Industries That Benefit From Offering Buy Now Pay Later Consumer Financing
It’s no secret that the Point Of Sale financing, or otherwise known ad Buy Now Pay Later (BNPL) space is becoming more popular and relevant for the shoppers of today. It is a financing option customers have come to expect from retailers when checking out. Paying for your purchase in smaller more affordable monthly payments, who would turn that offer down?!
This type of consumer financing has opened a new door of opportunity for retailers and leveled the playing field for consumers who don’t have access to credit cards or prefer not to have one at all. It feeds into the instant gratification consumers are looking for because let’s face it, waiting till payday to get those new designer heels is an anti-climatic experience no customer wants to face.
Sure, there are some stores that won’t reap many benefits from BNPL options, like small convenience stores, simply due to the fact that bread or milk is not an impulse purchase. However, there are many industries that do benefit from offering their customers BNPL financing options.
If you are thinking about implementing consumer finance for your shoppers, here are just a few of the industries that are reaping the rewards of the BNPL boom.
Sustainable Products And Fashion
Sustainable items are high in demand and rightfully so. The world is taking conscious measures to lower its carbon footprint and make more sustainable decisions when it comes to its purchases. Unfortunately, these goods don’t come cheap and it is not viable for retailers to mark down their price points considering how much more time and labor goes into sourcing and manufacturing these goods. Point of Sale financing helps you keep the price fair for both parties and also makes it more accessible for customers especially with trending products like clothing, fitness accessories, and beauty.
While travel has taken a hit due to the current pandemic, a lot of shoppers living in states with more relaxed lockdown rules are still looking to go on vacation to destinations that allow them in. The cost of accommodation, travel, food and extra amenities like spa days, boat trips, and tours add up. Usually, travelers put these expenses on their credit cards and land up paying off the vacation many months or years after it has ended at a much higher cost due to the interest. Buy Now Pay Later travel financing offers your customers a more affordable way to jet set without mounting interest rates if paid back on time monthly.
Unfortunately, our devices are not indestructible. Accidents happen and it is not a cheap exercise to replace them. Outdated technology is also costly to upgrade. And the truth is that only a fraction of your customers have the extra cash lying around to buy these goods upfront. Many people are reluctant to swipe their credit cards for these costly purchases because it not only increases their credit utilization, leaving them with a very low available balance for other emergencies that may arise, but it also lands up costing more once the APR’s, interest, and fees are factored in. With electronic financing options like BNPL, your customers get to choose the terms and conditions that best suit their pockets. Why let your customers max out their credit balances when you can offer them instant financing that is transparent and gives them more bang for their buck with flexible terms to choose from.
Much like electronics, furnishing a new house or replacing a mattress is an expense most can’t afford to pay for right then and there. Layby options are also not the ideal solution when it comes to furniture financing. Customers don’t want to pay off a couch they can’t enjoy until the final payment is made. It is a far better shopping experience for the customer when they get to buy the couch or mattress they have been looking for without having to pay up the full amount upfront or wait a few more months until they can go pick up the paid in full goods. BNPL furniture financing is the way forward. Customers can purchase the products they want and take them home the same day without worrying about settling the full cost right then and there.
These are just a few of the many industries that benefit from BNPL pay later. When all is said and done, it is the final sale that matters. When customers are comfortable and feel confident in your financing options, they will not only complete the transaction but will be more likely to return to your business – a business that understands the financial needs of the modern-day shopper.