same way, but there are still ways to meet their needs even during the pandemic. By setting the mood on your site, offering point of sale financing options on your products, creating personalized gift guides and more affordable shipping you are able to win over all your shoppers and ensure that they keep coming back for more long after the honeymoon period is over!

In the eCommerce world, some terminology and certain buzzwords might sound the same, however, they have very different meanings and mechanisms in the online space. When it comes to financing, there are two phrases that have garnered the attention of merchants – Online Layaway and Point Of Sale financing, Buy Now Pay Later (BNPL), or POS financing as many refer to it. 

While there are slight similarities between the two online financing options, they differ in many ways. Point Of Sale financing has evolved in a way that benefits merchants and the consumers in more ways than the traditional Layaway model has. 

Let’s dive deeper into the history of Layaways and why POS Online finance is the new payment method merchants should be embracing.

The Rise Of Layaway

To put it simply, a Layaway is a purchasing agreement between the shopper and the merchant. The shopper is able to reserve an item they want and is given a predetermined period to make full payment by the merchant. Once the full payment is received over the agreed period, the shopper gets the goods. Failure to pay for the goods within the time frame means that the product is no longer reserved and the product gets put back on the shelf for other shoppers to purchase.  In this case, the shopper’s money is returned and a storage fee may be deducted from the total payment. 

This method of financing first came about during the period of The Great Depression. Many did not have the full amount upfront to purchase the goods they wanted. Merchants, who were aware of the economic situation at the time, allowed shoppers to make small payments when they were able to until the price of the item was paid in full. Only then was the shopper allowed to take the item home. This form of financing was only popular from the 1980s up until the 1990s thanks to the rise of credit cards. 

Credit cards had the upper hand as any customer could simply swipe their card and take their goods home on the very same day. Shoppers could pay back the financed amount to the lender with additional interest over the agreed period. Due to the edge credit cards had over Layaways, the demand for these plans declined. In 2008, when the Global Financial Crisis hit, credit became a luxury most could not afford or get access to as many customers defaulted on their existing repayment terms. Banks themselves also took a hit and were unable to recoup defaulted debts or offer any new lines of credit to existing customers. As a result, stores began offering Layaway plans again in order to increase plummeting revenue. 

Once eCommerce had firmly planted its foot in the door, traditional Layaway entered the digital space. Why the initial concept of Layaways stayed the same, customers were now able to select the option while shopping online. Customers were also able to schedule payments and collect their goods from distribution centers once the full amount was settled. The only thing that really changed in this space was that customers were able to save on storage fees. Online Layaways are still used for many purchases including electronics, concert tickets, gym equipment, travel, and homes. 

It makes sense why retailers and consumers alike take advantage of online Layaway especially when they don’t have the funds upfront for the goods. And for retailers there is very little risk in offering these plans, however, as consumer behavior evolves, Layaway plans are simply not meeting all the needs of the modern-day shopper, the same way a credit card isn’t fulfilling all the unique budget constraints most face today. In an Amazon-dominated space, it is becoming increasingly difficult to attract more customers with this type of online financing. It may appeal to those who are not able to get credit because credit checks are not as stringent as credit cards, but it simply does not feed into the instant gratification that customers demand. They want the goods they want right then and there without having to tie themselves down with the debt and risks associated with credit cards. Consumers are looking for financing options that are flexible and meet their unique needs without accruing hefty charges and debt. 

Point Of Sale Financing – The Revolution 

Online Layaway plans normally give customers a period of 8 to 12 weeks to pay for their goods, which for some may seem like a great deal, however, these plans usually come with interest and the terms of the finance agreement are not always transparent. Consumers only have a very short window in which to pay the full amount, or they risk losing out on the goods altogether. The delay in acquiring the goods also affects the user experience, which affects the ability of the merchant to retain those customers in the future. 

Point of Sale financing is the solution to these common problems. Whether it be financing for electronics or financing for mattresses, the consumer and the merchant both benefit from this payment method.

A consumer is able to finance the goods they want over a few months and take the goods home with them right then and there. Similar to Layaways, Buy Now Pay Later (BNPL) financing does not require stringent credit checks. The application takes only a few minutes and can be done without ever leaving the store or your website. This not only saves the customer time but also enhances the shopping journey. Quick applications, fast approvals, and minimal effort give customers the instant gratification they are looking for. Additionally, POS finance partners like ChargeAfter give consumers access to a network of reputable lenders whose payment terms are transparent and designed to meet their unique financial needs. 

Research shows that online merchants have seen a 9% increase in sales and a 33% increase in average order value when offering POS financing without taking on any additional risk. With Online Layaway plans, merchants have to wait until the full amount is paid, however, with POS finance, merchants get paid in full upfront. By offering Buy Now Pay Later solutions you are able to empower customer’s choices, reduce your risk and reap the benefits of increased sales and return customers. 

The Bottom Line

When choosing between POS financing and online Layaways, it is worth taking a closer look at what your customers want from the shopping experience. To put it simply, they are looking for secure ways to purchase your goods without putting themselves in unnecessary debt or having to wait weeks until they can take the items home. Point of Sale financing checks each of those boxes. While Layaway programs may have worked for the early 90s, the 2021 shopper expects more – simple, fast, and flexible consumer finance options that are tailored made for their unique financial circumstances. 

There is no doubt that flexible payment options like Point of Sale consumer financing have a lot of benefits in building your brand and business. Giving customers the freedom to purchase goods without creating financial burdens has enabled many businesses to continue thriving despite the pressures brought on by the current pandemic. The benefits of adopting this type of payment method can help drive sales, retain customer loyalty, and increase average order values. With this being said, it is also important to understand that in order to increase average order values and revenue, you need to create a seamless user experience and implement the correct marketing strategies to ensure more conversions on your platform. By doing this correctly, you are able to use Point of Sale financing to your advantage and harness all the positive benefits it has to offer. Here are a few tips on how to increase your AOVs using consumer financing from ChargeAfter.

A Recap On Point Of Sale Consumer Financing

Before we get into the details, here is a quick recap on Point of Sale Financing. 

Point of Sale consumer financing, also known as Buy Now, Pay Later, gives your shoppers the ability to purchase high ticket items without paying the full amount upfront. Instead, consumers are able to pay back the purchase in affordable monthly installments. Usually, the customer is able to select this option on check out. Once they have opted in for the finance payment option, their details are matched against ChargeAfter’s approved network of lenders. The customer is then given a wide range of payment options to choose from depending on their financial needs. As the merchant, you do not need to take on any of the risks or foot the bill for the loan. This is all taken care of by us. In addition to that, you don’t have to worry about any of the admin either!

Why You Should Offer Point Of Sale Consumer Financing?

While online shopping has boomed over the past couple of years, there are still a few issues that can stand in the way of a customer’s decision to complete a sale. Poor user experience, hidden shipping costs, tax costs, outdated information, limited security, and poor returns policies can cause your customers to abandon their carts and leave your site for good. Point of sale financing helps to address the costly tax and shipping costs and also provides more credibility in terms of your payment process. According to statistics, 30% of shoppers have said that they wouldn’t have completed their transactions if it weren’t for the Point of Sale financing option offered on checkout!

Now that you have an idea of just how effective offering Buy Now, Pay Later financing can be, here are a few ways to implement it on your site to ensure a seamless user experience for your customers:

Give Customers The Option To Finance Before CheckOut

Instead of waiting until your customers reach the checkout page, make it clear about the different types of payment options you offer earlier on in the customer journey. By promoting Buy Now, Pay Later services on the home or product pages you are able to capture the shopper’s attention and empower them to add more items to the cart without being too price sensitive. When customers are given more purchasing power, they are more likely to complete their transactions without the financial burdens.

Use Email Campaigns To Advertise Consumer Financing

Email marketing is an effective strategy for getting consumers to complete transactions once they have abandoned their cart. According to statistics, 46.1% of shoppers open emails related to cart abandonment. To entice the customer to complete their purchase, add a clear call to action in the mail that will encourage the consumer to take advantage of your Point of Sale financing options. Another helpful way to get shoppers to convert is to state how much they would owe you for the total basket value if they opted for financing. You could add an estimate of the monthly installments based on the value in their cart. By seeing a significantly smaller number, the consumer may feel more comfortable purchasing the goods. In most cases, seeing the value of opting for financing also entices the customer to add more items to the basket. 

Customize The Point Of Sale Financing Experience

Data protection and online security is a major concern for most shoppers, especially when it comes to purchasing goods online. It is already challenging to convince shoppers to trust your brand enough to enter their debit or credit card details online, and once a third party payment gateway is added to the mix, it could send them running for the hills. To ensure your customers feel safe and protected on your site it is best to use a Point of Sale consumer financing partner who enables you to customize the entire financing process. Fortunately, you don’t have to look far for this. ChargeAfter allows merchants to customize the entire point of sale checkout financing experience to match your identity and reassure customers that their data is safe in your hands – a brand they already love and trust!