Learn what is buy now pay later business model, the implications of implementing it and 6 reasons to add buy now, pay later options to any ecommerce website.
Should You Add Buy Now, Pay Later Options to Your Ecommerce Site?
The name says it all. “Buy now, pay later” literally lets consumers buy a product and have it delivered while delaying payment until a later date.
This option is very similar to the old-school layaway method, in which stores let consumers reserve an item while paying it off in installments. Once all payments were made, they’d then be able to take the item home.
Buy Now Pay Later
Buy now, pay later offers an even more consumer-friendly alternative to layaways. There’s no need to wait to access the item until it’s paid off in full – consumers only have to wait for their items for as long as they take to reach their doorsteps.
You’ve probably seen buy now, pay later payment options at checkouts in many places you shop. Mattress company Leesa partners with Affirm. Anthropologie partners with Klarna. Sezzle partners with Bodega.
Unlike layaways, consumers don’t necessarily use buy now, pay later to fund expensive purchases. They use the payment method to buy all kinds of things, from everyday needs like clothing and homeware to big-ticket items like fitness equipment.
Buy Now Pay Later Apps Peloton
While there are several options for buying now and paying later, they all broadly offer the same thing. The consumer gets to make repayments over several installments (typically between two and four) or in full within 14 to 30 days. Failing to pay will usually result in a fee, but not always.
One of the reasons buy now, pay later solutions are proving so popular is because they offer consumers an easier way to access credit. Unlike credit cards, which require users to hand over a lot of information and pass a rigorous credit check, buy now, pay later providers only ask for a consumer’s name, email address, date of birth, and billing address.
The solutions also mirror the purchasing habits of young consumers who are more likely to buy a selection of items, try them out at home, and then return the ones they don’t want. Returns are often more manageable and less stressful using a buy now, pay later solution since consumers don’t pay for the products in the first place.
Why You should Add Buy Now, Pay Later Payment Option?
Here are the 6 reasons to add buy now, pay later options to your ecommerce website:
1) Potential Sales Increases with Buy Now, Pay Later.
2) Buy Now, Pay Later May Entice New Customers.
3) Buy Now, Pay Later Could Build Trust.
4) You May Decrease Cart Abandonment with Buy Now, Pay Later.
5) Your Competitors May Already Use Buy Now, Pay Later.
6) Buy Now, Pay Later May Give Consumers a Better Credit Solution.