Online shopping has gone through a paradigm shift in the past few years as far as the mode of payments is concerned. Right from the no-cost EMI options to payment at the time of delivery, e-commerce websites have taken all the possible measures to make the life of a customer as easy as possible. And what do the retailers get in return? An increase in traffic and better conversions are just the tip of the iceberg when it comes to reaping benefits from providing better payments solution to the customers. Buy now pay later is a new addition to the list of payment solutions being provided to the customers.
Customers are more than happy to choose the buy now pay later option at the time of check out. They can later pay through a POS device or through making an online payment. This helps customers in getting a buffer time in which they can decide whether they want to keep the product that they have ordered.
What is Buy Now Pay Later?
The name is self-explanatory of its functionality. This is where the retailers let the customers take the products home or get them delivered without paying anything at the time of purchase. The customers can then pay for the product later in installments or one go.
It gives a great opportunity to the customer to use the product before even paying for it completely. Hence, you don’t need to first save for the product for months and then buy it. You can just take the product home and make the payment later. The reducing POS charges for credit card and faster POS credit card processing has made this very easy to collect payments at a later stage.
Why Buy Now Pay Later is the Best Option to Grow Your Business
1. Increase in Sales
Allowing customers to delay their payments and spread it in form of installments will make them more likely to buy your product. Who does not like a financial incentive? Consumerism in India has been on the rise and people today want to own as many products as they can. When you remove the constraint of paying the entire money at the time of purchase, it only incentivizes them to buy more products.
Hence, your sales figures can undergo a substantial change if you implement the buy now pay later option on your e-commerce website. This will also, increase the rate of conversions as there is more probability of customers checking out from the payments page as they don’t have to pay anything then.
2. Bring New Customers
This has been a tried and tested strategy and many e-commerce stores have increased the number of new visits on their website by adding the option of buy now pay later. Having this option on your website will also increase your popularity as a customer-friendly brand and more customers are going to try your website at least once. The option to pay later through a POS device is very attractive given the lower POS charges for credit cards.
3. Build Trust
The biggest problem with online products was the unavailability of an option to try the products before the customers can pay for them. This problem can be comprehensibly solved using the buy now pay later option. You are apparently giving the customers the required time to try the products first and then pay later. This increases the trust in your brand as it shows you are not shying away from letting customers try your products.
Also, customers do like a brand that goes that extra mile to make their life easier. Option to pay through a POS device later is attractive and you will gain more loyal customers through this endeavor.
4. Decrease Cart Abandonment
According to research by Baymard Institute, Neil Patel, around 6% of cart abandonments are caused by a lack of payment options. Adding an option to buy now pay later, may help in decreasing the rate of cart abandonment. The fast POS credit card processing will help you in retrieving these payments at a later stage.
You will have to try some innovative steps to take your eCommerce website to the next level and adding an option to pay later is the right step towards it.