What is Buy Now, Pay Later (BNPL)?
Buy Now Pay Later (BNPL) is growing in popularity as it provides customers with a seamless shopping experience. As a 100% digital solution, BNPL simplifies the one-click checkout process for the users. It’s no rocket science to use BNPL, to get the services, the buyer must sign up at checkout once and spend the balance to shop at various brands. BNPL usually comes with a flexible payment schedule with low-cost or no-cost financing.
Pros of this facility
Buy Now Pay Later has major pros. Some of which are:
- It is convenient to use
- Fast, easy set-up and approval
- Interest-free terms
- Easy repayment
- An alternative to a credit card
- Auto charging
What are Buy Now Pay Later apps?
Buy Now Pay Later app is a software system or app that customers can use for online payments such as – bookings, purchases, and other payments required. It is an online payment app, but none needs to borrow from their wallet. It means that whenever these BNPL apps do not have money in the customer’s wallet or after 15-30 days, they have to pay for these apps whenever they need money.
The main feature of Buy Now Pay Later is the one-click credit facility service available at merchant Apps and checkout websites. Through BNPL, one can use this short-term credit option to make instant purchases and pay them off later.
Driving a better customer experience with BNPL
Online merchants, vendors, and marketplaces always try to give customers a shopping experience with an additional payment feature. BNPL payments are interest-free, and sign-ups are much faster than credit cards.
This service model is being continuously and persistently used by retailers who offer low-value or low-value products but want to convert, increase cart size, reach new customers, and keep existing ones. Since the fee is higher, it is not appropriate for businesses or cost-sensitive businesses to sell services or software. Adding a BPNL feature results in an increase in sales value; statistics prove so. Merchants have implemented its BNPL products for e-commerce with a considerable increase in conversions and checkout value. It is a way to ensure that the revenue targets are met successfully without resorting to discounting strategies. A BNPL alternative to new customers could attract customers who were previously hesitant to buy the product because the price was out of their budget. Providers will disclose a store’s products and brands to millions of potential customers. Loyalty customers who know this option are available at an e-commerce store, and like the seamless nature of the customer experience, they are more likely to return for a repeat purchase.
What does it mean for the customer?
Buy now pay later is a great feature, helping customers apply to digital credit and indulge in last-minute purchases or meet an urgent financial requirement. However, it also means greater responsibilities for the user. Instead of simply downloading an app or to start using the feature of BNPL, they should ensure that the platform is credible and that the offering has made the platform as good as it sounds. They need to check the value being offered on credit, the terms including the duration, and the interest charges on loan extended. It is also advisable to check the verification process and the turnaround time for the verification to happen. And lastly, focus on the app company’s reputation, take expert views, and research diligently before using this feature.