Market leaders in buy now, pay later mobile apps such as Klarna demonstrates that you can help your clients retain a good credit score without postponing their purchases. That only means one thing for your business: more sales! What a world we live in-a customer can immediately get goods (or services), pay at an affordable rate, and retain a good credit score? Attract New CustomersĮveryone who does not want to overburden facilities such as credit cards is jumping on the bandwagon. Both groups are populous-you are in for a treat. 44% of both groups (Gen Z and millennials) affirmed that they chose BNPL over other credit options due to the flexibility of the former. Most of your customers will be from Gen Z and millennials once you introduce BNPL options in your app. And, debt collection is not a worry there are countless methods to guarantee that customers will pay their installments in good time. For instance, in the case of pandemics that cause lockdowns, you can maintain high sales by offering customers even more flexible BNPL options. What is better in e-commerce than increased checkouts (customers no longer blame abandoned carts on a limited budget)? Your business acquires superpowers to survive through crises. The arrangement is brilliant, and you reduce the time taken to convert your stock to sales, and customers are happier. Your customers can now afford more items by postponing payments to the periodic installments you will require. Better still, BNPL ensures that all the money a customer spends is on specific items (needs). The absence of interest fees is attractive-it is fancy, since most of the installments are used to pay for the item. BNPL is indeed better than traditional credit in several ways. The number of credit card transactions reduced by 31% between January 2020 and the start of 2021. Overall, there is a shift from traditional credit arrangements to current payment methods such as buy now, pay later. Advantages of Buy Now, Pay Later Ecommerce Apps It is now possible to pay for Domino's Pizza using Bitcoin. The evolution of the global financial system has made it possible to use cryptocurrency. Many acceptable payment options range from local mobile money to international wire transfers. In the era of interconnecting systems, BNPL in e-commerce has never been more convenient. Everybody wins! Now, your customers can check out with all the items they load to the cart-and your business makes more. The company receives compensation above the buying price for waiting. Therefore, the customer gets to pay for a slightly higher amount but within an extended period while still enjoying the goods. Generally, BNPL is based on the need to save the customer from financial burden and compensate the business for collecting the money later. In the case of assets such as homes and business machinery, more time is accorded, and interest is charged. Typically, the time taken to clear the payment for the item is determined by the value of the good and the customer's income. The balance is cleared in installments for a specified period.īNPL arrangements are varied to include options such as a one-month payment period. In buy now, pay later, a customer deposits a predetermined amount of money.
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