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With consumer spending on the increase towards the start of the year, and the popularity of online shopping is growing across all demographic groups businesses face increased opportunities and a greater threat to the dollars of consumers. It is imperative that they discover new methods to respond to the demands of customers in addition to offering them additional opportunities to buy on your website or through your brand. The best place to begin is to look at the checkout processlooking for opportunities to facilitate the purchase process customers to complete their purchase as well as provide the choice of payment to your customers which will improve their experience.
One trend that is rapidly growing in popularity among online purchases is"BNPL" or the "Buy Now and pay Later" (BNPL) choice at the check-out. BNPL is a different payment option that allows customers to break up the cost of their purchase in affordable installments that are divided across time-in some instances over just a couple of weeks. However, in other instances the payment is spread out over many months.
Buy now and pay later will be more common.
Many consumers are taking advantage of the pay-over-time option when they are available. In 2023, merchants via the web saw a dramatic rise in the number of purchases which were made through BNPL, with the number rising 42.5 percent from year to year. The end result was that BNPL put about $16.6 billion in transactions onto book of merchants in the last two months of the year and this trend Adobe expects to continue until 2024.
Around 93.3 million customers will be using BNPL in 2024 according to EMarketer in addition, American Banker reported that the BNPL market in the US may be as high as $8.3 billion in 2028. BNPL is getting more embraced by online retailers such as Amazon.com that are growing faster and making it more popular with consumers who shop on the internet.
This makes BNPL as an option that businesses shouldn't ignore as they compete in a crowded online market.
Offer buy now and pay later: Some things to consider
The addition of BNPL alternatives at checkout earlier instead of later gives retailers more chances to attract new customers as well as establish a long-term partnership.
Merchants who don't have the BNPL choice at checkout It could be an best time to add it to their menu. If they are able to offer it, they can do so by making the BNPL option in prominent display on their website, particularly during checkout or by announcing the availability via marketing and advertising, it could further help their brand stand out and increase customer experiences for customers.
The more noticeable the BNPL option is displayed on the web site of a retailer and the earlier they market the possibility via email as well as social media channels as well as social networks, the more likely they are for customers to desire to learn more -- helping the merchant bring shoppers to their website to complete the sale.
BNPL allows merchants to increase the reach of their services to people who are looking to purchase things now but wish to manage their cash flow without credit. Through the provision of splitting the total price of an item into similar, four installments which are zero interest every two weeks, buyers are able to purchase what they want in a short time. A few BNPL firms, such as Affirm and Affirm, offer longer-term options that range from several months, up to three years for carts that have large dimensions as well as costly things.
Though adding another payment method to the website's backend might be daunting for small businesses already strapped for time, there are solutions that can be quick and easy installation that will simplify all the steps for retailers. In this instance you are usually able to utilize built-in eCommerce integrations, such as the AffirmPayments extension easy integration of the BNPL option to their current checkout pages.
Benefits of allowing you to buy today, purchase later, and pay for your Woo store
What benefits is the BNPL integration provide? One benefit is that an integration can streamline the purchasing process for the ever-growing number of people who prefer to make payments over the course of. In addition, keeping customers on your site and moving toward the checkout procedure is essential, especially for youngsters who are growing to be accustomed to online shopping. In fact, it's stated by the National Retail Federation reports that nearly half (46 percent) of Gen Z respondents consider a seamless checkout process critical for their shopping experience.
One of the most important things to consider when you are implementing the integration is how it'll impact the customer. It's crucial that the consumer is able to view their options for payment as well as complete the process of approval without needing to navigate to a different website. By using an integrated system, merchants will be able to make this process as simple and painless as possible to the customer, so they don't stand out of selling.
A seamless checkout experience can help in reducing the abandonment rate of carts. A recent Baymard Institute metastudy of 49 research papers found that cart abandonment rate remains about 70 percent. However, it isn't significantly different in the last decade. Most people abandon their carts: a checkout procedure that was either too long or complicated (22 percentage of times) or the website didn't offer sufficient choices for payment (responsible for 13% of cart abandonments). With the highly-integrated BNPL solution, merchants can tackle both these issues with their customers simultaneously.
What is the most cost-effective purchase now and payment later service
Picking a BNPL company that best meets your needs as a business and with customer requirements is a crucial aspect in determining the best solution. In this case, Affirm provides custom payment choices for merchants. They can include both long- and short-term options as well as zero-interest options. With payments that correspond with consumers' needs and prices, retailers might be able to offer more affordable prices to clients and even win customers advantage over competitors.
Another unique feature of Affirm is their Adaptive Checkout technology, which dynamically offers the most relevant alternatives for payments to customers based on each item's cost and total cost of the purchase. The term "personalization" is a key part of online gaming, Affirm customizes the length of the transaction and the APR of each purchase, and provides a variety of appropriate options for paying over time for customers, with an intuitive user interface.
How can you make sure that your customers, present and future, know about the BNPL decision before making their purchase? If you're targeting a specific audience, you might want to promote it on social media sites. Retail Dive says that 85 percent of people purchase decisions are affected through social media. Therefore, advertising the existence of BNPL on these sites will give you an advantage. In the event that you're aiming at Gen Z be aware that 45percent of those polled cited TikTok and Instagram as the top app for influencing their purchasing choices.
In the summer, which is often an unproductive time for businesses and business, it's a good time for businesses to concentrate on getting BNPL functional on their sites in advance of back to school. Back to School rush signals the start of the hectic time leading up to the holiday season. The merchants are able to be mindful of merchants, fix any technical issues as well as launch the effectiveness of their marketing campaigns that announces the addition to BNPL as a new payment method to be accepted at the point of purchase.
The BNPL option when you checkout and promoting it via social media can change the game for retailers looking to attract greater online sales and outdo other retailers.
Are you ready to include the flexibility of payment options in your check-out process? Apply to Affirm to begin and then make use of the Affirm Payments extension for pay-over-time through your payment process.
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Payment options offered through Affirm is subject to a test of eligibility and might not be available everywhere, and are provided through these lending partners: affirm.com/lenders.
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