(Untitled)
With consumers spending on the increasing at the beginning of the year, as well as online shopping continuing to expand across all age groups Merchants are facing both greater opportunities and competition to consumers' dollars. That means looking for new ways to cater to the demands of customers by giving them more reasons to shop the brand or website you have created. One of the best places to start is the checkout process -looking for opportunities to simplify this crucial last step of the sale, and also provide the option of payment to your customers that will enhance their customer experience.
One trend that has quickly gained popularity in shopping online includes the "Buy Now, pay Later" (BNPL) alternative when you checkout. BNPL is a different payment method that allows shoppers to break up the total amount of their purchase in low-cost installments which are spread out over time -sometimes over a few weeks, while in others, it's spread over several months.
Buy now, pay later is gaining popularity
A growing number of consumers are taking advantage of pay-over-time options whenever they're readily available. In 2023, merchants on the internet witnessed a substantial growth in sales made through BNPL which saw volumes up 42.5 percent over the previous year. In the end, BNPL put some $16.6 billion in sales onto merchant books over the course of the final couple of months of the year alone which is a trend Adobe anticipates will last until 2024.
Roughly 93.3 million people are expected to use BNPL by 2024, according to EMarketer and American Banker reported that the BNPL market in the US may reach as high as $8.3 billion by 2028. BNPL is also being used increasing by the online retail giants like Amazon.com -- further accelerating the growth of the market and making the option far more popular with consumers who buy on the internet.
This makes BNPL an option that businesses can't ignore as they compete in a crowded online market.
Offer buy now and make payment later: Some things to take into consideration
The addition of BNPL options at checkout sooner instead of later provides retailers more opportunities to attract new customers and build a long-term connection.
If a retailer doesn't provide an BNPL option at checkout, this could be the ideal opportunity to introduce one into the list of options. For merchants who do offer it by adding the BNPL option prominently displayed on their websites, specifically when you check out, or promoting the availability of the option through advertising may help further distinguish their brand and improve customer experience customers.
The more prominent the BNPL option is on an online store's website and the faster they promote the feature via emails and on social networks and social media, the more likely they are to want to know more, which can help the merchant bring shoppers to their site to close the transaction.
BNPL can help merchants expand the appeal of their business to those who want to buy today, but also want to control their cash flow without using credit. With the ability to split the total cost of a purchase into say, four interest-free payments each two weeks, buyers are able to purchase what they want without delay. Certain BNPL providers, such as Affirm, also offer longer time options that span several months to up to three years for large carts as well as expensive items.
When adding a new payment option on the backend of an online store may seem daunting for smaller merchants already pressed for time However, there are alternatives readily available for quick and straightforward application that could simplify all the steps for both the seller and merchant. For example, merchants can often benefit from pre-built ecommerce integrations, for instance the Affirm Payments extension easy integration of an BNPL payment option to their existing checkout page.
Benefits of offering purchase now and pay later your Woo store
What benefit do a BNPL integration provide? For one, using an integration will streamline the buying process for the growing variety of shoppers who would prefer to pay over the course of time. Making sure that customers are on your website and moving them towards the checkout process is essential, especially for younger shoppers who grew up using internet-based shopping. Actually, it is reported by the National Retail Federation reports that nearly 50% (46%) of Gen Z respondents consider a smooth checkout process essential for their buying experience.
One of the most important aspects to consider for integration is how it will affect the shopper. It's crucial that the buyer has the ability to see their payment options as well as go through the process of approval without being required to navigate to a separate site. By using an integrated system, retailers ensure that the transaction is as easy and easy as they can for customers, ensuring that they don't stand out of the sale.
A seamless checkout experience can also help reduce cart abandonment. An earlier Baymard Institute metastudy of 49 research reports revealed that the cart abandonment rate is still around 70 percent which has not changed significantly over the past decade. One of the main reasons that carts are abandoned is a checkout process that was too difficult or lengthy (22 percent of the time) and the site was not offering enough payment options (responsible to 13% abandonments). By integrating a tight BNPL solution, retailers can address both of those customers' concerns in one go.
What is the best way to select a pay now, pay later provider
Picking the BNPL provider that aligns with your business needs and customer expectations is an important consideration in determining the best fit. Affirm, for instance, Affirm provides custom payment options for merchantsthey can offer short- to long-term and the option of 0% APR. By offering payment options that align with customer needs and typical prices, retailers are able to increase the affordability of consumers and even make a sale against the competition.
Another unique feature of Affirm is the Adaptive Checkout technology, which dynamically offers the most relevant choices for payment to your customers based on each item's cost and cart value. The term "personalization" is a part of the online game Affirm can tailor the duration as well as the rate of interest for every purchase -- delivering several appropriate options for paying over time to customers, all within an easy-to-use experience.
What can you do to let your current and potential customers inform them about the BNPL choice prior to checkout? Based on the market you are targeting You may wish to promote it on the social media channels. Retail Dive states that 85percent of consumers' purchasing decisions are influenced by social media, so advertising the presence of BNPL on the platforms can be an advantage. And if you're trying to reach Gen Z and you're interested in their buying habits, remember that 45% of those surveyed have cited TikTok and Instagram as their top social media platforms that influence their buying choices.
As summer can be a slow period for business and businesses, it's a great time for merchants to focus on bringing BNPL operational on their websites, ahead of the Back to School rush signals that the busiest months leading up to the winter holidays. It gives them the opportunity to think carefully concerning vendors, eliminate the technical glitches, and ramp up an effective marketing campaign that announces the launch of BNPL as a new payment method that is available during check-out.
The availability of the BNPL option when you checkout and announcing it on social media could be a game changer for merchants looking to capture more online spend--and outplay other merchants.
Ready to add flexible payments to your online checkout? Apply for Affirm to get started using the Affirm Payments extension for pay-over-time through the checkout process.
--
*Payment options through Affirm are subject to an eligibility check and may not be accessible all over the world, and are offered by the lending partners listed below: affirm.com/lenders.