How you can increase your sales with “Buy now, pay later”
As a result of the corona crisis, online retail has experienced a boom: With it, the need for modern and flexible payment options has also increased. As easy as it is to fill up the virtual shopping cart with all sorts of desires without obligation, the purchase is rejected again quickly if a surprisingly high payment amount is waiting at check-out. The financial limitations associated with the crisis forced many consumers to reconsider their liquidity. Flexible payment options therefore give retailers a clear competitive advantage: For years, purchase on account has remained the favorite payment method of German online customers. As a result of the corona pandemic, the use of BNPL options once again rose significantly.
Liquidity without bureaucratic effort
For customers, BNPL works in a similar way to the well-known purchase on account: They receive a service and only have to pay for it later. In the past, this process was often associated with payment defaults, complex reminders, bureaucracy and unpredictable liquidity. By using external payment service providers, companies can outsource this problem and still offer their customers the flexibility and convenience of well-known “pay later” options.
According to a study by RFI Global, consumers particularly appreciate four key features of BNPL options:
The benefits for end customers are obvious: Short-term liquidity bottlenecks (for example until the next paycheck) can be bridged without bureaucratic effort, such as extensive credit checks. In online retail in particular, offering purchase options on account promotes trust and thus strengthens customer loyalty. Brick-and-mortar retailers have now recognized this potential and are developing structures to integrate BNPL solutions here as well.
More revenue through convenience and trust
The modern new edition of classic purchase on account creates more flexibility and convenience for customers, who complete online purchases up to 20% more often by offering their favorite payment method, while also buying even more and spending larger amounts of money. In a survey, 48% of all customers said that they could spend 10-20% more money by using BNPL solutions than using credit cards, for example.
In addition, one aspect in particular is likely to be of particular importance for companies: By offering the modern payment method BNPL, they can also attract the interest of possibly underrepresented customer groups, such as Generation Z and Y. Young customers in particular prefer BNPL options — a finding that can significantly help companies acquire new customers. Overall, companies that offer “pay later” options are rated as more reputable and trustworthy, which in turn promotes customer loyalty and creates purchase incentives. Companies that integrate BNPL functions into their product portfolio stand out from the competition and can thus convince customers of themselves.
The payment method of the digital future — even in automotive retail
Since BNPL has already established itself as the modern successor to traditional purchase on account in online business, the payment trend is also becoming increasingly popular in brick-and-mortar retail. Of course, the automotive trade also wants to increasingly benefit from the popular payment method: The pay.de team has recognized this and with their new BNPL product.”bezahl.de invoice purchase“developed the pioneer for the German automotive sector. As an experienced payment service provider, we can also support your company on its way to the digital future.
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sources:
- https://www.grandviewresearch.com/industry-analysis/buy-now-pay-later-market-report
- https://insights.mgm-tp.com/de/kauf-auf-rechnung-ist-die-beliebteste-zahlungsmethode-der-deutschen/
- https://finanz-szene.de/payments/warum-buy-now-pay-later-auch-banken-grosse-chancen-bietet/
- https://fashionunited.de/nachrichten/business/wie-sie-mit-buy-now-pay-later-ihren-umsatz-beim-onlineverkauf-von-mode-steigern-koennen/2022052746744
