How “buy now, pay later” has helped businesses?

Buying stuff in installments has been in existence for quite some time, and it has helped customers immensely. What is “buy now, pay later?” How does it benefit the business?

1. Simple for you and your customers

The first thing to remember about buy now, pay later is that it’s a very flexible service. It’s easy for you to set up, it’s easy for your customers to use, and it’s easy for your business as well. You can afford to leave the complexities of payment behind — no more chasing down customers or worrying about missed payments.

For customers, there’s no need to worry about paying at the time of purchase or having the cash on hand for the items they want…

2. Improves customer experience

The ability to pay over time is especially useful for customers who need more time to pay for the item they’ve chosen. For instance, if you have a customer who wants to give you a deposit now and pay the balance later but doesn’t have enough money on hand to cover the entire purchase cost, they can still make their purchase with a credit card through your website or mobile app.

3. Helps in attracting new customers

Buy-now, pay-later businesses can attract more new customers than those who don’t because they can reach out to consumers who may not have had access. With this payment option, even those on tight budgets can enjoy your product or service without having to worry about making payments immediately.

If you’re looking for new sales channels, buy now, pay later installment can help open up new markets. You’ll be able to reach out to customers who might otherwise be unable to buy from you because of their credit score or lack of funds.

For example, if you’re selling luxury watches, this could be an excellent way for someone without having enough cash in hand to buy one of your products.

4. Increases average order value

Buy now, pay later sales are a great way for businesses to increase average order value. This is because buyers don’t have to worry about their credit card limit or whether the items they purchase are in stock. They can simply buy what they want when they want it.

This means shoppers are more likely to spend than they would otherwise and may even purchase additional items while browsing your store. In fact, research shows that people who use buy now, pay later services will spend more than double on their first order than those who don’t use these services.

5. Increases the conversion rate

Buy now, pay later increases your conversion rate by allowing more people to buy from you who otherwise won’t be able to do so because they don’t have a credit card or enough money on their card. It also makes it easier for people who want to buy multiple products at once but don’t want to wait until all items arrive before paying for them all together in one payment.

6. Reduces cart abandonment rate

Buyers often abandon their carts when they realize that they need to pay for their purchases immediately. Buy now, pay later solves this problem by allowing customers to make purchases without worrying about paying for them right away. This makes people more likely to complete their purchases and increases your sales overall.

7. Encourages multiple purchases

Buy now, pay later allows customers to make multiple purchases, which is great for businesses. It’s a lot easier to buy more than one product if you’re not paying immediately. You can buy a coffee machine, then add coffee pods or water filters at a later date. Or you could buy a new suit but add ties and shirts at another time.

It’s easy to forget about these additional items when you’re paying cash up front. But when you have payment flexibility, buying more items at once becomes easier because you don’t have the added pressure of paying for each item individually.

8. You can offer financing as a value added feature

You don’t have to sell anything to offer this service — it makes sense if you sell something that people want but are a bit short on cash. It doesn’t cost much to add this feature, but it gives you more options when it comes to selling products online, which can drive more sales.

Conclusion: The buy now, pay later works tremendously for the benefit of business owners.

This is an interesting concept, and it definitely has some merits. Through buy now, pay later, the consumer can feel free to shop how he or she wants. This creates a better consumer experience, leading to increased sales. For business owners, this reduces the risk of getting stuck with slow-moving inventory or having to lower prices due to excess inventory.

To know more, please connect with Payment Pilot experts today.