Benefits of Using Buy Now, Pay Later in Online Stores

Technological advancement made a significant percentage of individuals embrace online shopping. On this platform, retailers have a variety of payment alternatives. Consumers are now embracing convenient payment options.

Introduction

Merchants and e-commerce have been evolving, especially after the Covid-19 pandemic. Some processes considered standard ways of running e-commerce stores are changing. The newer generations are now dictating ways of purchasing products from online stores in a way that favours them. They are doing away with the “pay at the checkout time” model to other flexible alternatives like, Buy Now Pay Later. According to some consumer research, 76%* of consumers will buy products from e-commerce when given a seamless payment plan. Another report indicates that 86%** of customers opt for the interest-free Buy Now, Pay Later. Payment in instalments in the e-commerce sector is gaining popularity, so what does it entail?

Buy Now, Pay Later (BNPL)

It is a mode of payment popularly used in e-commerce stores, where customers make purchases and pay the entire amount in instalments. Usually, a customer will be required to make the first payment at the first time of purchase. One has to clear the instalments on the agreed due date. The e-commerce store’s payment associates generally handle the risk and duty of collecting money from the clients.

Why Pay on E-commerce via the BNPL?

Here are some reasons you may consider paying for products online via instalments.

Affordability

Paying in instalments is a suitable option for traditional credit cards. BNPL offers clients an affordable opportunity to pay all the required amounts the payment provider sets. Paying in instalments doesn’t have a complex approval process for clients. Additionally, this payment alternative has no extra charges and no interest as long as the client pays the entire amount on the agreed date.

Offers convenience and flexibility

BNPL is a suitable substitute for the payment options for clients that are more concerned about paying a lot of money upfront than they would wish to. The opportunity to order goods before particular holidays instead of waiting until they can pay in full ensures prompt delivery. It reduces the possibility of forgetting to order later.

Credit card use is on the decline

Some credit cards have high-interest rates, making consumers look for other payment alternatives. Additionally, people are moving away from credit cards due to other variables, including decreasing credit limits and unappealing rewards programmes.

The bottom line

Payment in instalments is a quicker and more efficient alternative if you need to purchase a given product and don’t have the required amount. This payment option sounds easy; kindly don’t be carried away. Ensure you use it on the things that you afford. So if you decide to use BNPL, be keen on your payments. There are penalties for those who forget to clear their debts or cannot afford the acquired item. BNPL is gaining popularity; consumers and retailers are benefiting from it.

*Source : Citizens Financial Group, Inc., Rory Sheehan, 76% Of Consumers Are More Likely to Make a Purchase If a Simple and Seamless Payment Plan is Offered, November 08, 2018

**Source : Buy Now, Pay Later Statistics and User Habits, C+R RESEARCH, PUBLISHED: MAY 13, 2021