Buy Now Pay Later: A Step Towards Making Online Shopping More Customer Friendly

The ecommerce industry is witnessing its brightest period today. It is flourishing today, with every business investing in an ecommerce platform to attract online shoppers. But this rise in the number of ecommerce platforms has also raised the competition.

To succeed in a highly competitive market, it is crucial to ensure that every customer feels valued and that your platform meets their needs.

One of the best ways ecommerce platforms ensure that more customers come to their platforms and shop with excellent satisfaction is by providing them with a new option to make purchases. I am talking about the prevalent Buy Now Pay Later payment facility recommended by the leaders in the ecommerce industry. The top ecommerce development companies are increasingly adopting this feature.

Buy Now Pay Later is one of this decade’s most talked about and highly efficient schemes. It allows customers to pay for their purchases conveniently after a specific period. The period can range between 15 days, a month, a year, or more.

In this post, we will talk about the Buy Now Pay Later policy in ecommerce platforms. We’ll try to understand how integrating this framework into ecommerce development will benefit the industry and the customers. So, let’s move forward by getting an overview of the Buy Now Pay Later scheme for ecommerce.

A Brief Overview of the Buy Now Pay Later Scheme

It is pretty rare for an online shopper not to be aware of the Buy Now Pay Later scheme available as a standard means of making payments on all the leading ecommerce platforms. This payment facility is not just limited to eCommerce platforms; it is prevalent in online food ordering platforms and many other platforms too.

This payment facility is sponsored by a financial institution, a bank, NBFC, or a fintech. The facility allows customers to purchase things from online platforms without paying instantly. They can pay the sum based on their preferred pay cycle in 7 days, a month, a year, or more.

The Buy Now Pay Later facility holds a lot of benefits not just for customers but also for eCommerce industries. Let’s discuss the benefits in more detail.

Why Should You Integrate BNPL Into Your Ecommerce Development Project?

In this heavily globalized world, the ecommerce industry is thriving like no one else, but at the same time, the competition in the sector is intensifying. Numerous ecommerce companies and platforms are operating worldwide, and to compete with them, your platform needs to offer something unique to the customers.

The Buy Now Pay Later facility might be the fitting addition to boost the user experience of your ecommerce platform. Let’s discuss some of the key benefits of BNPL to ecommerce businesses.

# Better User Experience

If a customer can purchase from your eCommerce platform without any hassle, even when they lack funds, they will indeed have a good shopping experience. These days, every leading ecommerce platform is offering a Buy Now Pay Later service to ensure customers stay on the platform.

To ensure that your new ecommerce platform stands on par with the other competing platforms, it is vital to take note of everything they are doing right. One such thing is to integrate Buy Now Pay Later in your ecommerce platform, a trending tool found in every major platform these days.

# Lesser Cart Abandonment

Cart abandonment is one of the most serious concerns of an ecommerce business. Reducing cart abandonment always remains one of the highest priorities for every ecommerce business. People often add things to the cart for the future, thinking they will buy them once they have sufficient funds.

There can be many reasons behind cart abandonment, such as the lengthy and mind-boggling checkout process, higher shipping costs, and longer delivery times. But one of the leading and most likely reasons is insufficient funds to purchase the goods in the cart.

At such a time, the Buy Now Pay Later payment facility can be a much-needed tool for customers and businesses to convert cart items into actual orders.

# Higher Sales

Buy Now Pay Later can significantly help your business garner higher sales not only by reducing the instances of cart abandonment but also by seeming as a viable option to customers for purchasing goods even when they lack funds. There are people, including you and me, who want to purchase a lot of things, but with restricted money, we choose to buy only the most important things.

But with a payment facility like Buy Now Pay Later, we can purchase the things we wish to without making high upfront payments in easy installments. Thus, customers will be compelled to buy the things they need or want to purchase without having to compromise and reduce the cart size. This is how integrating the Buy Now Pay Later facility in ecommerce development can help you boost sales.

# Higher Profits

Buy Now Pay Later helps ecommerce businesses boost sales, as discussed in the point discussed above. And it’s imminent that higher sales will directly translate into higher profits for ecommerce businesses. Hence, by integrating Buy Now Pay Later, ecommerce businesses can earn better profit margins.

# Better Scope of Scalability

For a business to earn more profits and scale from its ranks and value, it must earn customer trust and support and achieve higher sales. Including the Buy Now Pay Later payment option in your ecommerce platform can help you accomplish all of the mentioned things to help your business scale and achieve new heights.

The Buy Now Pay Later scheme ensures that no customer leaves their cart abandoned due to a lack of funds by giving them a more accessible option to pay in installments. This type of service further strengthens customer trust in the platform. In the same way, as discussed, the payment option also helps boost sales. Thus, Buy Now Pay Later satisfies all metrics that can help your business scale.

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Key Benefits of Buy Now Pay Later Services for Customers

We discussed some significant benefits of Buy Now Pay Later for businesses now; let’s learn some benefits the scheme offers customers.

# Improves Purchasing Power

Buy Now Pay Later helps customers purchase things they want conveniently without worrying about sufficient funds. Customers can buy things that are out of their budget and lack instant funds using the BNPL payment option. This is how, by allowing customers to purchase items that might seem out of budget, the Buy Now Pay Later option improves the purchasing power.

# Easy to Get Refunds

Traditionally, when making a purchase, we used to pay either by online modes such as credit cards/debit cards or opt for cash on delivery. When canceling or returning a purchase, getting refunds usually takes a significant amount of time. But by making payments with the Buy Now Pay Later mode, you can be assured of getting instant refunds.

Compared to other modes of payments, the real money deduction doesn’t take place in the Buy Now Pay Later way, and hence, it takes little time to get refunds. Therefore, with Buy Now Pay Later, you can continue to shop without worrying about your real money refunds.

# Lower Fees and Interest on Purchases

Most of the time, when we make purchases using a credit card, we pay additional fees and hefty interest rates. But when you make payments using the Buy Now Pay Later options, you might not have to pay any fee or, in some cases, pay negligible fees. Also, the interest rate one has to pay is comparatively lower.

# Lenient Screening Process

Usually, credit card approvals follow a strict protocol where they carry out a thorough check of your credit history. In case of any irregularities in past loan payments, your application might get rejected. However, the Buy Now Pay Later payment option comparatively has a lenient approval process, and your credit score and history carry little weight in your screening and approval process.

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Top Buy Now Pay Later Service Providers

To Conclude

Buy Now Pay Later is a robust payment method offered by almost all the leading ecommerce platforms worldwide. It has emerged as a revolutionary payment method whose impact is not limited to making convenient payments but goes beyond that.

The Buy Now Pay Later scheme is not just benefiting ecommerce businesses but also the customers. It helps improve the customer purchasing power, thereby boosting sales of the respective ecommerce business.

We discussed many benefits of the Buy Now Pay Later scheme for companies and customers. Looking at all the benefits of the BNPL payment system, I recommend that ecommerce businesses invest in it for a better customer experience.