Is Buy Now Pay Later (BNPL) The Right Fit For Your Business?
Consumer financing and credit have evolved drastically over the past couple of years, with more and more options available to choose from. Merchants are always looking for new ways to make their products more accessible and affordable for their consumers from offering loyalty points, branded store cards to on-accounts and layaways. Recently, Buy Now, Pay Later (BNPL), or Point Of Sale Financing has become a popular choice in the retail space especially among the younger demographics who are avoiding credit cards at all costs.
For these tech-savvy, younger consumers, BNPL is an appealing payment option that is not only affordable but more suited for their needs. For merchants, POS financing enables you to attract more of these customers while also increasing average order values and reducing the number of abandoned carts. While it is certainly an attractive solution to offer, it does not necessarily mean that BNPL is suitable for your business. But how do you know offering Point Of Sale financing is the right fit for your company and consumers?
These few signs below may help you answer that question. If you find yourself agreeing with the points below, then it may be time to look into offering Buy Now, Pay Later financing solutions in your store.
eCommerce Is Your Money Maker
If your business is predominantly online, BNPL is one of the best instant financing options for your consumers. It is eCommerce friendly and takes only a few minutes to apply for, which is not the case for store credit, on account, or layaway payments. Giving consumers access to instant financing generates a positive and seamless user experience that will resonate with them well into the future. With up to 85% approval rates from ChargeAfter, there is also a higher chance of your customers completing the checkout process and converting it into a sale.
In addition to higher approval rates, ChargeAfter’s technology can also be seamlessly integrated into your existing platform. ChargeAfter’s Buy Now Pay Later is compatible with Shopify, Woocommerce, and many other eCommerce platforms!
You Sell High Ticket, Long-Lasting Products
If you are an eCommerce store that sells high ticket items like electronics, mattresses, or furniture, offering BNPL financing can make all the difference when acquiring customers. Customers usually take time to decide whether or not to purchase higher-priced items, and they are more than likely going to shop for the best deal if they really need or want the item. Offering BNPL mattress financing, or financing for furniture and electronics helps to put the buying power back in their hands with more choices and less pressure financially. Instead of having to pay the total amount upfront or max out their credit cards, your customers can apply for the instant loan and pay back a pre-agreed amount over a few months.
Your Customers Are Bouncing
If you have noticed an upward trend in abandoned carts, it may be time to look into offering Point Of Sale financing. There are many reasons why customers drop off before completing the checkout process, however, one of the main factors is price. High prices can cause your customers to leave without ever coming back especially when there are no flexible payment options available in your store. There are many shoppers who don’t own credit cards and many others who simply don’t have the cash upfront. Instead of being forced to drop prices and affecting your bottom line, POS financing can help get you the sale and get the customer their goods all without having to undercut prices.
You Want To Create An Enjoyable Shopping Journey
Customer experience is everything in the retail world and in order to get more customers through your doors or portal, you need to meet their expectations. This means bumping up your website, promoting sustainability, and creating an easy checkout process. Nothing says customer service quite like instant BNPL financing. It takes minutes, does not require pages and pages of details and the response to the application is immediate. No lines at the bank, no heaps of paperwork, and fewer rejections! Plus your products become affordable for the average consumer. Point Of Sale financing from ChargeAfter caters to any shopper’s needs with flexible terms thanks to a diverse network of multi-lenders. When customers enjoy your shopping experience, they are more likely to keep coming back for more.
The Bottom Line
BNPL financing is a great option for your business if you sell high ticket items online, put customer experience top of mind, and want to have fewer abandoned carts. With Buy Now Pay Later you are able to put the buying power back into your consumer’s hands and gain more customers from the younger generations. The wider the net, the more potential to make sales!