Buy now, pay later (BNPL) has been growing in popularity among consumers in recent years, driven by the convenience and flexibility it offers consumers. BNPL plans make purchases more affordable and accessible for consumers by spreading the cost of a purchase over time.
Boost Connect offers BNPL solutions which has several features that not only make it more attractive for consumers to decide on a purchase, it also makes it a stand-out solution for merchants looking to increase sales. Feel free to get in touch with us about how Boost Connect’s Buy Now Play Later solutions can help merchants can be a business game-changer.
Here’s how implementing a BNPL option helps merchants maximise their business potential.
- Increase sales
BNPL options can boost sales as it removes the price barrier of having to pay full price upfront for a purchase, which can be a deterrent for some consumers. By giving the option to pay in instalments, BNPL allows consumers to make purchases that they may not normally be able to afford. Making it more manageable for consumers to afford an item can increase the likelihood that they will commit to a purchase. It could also lead to larger average order values for merchants as customers are more likely to make a purchase, as they are able to budget for it in a way that works for them
Additionally, BNPL can also attract new customers to merchants who offer a BNPL option, who may not have made a purchase otherwise at other merchants who don’t offer this option.
- Reduce cart abandonment
Many consumers change their mind at the last minute, when it is time to click on the “confirm order” button, as they often reconsider whether their budget can really accommodate their purchase. Some consumers may be hesitant to make a purchase with a traditional credit card or other payment method due to concerns about creditworthiness or high interest rates.
A BNPL option can help reduce cart abandonment rates, as customers may be more likely to complete their purchase if they feel they are incurring less financial burden with a more flexible payment option. To give consumers even more flexibility, Boost Connect can customise a solution to fit the customer profiles that align with a merchant’s business strategy.
- Improve cash flow
While BNPL allows customers to defer payments, merchants receive payment for their products or services from the BNPL provider, typically at the time of the sale. Additionally, BNPL providers like Boost Connect typically handle the credit risk and manage the instalment payments with the purchaser. This way, merchants are not exposed to the risk of non-payment.
This arrangement not only makes it easier on the consumer’s cashflow management, it also allows online merchants to improve their business cash flow as it allows them to have cash on hand for the goods or services sold, while reducing the need to set aside funds to cover potential bad debts.
- Increase customer loyalty
Offering a BNPL option can help differentiate a merchant’s from others. Making the purchasing process more convenient and flexible can help build customer loyalty and attract customers to return to make additional purchases. Allowing customers to pay for purchases over time also helps them better manage their cash flow, which can lead to a greater sense of financial security and satisfaction.
By creating such positive shopping experiences for consumers, BNPL can help merchants build trust with their customers and increase customer loyalty.
- Attract a younger demographic
In many markets, Boost Connect has observed that BNPL is particularly popular among younger consumers. This demographic, who could typically be less financially established, may appreciate the flexibility and affordability that BNPL offers. BNPL makes it easier for younger consumers to afford items that align with their lifestyle preferences while fitting their financial needs.Additionally, younger people are more likely to engage in e-commerce, and are more comfortable with digital payments. Thus, younger consumers who are more likely to shop online and via mobile devices would appreciate merchants who offer a seamless and mobile-friendly checkout experience with BNPL. Merchants who provide a BNPL option that aligns and of this group can attract more customers from among them.
Find the right BNPL partner for success
While BNPL is a great tool to maximise sales, there are various factors to consider in order to make BNPL work. You definitely need the right partner who can work with you on the same wavelength and has the expertise to integrate their BNPL options with your existing systems.
It’s important to research BNPL providers to determine which one aligns best with your specific business objectives and target market. Consider their reputation for key factors, such as integrating with existing systems, building-in flexibility for your business needs, ensuring data security, providing timely assistance with any issues that may arise.
Go here to check out the key features of Boost Connect’s BNPL solution that not only make it more attractive for consumers to decide on a purchase, but also makes it a stand-out solution for merchants looking to be more effective in converting their customers and increase sales.
Get in touch with us today and let us show you how we can tailor a BNPL solution to fit your exact needs and goals.
