A consumer financing option called BNPL (Buy Now, Pay Later) allows customers to buy goods or services and spread out their payments over time according to a pre-set payment plan. BNPL services are mostly offered by lending and financing platforms at the point of sale.

When a product or service is created by one company and branded under the name of another, this is known as a white label. BNPL white label service is offered by the financing platform of ChargeAfter.

 

Benefits of BNPL White Label

The most effective POS lending platforms are made available to customers by merchants with a white labeled multi-lender, BNPL  platform. Merchants can boost their sales and build consumer trust by using ChargeAfter’s white label product  —  as well as get the best and most modern financing software solution for their stores, both online and off.  Additionally, ChargeAfter’s multi-lender network and consumer financing platform is available for banks, acquirers, and other financial institution to implement white label services and provide BNPL consumer financing to their merchants.

 

Customizable White Label Services

ChargeAfter’s turnkey, BNPL white label platform is customizable for banks, acquirers, financial institutions and merchants, meaning that they can brand and offer our BNPL consumer financing platform as their own.

The platform is made up of many parts that may be adjusted without requiring the development of a new solution. Want to learn more? Schedule a demo or reach out to us here.

 

Want to learn more? Reach out to us here.

 

Buy Now Pay Later (BNPL) has emerged as one of the most popular trends in open banking, digital lending, and retail, with an expected projected value of $3.98 trillion by 2030. Big businesses are making money by allowing customers to make fast purchases without having to deal with the discomfort of paying for them right away. With such a profitable market and enormous potential for future expansion, banks must follow in the footsteps of the BNPL sector to avoid being left behind. Buy now, pay later, also known as shop now pay later services, is quickly replacing the conventional technique of getting bank credit, a personal loan, or a debit card to buy high-value goods or services.

Buy-now-pay-later (BNPL) is currently the fastest-growing online payment option in many economies as a result of the convergence of digitization, past years’ pandemic accelerated transition to online purchasing, and the growth of younger, active consumers. Customers appreciate having the option to make an immediate purchase and spread out their payment over multiple installments with no fees or interest if made on time. Additionally, BNPL is attractive to retailers as a technique for boosting sales and converting more customers.

Banks are getting ready to adopt buy now, pay later (BNPL), potentially in a significant way. More than 40% of consumers prefer to use BNPL choices from their banks rather than those offered by other businesses, but there is a need for urgency. Banks, meanwhile, have gotten into the game quite late, which makes it hard for those financial institutions to dominate the BNPL market and be better than already successful companies.

BNPL Popularity is Still Increasing

 

BNPL first grew in size in Australia and New Zealand before fast escalating in Europe, where the key brand leaders have emerged. In less than a year, the market in the UK increased to five million users. The US took longer to adopt BNPL, it is currently forecast that growth will meet or exceed that of some regions of Europe, with a predicted compound annual growth rate (CAGR) of 20.7 percent from 2021 to 2028.

These days, more people are using Buy Now Pay Later. Since 2019, the use of BNPL and POS financing has increased thrice in the US. Even though younger people tend to use consumer financing, in previous years all age groups have used it. There have been some misconceptions that BNPL financing is more popular with consumers who have lower income levels; however, recent figures indicate that popularity is rather evenly distributed across all income level categories. The BNPL option is more appealing to people with lower credit scores.

 

 

The Risks of Unregulated BNPL Services

 

Many European nations already have laws prohibiting credit or retail websites. Due to the clients’ massive debts to several BNPL financing platforms and the fact that the majority of them were not subject to any rules, the Consumer Financial Protection Bureau launched an inquiry in the US last December.

The BNPL model also causes the regulators to have a lot of concerns. When consumers used BNPL for their payment plan, we can see that in the cases of consumer financing for merchants and merchant financing for customers, 25% of the revenue for financing platforms came from missed payments. Another major issue is the lack of customer credit transparency. According to statistics, 10% of bank clients who used BNPL were already behind on their payments.

Banks Should Be More Active on the Market

 

Due to the fact that the majority of BNPL businesses that offer consumer financing to retailers are not facing federal banking requirements. It is obvious that those unregulated finance platforms, which issue consumers with an increasing number of debts, will expose them to risks over time.

Unregulated BNPL enterprises are already a problem and are facing opposition in several countries, like Australia and UK, because they provide customers with a variety of point of sale financing alternatives that, in most cases, leave them with enormous debts they may not be able to repay.

As it will be profitable for them to gain more clients and give them the opportunity to become industry leaders in BNPL services, this is the part where the banks should play a role. It will also be crucial for future customers, as it will help them avoid the risks of massive debt from unregulated consumer financing platforms.

How are the banks better? Because banks are regulated, both consumers and retailers can feel secure when breaking purchases into payment agreements.

Banks will need to decide whether or how they want to enter this industry as BNPL continues to grow. If they will not participate on time and delay their actions, they may be left without a huge number of customers with various credit demands.

How Can Banks Dominate

 

When merchants realize there are better and more secure choices available, they will switch to banks. Banks have the ability to plan for the future and play the long game. They can also modify consumer financing for small businesses to increase their clientele from numerous companies. Smaller merchants will be pleased to collaborate with financial institutions as well since this will help them avoid being burdened by bad BNPL debt.

Although fintech is currently more popular in the market, there are some steps with which the banks can overtake them. Due to the fact that traditional lenders can provide significantly better interest rates to both businesses and consumers, other Buy Now Pay Later services will also drop their interest rates.

Point of sale financing can also be available to BNPL banks. Numerous banks in Latin American nations have adopted BNPL at the point of sale using credit cards. Because it is so comfortable and simple to use, POS financing draws clients. Customers may easily spread out their payments over time. In pricey areas like healthcare or maintenance, it is quite possible for banks in the US and Europe to employ the same POS financing approach.

There are numerous examples of banks aiming to dominate the BNPL industry. For instance, we witnessed how The Commonwealth Bank of Australia (CBA) developed a new product called StepPay that has lower merchant charges and is a significant competitor on the BNPL market. Others are attempting to invest in infrastructure to create better apps or services and provide a better customer experience.

Fast innovation is more important than ever for legacy banking organizations to stay up with the quickly evolving digital market. These companies require clever, economical solutions. One strategy is implementing Bank BNPL White label products through partnerships with third parties. By implementing application programming interfaces, banks may react fast to new issues like Buy Now Pay Later. Products under the BNPL white label can change the market quickly and increase the number of customers for the BNPL banks.

Offering a retroactive plan that needs credit card ownership is not the only strategy that banking providers should employ if they want to enter the BNPL market with the greatest potential. As an alternative, they ought to provide a variety of financing solutions, and these, ought to be publicly accessible at the moment of sale.

The seamlessness of having Buy Now Pay Later available right away at the time of purchase, whether online or in-store, is eliminated by the retroactive model. Younger customers’ resistance to credit is also significantly influenced by the revolving nature and numerous hidden costs associated with credit cards. They, therefore, turn to pure plays for BNPL solutions as a result. BNPL is already available at the point of sale from some local banks in addition to card transactions.

BNPL Banks’ time to respond to this action is limited. They also have the resources, financial stability, and customer confidence to match these services. If they want to keep the loyalty of their younger clients, they cannot let this chance slip by. Even though it won’t be simple, it will be great for the banks themselves to be a part of one of the biggest and most well-liked financing solutions, and it will also make consumers safer to know that their debts are regulated and cannot harm their future finances. In the end, we can say with certainty that banks have a great future in the BNPL and consumer financing, if they understand how different market segments operate and learn how to appeal to the increasing groups, they may increase their market share in BNPL.

 

About ChargeAfter

 

ChargeAfter is a leading multi-lender platform for Buy Now pay later (BNPL) Consumer Financing. It connects businesses with the most reliable lenders, enabling them to offer customers the greatest financing solutions. With the best system of Waterfall Financing, ChargeAfter guarantees BNPL lending to every shopper, by matching the most relevant lender to every client. Using the unique consumer financing technology, ChargeAfter provides all parties, merchants, lenders, and consumers, with the best shopping experience. Phoenix, MUFG, VISA, Bradesco, BBVA, Synchrony, PICO Partners, CITI, Propel Venture Partners, Plug and Play, and other companies worldwide are among the investors of ChargeAfter.

 

Want to learn more? Reach out to us here.

Consumer financing in general and Buy Now Pay Later (BNPL) in particular provide clients with funds at the point of sale for the goods or services that best suit their needs. These days, it is the easiest and most convenient means of funding. With the ability to access funds, make purchases, and make payments over time, BNPL has been increasingly popular among clients because of its quick and simple experience. To maximize its benefits, lenders and retailers both use BNPL. They can raise the user base and sales since BNPL lending is the most popular financing option right now and has the most users, which ensures an increase in the clientele for both lenders and merchants and gives them the opportunity to become more successful.

What is BNPL White Label

Large fintech firms, including ChargeAfter, provide BNPL white label services to banks. When a bank chooses to use the BNPL white label option, they have access to all the financing platform’s features and can put the platform on any number of merchant websites that also want to use BNPL lending and consumer finance. The platform is branded with the bank’s name, which is the primary benefit of a white label. Therefore, the BNPL software will be developed by the fintech business, and the bank or the retailer will be able to utilize it under their name, giving them a more professional appearance and winning over more customers.

Using a Viennese Fintech company as a partner, Deutsche Bank recently gave businesses white label services. Retailers can employ the BNPL services and profit from the large bank.

ChargeAfter Global Lending Platform

Additionally, ChargeAfter offers BNPL white label services to banks and retailers. Employing ChargeAfter’s white label services is a fantastic helper for merchants and banks because it provides one of the fastest and most convenient services available. Offering your customers and clients the greatest financing platform could not be easier than this. The ChargeAfter platform has been improved over the years, and as a result, it is currently the most modern and ideal financing software. By utilizing its white-label services, banks may save time and money by using ChargeAfter’s platform with their branding.

Benefits for Retailers and Banks

White label services are one of the best solutions and can be helpful even for large banks, as demonstrated by the case of Deutsche Bank. The basic explanation for this is that BNPL lending and retail finance have both grown in popularity recently, forcing banks to either collaborate with or stay up with smart Fintech firms like ChargeAfter. The banks and ChargeAfter’s worldwide lending platform may work together to create the most appealing financing software, which will be made available to customers at the point of sale. Those kinds of collaborations are giving them more retailer clients as they benefit from the financing platforms as well, and a bigger client base, as BNPL lending, is in huge demand nowadays.

 

White Label Banking: The Future of Lending Services

White label services are being implemented by more banks, which is increasing consumer demand for BNPL. Traditional financial institutions have begun to collaborate with fintech firms and employ BNPL for banking services since they have observed that shop now pay later offerings are growing more appealing to consumers. Users enjoy digital forms of lending with options that are quicker, safer, and more comfortable, according to research from last year, which demonstrated that BNPL lending, POS financing, and other smart Fintech solutions are essential to the future of consumer financing. So, it follows that to maintain the quick pace of consumer financing advances, an increasing number of banks will work with Fintech firms like ChargeAfter.

Summary

Finally, given that banks must work with Fintech firms, we can conclude that selecting ChargeAfter’s leader financing platform for BNPL white label services will be a significant advancement for any institution. Every bank will benefit greatly from being able to participate in modern consumer financing experiences and ensure that their relationship with the retailers and customers is secure and stable through the strongest financing platform of the ChargeAfter network because ChargeAfter’s lending platform is already established and is trusted by many retailers around the world.

 

Want to learn more? Reach out to us here.

Various consumer finance solutions are provided by certain small businesses to their customers in an effort to expand and succeed in business. One of the options is to provide the consumers with the Point of sale financing. Point-of-sale (POS) finance is basically when a business provides credit to its clients so they can pay for goods or services right away. ChargeAfter is a well-known finance platform that offers your clients a variety of reliable lenders with vast experience. Putting it into practice can greatly benefit your company. Customers can use the BNPL (Buy Now Pay Later) option in this way to obtain funds for the goods or services they require right away and pay for them over time. So, what are the benefits of implementing POS financing in your small business?

Boost Sales

 

Giving customers a variety of consumer financing choices can significantly boost your sales. If you are the one offering the best and most solutions, you can be sure that the customers will choose your company. When people are shopping around for things, they always want to acquire the greatest deal on the market. The data and studies show that BNPL and other online finance choices are growing annually. This draws in more customers and boosts sales, especially if you can provide the best financing platform on your website. ChargeAfter can link your clients with a large number of lenders, giving the customers who use Buy Now Pay Later guaranteed approval and increasing sales for your business.

 

Better Conversion Rate

 

Every store today has the same issue: customers are adding things to their online or in-person shopping carts, but they still leave empty-handed. Providing various BNPL alternatives at the point of sale can boost conversion rates for your business. Customers visit your store because they are interested in the things you sell; the only factor that may prevent them from becoming customers is their financial status. You can be sure that more customers will be converted if your business can offer consumer financing choices like POS financing or BNPL. This will increase the number of satisfied customers of your business, and satisfied customers are more likely to become repeat buyers.

 

More Returning Clients

 

Providing your customers with the best consumer financing choices may encourage them to purchase your goods in the future. Nothing is guaranteed, but statistics show that businesses that use ChargeAfter as their financing platform have an increase in repeat customers. The reason for this is simple: ChargeAfter provides its customers with the finest financing options under the best terms. Customers will trust you more as a result, and they will definitely return to you the next time they need to make a purchase.

 

BNPL Increases AOV (Average Order Value)

 

Customers may end up paying extra when they visit your business if you offer them BNPL and point of sale financing. Consumers can order more goods or services when they have options for financing their demands and can spread out the payments over time. We observed that BNPL choices are raising AOV for businesses, so selecting the ideal financing solution platform, such as ChargeAfter, can raise average order value and boost the success of your company.

 

Finally, we can state with certainty that your online store should implement various online financing options if you do not want your business to lag behind due to the increased popularity of POS financing, digitalization in recent years, and the fact that the vast majority of customers are making purchases online.

 

About ChargeAfter

 

ChargeAfter is a leading multi-lender platform for Buy Now pay later (BNPL) Consumer Financing. It connects businesses with the most reliable lenders, enabling them to offer customers the greatest financing solutions. With the best system of Waterfall Financing, ChargeAfter guarantees BNPL lending to every shopper, by matching the most relevant lender to every client. Using the unique consumer financing technology, ChargeAfter provides all parties, merchants, lenders, and consumers, with the best shopping experience. Phoenix, MUFG, VISA, Bradesco, BBVA, Synchrony, PICO Partners, CITI, Propel Venture Partners, Plug and Play, and other companies worldwide are among the investors of ChargeAfter.

 

Want to learn more? Reach out to us here.

Nowadays, companies have possibilities to offer their customers different financing options. ChargeAfter is a financial platform that provides businesses with a Buy Now Pay Later option, leading them to get more new customers on the market, increase their income and average order value.

Advantages of Financing for the Customers

 

There are examples of big companies, which benefitted from a Consumer financing system. Point of sale financing is always a great way out of a situation when a customer doesn’t have enough cash to pay for a product. As more clients are using POS financing these days, that is where ChargeAfter comes in with the BNPL solution for them, to be able to split their purchases over a couple of months, instead of paying them all at once.

A financing platform, such as ChargeAfter, is a new opportunity for the buyer to get different offers from the lenders and finance their needs.

 

How BNPL Converts More Customers and Increases Sales

 

All the businesses are having the same issues when it comes to converting customers, companies see how their consumers are adding the products to their carts online, or checking them at shops and still leaving “empty-handed”. Most of the time, the problem is the financial situation at the time. The buy Now Pay Later system has improved those situations for the businesses and the customers.

When the buyers are using Consumer Financing options, they do not have to think about how much money they have at the moment, which gives them the possibility to get a product of a higher price and quality or purchase more quantity of it. With last research, we see that financing platforms are increasing the sales amount for the companies, showing us how businesses are becoming bigger and stronger with the help of POS Financing and the BNPL option.

 

Higher Average Order Value (AOV)

 

When you can split the payment for your customers, you are making your merchandise more affordable for them, giving them the possibility to purchase more expensive products.

Many big companies show that after implementing Point of Sale financing in their businesses, the average order value has increased. The reason behind it is that the BNPL gives the consumer the power to avoid fitting the budget process and they can simply purchase the products of their needs. So, if the customer had to buy a product that costs the amount they had at the time, now they can widen their interest, and with the help of Consumer Financing, they can purchase more. It is a great example of how BNPL benefits both companies and consumers and how comfortable solution POS Financing is.

 

Getting New Customers for the Company

 

When any customer is looking for an option to purchase a product or a service, they’re always trying to find the best offer available on the market. If the business is offering Point of Sale financing from their side, they have a much higher possibility to be the company that customers need. Consumers prefer to choose the Consumer financing option over paying the price at once.

Companies that have a Consumer Financing option have an advantage over their competitors in attracting new customers. To put it in simple terms, if the buyer has two options, to pay the price totally, or split the payment using BNPL. Even in the situations when the customer has a total amount, they prefer to use the Buy Now Pay Later option, as people don’t want to spend all their finances at once and prefer to save it for emergencies.

 

Returning Customers Make Businesses Strong

 

Point of Sale financing programs encourages existing customers to return to businesses and reorder the products or make even bigger purchases. Everyone knows that a happy customer is a key to companies’ success. So, when the consumer already knows how comfortable BNPL is, and how they can use Consumer financing, they will never go to competitor businesses who might not offer Buy Now Pay Later option and will always be the returning customer of the company.

As with ChargeAfter, any business can implement the BNPL option, they can know for sure, that most of their customers will come back to reorder and experience the comfortability of POS financing.

With All these advantages of financing, ChargeAfter can give any company great value, offering them the possibility to close more sales and give their customer a much better experience with Buy Now Pay Later option.

 

Want to learn more? Reach out to us here.

Before ChargeAfter

 

During an interview with The Fintech BluePrint, Meidad Sharon, CEO of ChargeAfter, a top worldwide lending platform, discussed how ChargeAfter was founded and how the demand for consumer financing and BNPL drove him to build one of the best global financing platforms in the world.  Meidad discusses how at the time he worked at SafeCharge Nuvei, the financing and payment market was in desperate need of a smart and quick platform for consumer financing. The right and effective strategy was therefore required to create the firm that would serve as a link between retailers, customers, and lenders and assist them all to have the best possible shopping and business experiences.

What was the best course of action? The key concerns at the time, according to Meidad, were identifying which methods would be successful and figuring out how to apply them. Which customer segment should you target, and how can you convince them to buy your products? How to move your business on the proper path and what the next steps are. The most important step after strategizing is to observe how your plan performs in practice and which market segments it affects. The solutions and the secret to success are revealed in the first results.

 

Why was ChargeAfter necessary

 

Meidad Sharon discussed the inspiration behind one of the greatest BNPL Fintech companies in the globe during an interview. Speaking about his experiences while working at SafeCharge between 2010 and 2016, he described how businesses requested consumer financing options like loans and credits to increase sales and the number of customers they had. The prior numbers were incredibly low because only a small portion of customers who were browsing internet shops made any purchases.

“Only 3% of the consumers that are reaching the website end up buying”, said Meidad during the interview.

Due to the rapid expansion of e-commerce and online stores, Fintech businesses have to be established to meet the demands of both customers and business owners. There were two key causes behind that, as Meidad stated. The ability to create a global lending platform to provide consumer financing, and secure payments, because fraud was on the rise, and give all parties the fastest shopping experience was made possible by two factors: first, the innovators became the mainstream on the market, and second, the customers became more sophisticated and demanding.

Meidad responded that the payment is always the end of the tunnel in whatever type of business when asked why he picked the consumer financing and BNPL fields. Retailers, customers, and lenders are the three main parties that make up a global lending or financing platform. One of these parties constantly creates market opportunities, giving financing platforms the chance to expand while also assisting other businesses, from local to global ones, to achieve success. According to Meidad, the path was challenging but intriguing because it took time to develop the best platform, and using Visa and Mastercard’s features and services was essential to resolving issues and making the platform the market leader.

 

How has it started

 

Meidad also discussed the origins of the business and the first stages of success. ChargeAfter launched quickly to receive the first reviews since it combined financing expertise with experience working with various customers and merchant types. As he previously stated, the initial experience was quite exciting, the business was focused on the market and the requirements of retailers and customers. The next stage was to develop the product in light of feedback from the initial phases and expand the distribution of the service to new customers and lenders.

 

Where is ChargeAfter Now?

 

Meidad talked about the challenges ChargeAfter faced and the current difficulty they are working on. The majority of financing platforms were still rejecting 70 percent of applications. There were so many consumer financing choices, such as loans and installment payments, accessible on the market. There wasn’t a platform that would offer every customer the same service due to the various local restrictions that apply in various nations. As he noted, the majority of funding platforms just addressed specific aspects of problems, like prime consumers problems in the US, or near-prime credits in Canada, rather than the root causes.

“There are great lenders out there, but the market is disconnected, each lender is solving the part of the puzzle, but not all the puzzle.”, stated Meided Sharon during an interview.

Therefore, there was a critical need for a consumer financing platform that would link lenders and merchants so they could provide various forms of retail credit or Buy Now Pay Later services to the public, allowing ChargeAfter to expand its loan rate from 20 to 80 percent. It was crucial to be able to assist clients from various locations while ensuring that they received the consumer financing they required. These were the driving forces for the creation of ChargeAfter, which allowed him to use the greatest features of each lender, provide customers a far higher chance of approval in BNPL, and provide retailers with the best ways to boost sales and maximize AOV (Average Order Value).

This led to the creation of ChargeAfter, the market leader in consumer financing, which has reputable lenders and allows the financing platform to provide diverse services to retailers and customers so they may obtain BNPL loans with the payment plans of their choice. As Meidad has stated, he intends to raise the number of lenders to 70 by the end of this year and is already extremely near that goal.

The entire spectrum is currently covered by ChargeAfter. Different BNPL white label services, card installments, visa installments, and non-card choices are provided by lenders. working with major financial institutions like Citizens Bank or Wells Fargo, the US leasing companies, and offering business financing to businesses. Each customer can thus choose from offers that are relevant to them.

 

Economics of ChargeAfter

 

Meidad also discussed the business’s economics and the source of its income. He compared ChargeAfter’s actions to what Visa and MasterCard accomplished decades ago, when they connected all the banks in one place and enabled the use of a single card for a variety of services.  ChargeAfter is doing the same by linking lenders with the merchants. It is charging lenders platform fees based on transaction volume in order for them to use the financing platform of ChargeAfter and maintain connections with numerous merchants across the world.

 

How does it Work

 

ChargeAfter’s financing platform is simple to use for retailers thanks to integrated systems on websites. They only need to download it and use it in their stores. Additionally, it is simple for the customers because they just need to complete the application once, and the system will match them with the best lender. The platform’s responsibility is to offer them a safe and appropriate solution to all BNPL regulations and limitations.

To accommodate the growing number of customers, the system must also be modern and functioning effectively. To be secure and up to date, the corporation invests heavily in it and tests it every month.

 

Upcoming Trends

 

The CEO also discussed future trends in the industry. According to Maided, they can predict what would happen based on the statistics they have. There are two major market trends on the horizon. First, there is an increase in loan demand. To fulfill their needs and overcome obstacles, consumers will want more credit. In the future, more consumers will seek consumer finance since BNPL white label services will be increasingly necessary for the clients as the cost of goods and services rises daily.

Second, because lenders would have stricter loan requirements, the availability of credit will be difficult. The same thing occurred during the COVID-19 pandemic when loan approval was cut in half. According to Meidad, the same scenario will occur, and certain loan organizations will either exit the market or fail to adapt to the new trends.

ChargeAfter will play a crucial role in preserving the relationship between lenders and retailers so that consumers may still choose from a choice of BNPL options for their consumer credit. However, to qualify as prime clients and receive prime offers from the financing platform, customers must maintain the highest possible credit ratings.

Meidad Sharon concluded by saying that the ChargeAfter worldwide loan platform will continue to function as a connecting network to aid customers and retailers in getting through this time.

 

Want to learn more? Reach out to us here.

Building customer trust is crucial for the success of your online store. Consumers who trust brands are far more likely to purchase. Furthermore, trusting customers are far more likely to return to make their second, third, and fourth purchases, and so on. Return customers that are loyal form one of the cornerstones of profitable online selling. They are valuable assets, and in this article, we discuss how to develop them. We showcase five ways to build consumer trust with your online store and turn once-off consumers into long-term shoppers.

1. Introduce Consumer Financing Features

Consumer financing features, or buy now pay later (BNPL) services, are integrations that enable shoppers to access loans from the websites that they shop. Instead of having to find financial aid elsewhere, consumers can use the integrated consumer lending platforms to secure financial support during the checkout process. This creates shopping efficiency and increases the likelihood of making a sale. The consumer-facing benefits of BNPL solutions build customer trust. The easy, affordable, and quick access to shopping financing empowers them, and they perceive this added value as an opportunity to connect with the brands that offer consumer financing. 

2. Improve Your Customer Service

Customer service is critical to building customer trust. A great customer service strategy will drive positive interactions with your brand community, showcasing the value to your existing consumers and those that stumble upon your online store for the first time. You should consider ways to improve all aspects of your customer service, from your time to first response to your time taken to resolve consumer problems. An assessment of these key performance indicators (KPIs) will provide you with insights to make improvements to your customer service strategy. This consistent approach to optimizing internal organization will enable you to build stronger and more trustworthy relationships with your shoppers. 

3. Highlight Your Achievements

Online stores should be proud of and showcase their achievements via their marketing channels. From social media posts to embedding Trustpilot reviews into your website pages, you can start making your most recent successes known to the public. This not only attracts new customers but showcases to your existing customers that you are consistently delivering on your brand promises. Highlighting your achievements is a great way to build customer trust and leverage the positive brand associations and perceptions that you have developed over time.

4. Take Accountability for Your Failures

In the same way that it is important to highlight your successes, you should also take accountability for your failures. There is no such thing as a perfect brand, and owning up to your mistakes is the nature of online selling. Instead of disregarding negative comments and letting uncomfortable leads from falling by the wayside, you should actively manage the negative information about your online store online. You should have a person or team of people, typically the marketing team, engaged with consumers online to answer their problems and provide support when failures occur. This transparency will win the trust of your customers.

5. Ensure You Are Always Reachable

Online stores should ensure that they are always reachable to build trust with customers. The modern consumer is searching for the most efficient services, and your store should deliver efficiency in your communications. You can install live chats or seek the aid of a call center to answer your consumers as quickly as possible. You should aim to reduce the time that it takes to respond to consumers, and deliver 24/7 communication support if you run an online store to successfully build customer trust.

Building trust with your customers is important for developing a successful online store. From introducing consumer financing to highlighting your successes and taking accountability for your failures, you can start building a sustainable and profitable brand community built on loyalty.

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Abandon cart rates are a key eCommerce metric to consider when assessing the performance of your online store. This data can give you a clearer idea of how consumers are engaging with the checkout stage of the consumer journey that your store is creating. It can share insight into what consumers are doing at the checkout stage and why they are turning away from purchases. With a better understanding of why consumers scrap their carts, you can make smarter decisions with regard to your checkout page and the consumer journey. In this article, we share the four most common reasons consumers scrap their carts and how you can recover them.

1. Unforeseen Costs at the Checkout Stage

If you are not upfront about the costs of your products and services, then consumers are likely to abandon their carts. As consumers arrive at the checkout stage, the final cost for their purchases should not exceed the expected cost as seen in the journey up to the checkout stage. For example, delivery fees should be fairly responsible and not include any complex fee structures. You should make every effort to ensure that consumers are seeing a cost somewhere in line with the perceived value of their purchases.

2. They Are First-Time Buyers

First-time buyers need to take a leap of faith for their first purchases with online stores. They may be unfamiliar with your store, a factor that reduces their trust in your service delivery. First-time buyers are difficult to attract without positive online reviews and comprehensive information about your brand, delivery services, and other factors that influence consumer trust. You should ensure that you have the necessary information and online reviews to encourage first-time buyers to make purchases on your online store.

3. The Checkout Experience is Convoluted

When consumers are ready to buy, they will arrive at your checkout page to complete the order. If the checkout page is not up to industry standards, consumers will abandon their carts. You should ensure that your checkout page is simple to use and you can improve the odds of increasing sales values by cross-selling and upselling via the checkout page. These strategies are popularly used by eCommerce stores to ensure that consumers not only purchase their carts but purchase more expensive carts.

4. Payment Options Are Limited

Different consumers shop differently and providing many payment options is the best way to satisfy the diverse spectrum of online shoppers. Payment options like Visa and Mastercard are essential, and consumer financing payments are proving popular for their ability to add additional value to consumers. The introduction of these payment options will positively impact your abandon cart rates.

How to Reduce Abandoned Cart Rates: Consumer Financing

You can reduce the rates at which consumers abandon their carts by introducing consumer financing integrations into the checkout stage of the consumer journey. Consumer financing platforms, like those offered by ChargeAfter, enable businesses to offer customers financing at the push of a button. This financing can be used to purchase their carts, facilitating a quick and simple process whereby to acquire their purchases. The ability to provide shoppers with the simplest ways to reduce pain points such as online financing is a surefire strategy to improve abandon cart rate metrics and have more consumers making purchases.

In the world of online selling, abandon cart rates are one of the most crucial marketing metrics to understand as they provide insight into your shoppers’ behaviors at your checkout page. You should understand the common reasons consumers scrap their carts and use consumer financing platforms to reduce the negative impact of this metric on your eCommerce success.

Want to learn more? Reach out to us here.