Buy now pay later services have become a more popular choice for shoppers over the last few years, and it has meant a boom in sales for those businesses who give that option to their customers online. If your business hasn’t yet utilised buy now pay later services, here’s how they can boost your sales.
Buy now pay later isn’t a new concept and in fact, has been used by businesses all over the world for many years, but is now making moves to the world of ecommerce, and there are many reasons why it’s quickly becoming not only the shoppers choice but also a top choice for ecommerce business owners.
With recent global circumstances surrounding COVID-19, online shopping has become more important than ever before, and having flexible payment options is now a must in a post-corona world.
Reduce abandoned carts
The first main benefit of using a buy now pay later service is to help reduce your abandonment rate. By providing your customers with a range of options at checkout from credit or debit card to PayPal and buy now pay later options they can still checkout with the items they want if the total order value is more than they can technically afford.
Giving the customer more control and power over how they pay for items helps encourage purchasing across the board and research shows that younger shoppers tend to stay away from using credit cards and opt for buy now pay later options. If this is something that you haven’t already added as an option on your shop’s checkout then you need to get in touch with our Payment Specialist to discuss further.
Secure larger order value
Another benefit of having a ‘buy now pay later’ option on your online shop is that you’re opening up your customers to be able to place orders with large values. Being able to split the payment over several months or simply save and pay for it in full later gives your customers more flexibility and therefore more control over their purchasing decision.
The increase in the customer’s purchasing power will result in more sales and according to Klarna online shops who took advantage of their buy now pay later service saw a 58% increase in average order value (AOV) and a 30% lift in checkout conversion rates.
Buy now pay later removes an additional barrier to purchase without putting you as the shop owner at risk. By using a third party payment gateway that offers buy now pay later, you and your business won’t be liable for collecting the monthly payments for the purchase, and the transaction is done securely through the payment gateway provider.
Customers also benefit from the reduced risk, particularly if they’ve never bought from you before, having a few reputable payment gateway options on your online shop including a few different ways to pay also reduces the risk for the customer.
Overall, buy now pay later options are a great benefit for both online businesses and customers alike. They give your customers more control over their purchases, open them up to higher-order values, and with no risk. If you’d like to speak to our Payments Specialist about getting buy now pay later on your online shop, book in here.