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As increasing consumer spending at the beginning of the year and online shopping continuing to grow across all age ranges, companies are facing more opportunities and more competition for the dollars of consumers. This means that they must find new ways to cater to the desires of consumers through offering them more options to shop on your brand or on your site. The best place to begin is the checkout process -looking at ways to make it easier for customers. essential last step of the purchase process and offer different payment options to customers that will enhance your customer's experience.
One trend that is rapidly gaining recognition in the world of online shopping includes the "Buy now as well as Pay Later" (BNPL) option at checkout. BNPL is a type of payment that allows shoppers to break the cost of their purchase into manageable installments spread throughout time, in some instances, in just a few weeks while in other cases spread over several months.
Buy now, pay later is increasing
A growing number of consumers are using pay-over-time alternatives in the event they are accessible. In 2023, online retailers experienced a dramatic rise in the sales generated by BNPL as well as the number rising 42.5 percentage in comparison to the prior year. This means that BNPL put some $16.6 billion on merchant books in the last couple of months of this year. the trend is expected to continue for Adobe anticipates that it will continue to grow through 2024.
Around 93.3 million customers are predicted to utilize BNPL in 2024 according to EMarketer in addition, American Banker reported that the BNPL market in the US could reach as much upwards of $8.3 billion by 2028. BNPL is being accepted increasingly by internet-based retailers, such as Amazon.com -- which is expected to further accelerate its expansion and make the service more appealing to those who buy online.
This makes BNPL can be a viable option for businesses need to consider when competing on a crowded online marketplace.
Buy now and then make payment later: Some things to think about
The incorporation of BNPL choices for checkouts sooner rather than later offers retailers more opportunities to attract new customers and establish the foundation for a lasting relationship.
If a store doesn't offer an BNPL option during the checkout location, it may be the ideal opportunity to add it to the menu. If a retailer does provide it, making the BNPL option on their sites, particularly when you check out or by announcing the possibility by way of advertising could help make their brands stand out and increase customer experience clients.
The more prominent the BNPL option appears on an online store's website as well as the faster they promote the option via email and social channels and social media channels, the more likely people are to be interested in knowing more -- helping the retailer to attract more buyers to their website to complete the purchase.
BNPL can allow retailers to expand their appeal towards customers who wish to purchase now however, they want to manage the flow of money with no credit. The ability to divide the cost of buying in, say four payments that are interest-free every two weeks means that buyers will be able to purchase what they want quickly. A few BNPL service providers, including Affirm offer longer-term terms, ranging from one to three months up to three years on large carts or expensive products.
Though adding another payment option on the back end of an ecommerce site could be an overwhelming task for small-scale merchants with limited time to complete this task There are options that are quick and simple that could simplify the whole process for the merchant. In this case, for instance, retail stores can often make use of pre-built integrations for ecommerce, such as those that use the payment extension called Affirm Payments. It allows that allows for the simple integration of a BNPL payment option on their checkout pages.
Advantages of offering Buy Now and pay later for your Woo store
What advantages do the BNPL integration offer? First, an integration will simplify the purchasing process in order to cater to the ever-growing number of customers who like to pay through time. Also, keeping your customers in your store and guiding them toward checkout is crucial particularly for young shoppers who have become accustomed to online shopping. In fact, a study by the National Retail Federation reports that over 50% (46 percent) of Gen Z respondents consider a simple checkout process important to shopping.
One of the most important aspects to consider for integration is how it will impact the customer. Customers must be is able to view their payment options as well as go through the approval process without needing navigate to an additional site. By integrating with a pre-built system, merchants can make the process as direct and painless possible for customers to ensure that the decision doesn't get impeding making a sale.
A seamless checkout experience can help in reducing the abandonment rate of carts. The most recent Baymard Institute metastudy of 49 research studies found that cart abandonment rate still hovers around 70 percent which is not significantly different over the past decade. Among the top reasons that carts get abandoned is a checkout procedure that was either long or difficult (22 percent of the time) and also the site didn't offer sufficient payment options (responsible for 13% to 13% of abandonments of carts). Thanks to the highly integrated BNPL solution, merchants can solve both customers' concerns in one go.
What is the best way to select a purchase today, pay later service
The choice of an BNPL supplier that matches your needs as a business as well as your customer's requirements is crucial to find the ideal combination. Affirm, for instance, Affirm provides custom payment solutions for retailers - they offer both short- and long-term solutions, including zero-interest options. Offering payment plans that meet the needs of consumers and their price that merchants are able to increase the accessibility for customers and sell against rivals.
One of the distinctive features offered by Affirm is the Adaptive Checkout technology, which offers dynamically the most suitable ways to pay your customers dependent on each product's cost and price of your cart. Individualization is a key feature of the game online. Affirm allows you to customize the length of time as well as the rate of interest for each purchase, by offering a variety of ways to pay over time for customers. All within the same seamless experience.
What can you do to let the customers you have in the past and who are likely to purchase from you be aware of the BNPL choice before they make their purchase? Based on the market which you're aiming at, you may want to promote it on social media platforms. Retail Dive states that 85percent of the customers' purchase decision-making is influenced by social media. So advertising the availability of BNPL through these channels could provide you with an advantage. If you're targeting Gen Z, know that nearly 45 percent of those surveyed were able to identify TikTok as well as Instagram as their top choice that influence their buying decision.
Since summer is often a slow season for both businesses and companies is a perfect opportunity for retailers to concentrate to get BNPL operating on their website prior to when it becomes busy. Back to School rush signals that this is one of the busiest times leading up to the winter holidays. This is a time to make thoughtful decisions regarding suppliers, address any issues with technology and launch the effectiveness of a marketing campaign which announces the launch of BNPL as a new payment option that can be used at the time of checkout.
Giving the BNPL choice at checkout and publicizing it via social media can change the game for merchants looking to increase online sales and compete with the other merchants.
Do you wish to include an adjustable payment option into your current payment method? Make an application to Affirm for a start and then use the Affirm Payments extension for the option of pay-over-time when you payment.
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Payment options offered by Affirm are subject to a credit check they may not be offered everywhere in the world and are offered by lending partners that are listed in the following table: affirm.com/lenders.
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