Business Advantages of Offering Buy Now Pay Later Options to Customers
Among consumers, the appeal of BNPL plans continues to grow as more and more companies choose to offer these types of purchase options. This increasing demand means that BNPL options are rapidly becoming major competitive advantages for many businesses. The benefits don’t end there, however. Companies are also leveraging BNPL payments as a marketing tactic, presenting these options to customers at earlier stages in the sales cycle to increase the incentive to purchase. While some customers may be apprehensive about committing to a purchase of several hundred dollars at the time, a BNPL option makes things far more appealing as it suddenly doesn’t have the same immediate financial impact.
Offering BNPL payments alongside a diverse range of payment methods works to the advantage of the business by appealing to a larger customer base and attracting new customers. Furthermore, those new customers are more likely to have a higher average order value as instalment plans make it easier to get more products in a single purchase and spread the cost out over a more manageable period of time. This is particularly relevant for premium brands, as price-conscious consumers can be more effectively enticed with low payment instalments.
Customers who prefer the option to pay for products and services using a BNPL plan also tend to have greater loyalty to businesses who offer this as an option. In general, customers prefer to shop at businesses that are accommodating to their needs and wants, and so BNPL can increase repeat purchase frequency and strengthen customer loyalty.
Accepting BNPL Payments at Your Business
There are different ways that businesses can process payments under buy-now-pay-later plans. Businesses can choose to set the payment terms themselves and take on the responsibility of managing the recurring payments directly with the customer. While this approach offers the greatest level of control over the terms of the agreement and the timing of the payments, it also carries the greatest risk to the business. Because of this, many companies look to financing partners to help mitigate the risks and simplify the approval process for customers.
The simplest way to enable buy-now-pay-later payment processing is to leverage a third-party financing company with apps that can be integrated directly into your business’ POS system. While there will be pros and cons with each in terms of fee structures, approval process, and flexibility in program setup, they can all be enabled for both online and in-store purchases. Whether your business operates entirely online with an ecommerce platform, in physical retail locations, or uses a blend of both, BNPL can be offered to customers in all of these instances.
Configuring your POS solution or e-commerce payment processing system to handle BNPL payments will need to involve your merchant services provider to ensure proper integration and setup. Older point-of-sale systems may not have the capability to have new apps added on to enhance their functionality, so it’s important to get professional guidance from your trusted payment processing experts. Modern app-enabled payment processing systems, like those from MONEXgroup, can be set up to accept BNPL payments quickly and easily. Customers will then be able to apply for BNPL plans directly at the time of checkout, with rapid approval processing and no long waits.
If you’re not sure if your existing POS solution can be upgraded with buy-now-pay-later apps, contact the team here at MONEXgroup today for a no-obligation consultation and to get a free quote on how your business can start accepting BNPL payments. We offer a wide range of powerful point-of-sale solutions for in-store retail applications, online e-commerce platforms, mobile payment processing, and unattended payments. Our clients receive dedicated customer service and support, along with expert technical assistance to help answer any questions and provide smooth and easy integration with BNPL providers. Take advantage of the many benefits with MONEXgroup has to offer; contact us today!